Tag Archives: POS

Gift cards – why you should offer them!

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A gift card is a convenient way for a customer to provide a gift to a friend, family member or business associate. They are most commonly used for gifts when you don’t know what to buy someone. Interestingly a survey done in 2017 by finder.com.au found that one in seven gift cards purchased in Australia went unused. This guide will look at why you should offer them, what are the rules you must abide by and how you go about offering them.

A gift card, gift certificate or gift voucher is a prepaid stored-value money card or certificate, usually issued by a retail store or bank, to be used as an alternative to cash for purchases within a store or related businesses.

WHY should I offer gift cards?

Gift cards offer several advantages for small businesses; the cost to provide them is minimal compared to their potential return. Consumers generally feel a gift card is an opportunity to spoil themselves.

Small Business Advantages include:
  • Give customers an incentive to spend money at your business and create repeat purchases.
  • Revenue is generated in advance sales as no goods or services are redeemed yet.
  • Having customers carry a gift card around with your logo builds your brand.
  • In most cases, customers will spend more than the gift card amount.
  • Gift cards provide you with a promotional opportunity. Spend $100 and get a $10 gift card.
  • Customers may never actually spend the value of the card, whether it be the last few dollars on a card or the whole amount.

WHAT are the Rules around gift cards or vouchers?

As of November 2019, the rules changed around gift cards. The rules now state that a gift card must have a minimum expiry date of 3 years from the date the card is sold. That expiry date must be listed on the card and no post-purchase fees can be added. A post-purchase fee would include activation, account keeping or balance enquiry fees. Penalties for non-compliance are $6,000 for an individual and $30,000 for a business.

When you sell a gift card/voucher, the customer has an asset of your business until the voucher is used. Thus, from an accounting perspective, when you record the sale of a gift voucher, it needs to be recorded as a liability posted to an Unclaimed Gift Certificate account. When the customer redeems the voucher, all you need to do is create an invoice and pay for it using the funds from the Unclaimed Gift Voucher account. This way, you can easily track the value of outstanding gift vouchers or write off any that remain unredeemed after the expiry date.

From a GST perspective, a gift card has a monetary value but does not need to be included in your GST activity statement until it is redeemed for products or services. The exception to this is when a gift card is not for money but rather a tangible product or service, then GST must be paid and reported on the voucher sale. For example, 10 hours of technical services.

 If the voucher expires before it’s redeemed, you’ll need to report the unredeemed amount as income and 1/11th (being the GST component) is reported and paid to the ATO.

HOW do I offer gift cards?

The three most common forms of gift vouchers/cards are:
  1. A credit card-sized plastic card electronically loaded with a specific money amount. Note that some cards can have additional funds added or topped up later.
  2. A gift certificate is some form of a paper promise from a business allowing you to redeem the specified amount back from the store.
  3. eGift cards or vouchers. This is normally a set of codes and sometimes a barcode that you can receive via email. These codes/barcodes can then be applied at the checkout for credit.
As a small business, you should consider the following:
  • Which type of cards you will offer as above?
  • How do you tell customers they are available? Signs, internet, etc
  • Will you restrict to set values or variables? Such as $50, $100 and $200?
  • Will the expiry be 3 years or more?
  • Can it be redeemed in your online store if you have one?
  • If you have multiple stores using the same brand, is the gift voucher transferable?
  • Integrating your POS and Accounting systems allows you to process and track these vouchers simply. (most have this functionality)
  • Are there any special terms? Such as not allowing gift cards to be used to buy gift cards or transferable for cash.

Some plastic card solutions make it simple to activate and redeem cards by simply swiping the card through your EFTPOS reader. Other solutions will require some other type of solution, like keying in a number. Be wary of a manual system that can be lost or stolen.

You can brand your gift cards by having a custom gift card printed by various companies for less than $1 each. However, note some POS software solutions require you to use their gift cards which may cost more.

HINTS

If you sell gift cards, make sure to showcase them in a highly visible place that customers must walk by. For example, placing gift cards next to the sales desk will lead to more impulse buys from customers.

SUMMARY – gift card solutions

Offering gift cards allow customers a convenient way to provide gifts to others. A small business benefits from having the money upfront and encouraging repeat visits to the store. Tracking and accounting is key to managing them with POS and accounting package companies offering solutions.

How to Invoice

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As a small business owner, you need to keep track of how much money is coming in and how much money is going out. The collection and creation of invoices is a key way to achieve this. Thus you need to know how to invoice.

In this guide, we will look at why, in most cases, legally, you must provide invoices to your customers and how you go about creating one. We will also look at when and how you want to get paid.

An invoice is a time-imprinted business document that itemises and records a transaction between a seller and a buyer. If the goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.

WHY should I invoice my customers?

If your business turnover exceeds $75,000, you must register for and pay GST. See our guide on GST. When you make a sale of $82.50 or more, including GST, you must issue an invoice.

If your business has a turnover of less than $75,000, your customers may demand an invoice, and even if they don’t, it is simply good business practice.  We have written a comprehensive guide on Record Keeping.

Legally you must keep a copy of your invoices for 5 years.  This can be a paper copy or electronic.  These copies will help you fill out your BAS.

If a customer requests an invoice, you must provide it in under 28 days.

WHAT terms should I offer my customers?

Before we look at the invoice itself, a very important decision needs to be made about whether you will offer your customers any credit.  This is when you expect to get paid for the goods or services that you are providing.  Options include:

  • Deposit – You require a percentage of the total upfront to start work
  • Cash on delivery – full payment is made at the time of delivery of the product
  • Payment on completion of work – full payment is made at the time of completing a service
  • Progress payments – a schedule of payments normally with milestones are set through the project
  • Credit terms – the customer is given a set number of days to pay
  • Discount for early payment – You offer an incentive or discount to pay an invoice early, like a 5% discount if they pay within 7 days

Ideally, you get paid early or at the time of delivery, however, many businesses will not accept that if you want to do business with them.  Unfortunately, some companies have conditions whereby you have to accept terms of up to 120 days if you want their business.  This is robbery, and the norm would be 30 days. The longer a business takes to pay you helps their balance sheet, the quicker you get paid helps your balance sheet.

You will also need to decide what payment methods you will accept.  A bank transfer will be the most attractive as it will not attract fees, you don’t have to handle cash, and the money should move to your account within 24 hours. Cash will require you to visit the bank.  If you decide to accept a credit card or Buy Now Pay Later (BNPL – for example PayPal), you will get the money straight away, but you will have to pay a merchant fee in the form of a percentage of the transaction.  This payment form is convenient for the customer and will get the money to you fast. 

Whatever form of payment or payment terms you decide to use, you will need to consider when building your cost model.

HOW to invoice

By far, the easiest way to produce an invoice is through an accounting package.  If you create one manually, this can easily be done using a spreadsheet or word processing application. You will find many templates available in those applications, as well as downloadable templates from the internet.

In Australia, an invoice must include:

  • the heading “tax invoice”
  • Your business or trading name
  • your Australian business number (ABN)
  • date of the invoice
  • a description of the items sold, including the units (hours or goods) and price
  • the GST amount– this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, a statement which states ‘Total price includes GST’ (only applies if you are liable for GST)
  • If the invoice is over $1,000, including GST, you must also include the buyers’ identity or ABN
Example

Tax Invoice

Freds Shop                                                                             17 Fake St
ABN: 32 123 456 789                                                           Your Town State Postcode

Date:  25 March 2021

To:         Valuable customer
              56 Down Rd
              Town State Postcode

Description                                                   Quantity             Total
Widgets                                                          1                           $40.00
Labour                                                            2hrs                     $80.00

Total Price including GST                                                       $132
GST                                                                                              $12.00

HINTS

Now you have created your invoice, you need to send it to your customer, with the most common form these days being via email.  Ensure you have the right contact, and it is also worth copying it to a company’s accounts payable team. You can, of course, hand-deliver or post.

If your customers do not pay your invoices, read more about your options in our guide on bad debts.

The tax office provides guides on requirements for tax invoices here.

SUMMARY – How to Invoice

Accurate invoicing will help you keep your business in check and the ATO happy.  An invoice can be easily created. You can use an accounting package to help with the greater task of managing to invoice and your accounts.  If your turnover exceeds $75,000, you must provide invoices that specify GST.  Invoices are not required for amounts less than $82.50, including GST.

Business Technology for set up

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As a small business owner, you need to be a jack of all trades.  One of the hats you need to have is head of IT or Information technology.  In this guide, we will look at what technology you will need to buy to establish a small business.

Information Technology or IT is the use of computers and telecommunications for storing, retrieving, analysing and to share information.

WHY should I invest in business technology?

Technology will allow your business to run efficiently and make your business look more professional.

It will enable you to communicate via a mobile phone and email.  You will have the ability to create documents and print them.  IT will allow you to control your finances and time. You will be able to safely store and share information and lastly be found and possibly sell on the internet.

So, put simply, what phones and computer stuff do I need to buy then set up to help run my business !

WHAT business technology do I need to buy?

Below is a checklist of technologies you will need to consider for your business and a link to find more information on selecting the right option:

What technology do I need for my business?

Mobile Phone. Features that will help make a difference in running your business.
Mobile Phone Plan. Consider coverage, data inclusion, & value for money.
Computer (PC). Demystifying the jargon to help you buy the right computer.
Computer monitor. Size vs cost vs quality for your business type.
Office Productivity Software. For producing documents, presentations, spreadsheets, databases, charts, and graphs.
Cloud-based software. Solutions to help you run your business, like accounting, payroll, staff scheduling, databases etc.
Internet Plan and Provision. Reliable broadband at a speed and capacity that suits your small business.
Internet security. Take precautions against a cyber threat to your computers.
Network or WiFi.  Allows your office to share resources like the internet or a printer.
Storing and sharing files. Collaborate with staff, customers and suppliers.
Backup. Protecting your data if the worst should happen
Printer. The cheapest one may cost you more!
POS System or terminal. If you are in retail, a café or restaurant you will probably need one.
Website domain and email. Creating an identity and allowing you to communicate on the internet.
Build a website. To boost your brand and help you sell.

HOW do I decide what technology to buy

All of the 15 items on the checklist above have their own Small Business Answers Guide to help you make the right decisions on what to buy. Be sure to click on those links.

If the whole process is still too much for you, we suggest you speak with an IT retailer or engage the services of an IT support person or organisation. See our guide on IT Support – help with technology

HINTS

Now I know you want the latest and best smartphone and computer but carefully consider how much all this will cost before you go crazy with the credit card.  Also, consider exactly what you need as you don’t have to buy everything on the first day.

If you believe you will expand and hire more staff, you can always pass technology down and invest in an upgrade for yourself.

The reverse of this, be careful of buying something that does not suit the job. For example, a cheap printer that is not up to the volume means you will be back out purchasing a higher specified printer.

Reviews of specific products can be found at our sister website Gadget Guy

SUMMARY – Setting up your office tech

Buying technology can be a very daunting experience, mostly due to the cost associated with it. It will, however, allow you to operate more efficiently and professionally.  The 15 step checklist and the associated 15 guides will give you the confidence to make the right decisions.

Roster Management for scheduling staff

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John wants Friday off to go to the dentist, Beth cannot work Fridays and Liam is on holiday.  So, who can work on Friday?  For many small businesses rostering staff is a constant challenge. This guide will help you select a roster management software solution by helping you understand what you should take into account.

Rostering software provides a small business with a simple and intuitive method to manage staff rosters and shift structures. Most modern scheduling software also integrates with a host of other services like POS, accounting, payroll, data storage, HR systems, and more.

WHY do I need Roster Management Software?

WHY do I need Roster Management Software?

When done successfully, productivity is maximised and sales are not overrun by labour costs. Week after week, month after month, this task needs to be repeated again and again. This can become a tedious and error-prone process if done manually or on a spreadsheet.

WHAT are the benefits of scheduling software?

  1. Improving communication. Developing and maintaining a strong line of communication with your staff is one of the most important aspects of running a successful business. Many common staff scheduling miscommunications can be prevented.
  2. Increasing accuracy and efficiency. Quickly create, view, and modify schedules, handle leave requests, and keep in contact with employees about scheduling needs. Some programs include automatically populating fields, which help you spend less time manually entering names and numbers.
  3. Maintaining compliance with government regulation. Scheduling applications can be used to automatically track employee hours to prevent law violations. This feature is especially useful for companies that have employees who can legally only work a certain number of hours, such as minors or people receiving disability pensions.
  4. Monitoring labour costs. Scheduling software makes it easy to record hours and payroll data, providing valuable insight into current and future expenses. This allows you better control over budgeting and overtime costs.

HOW do I select the right Roster management solution?

Cloud-based solutions have made this software accessible and affordable to small business and you should consider the following when selecting a vendor:

  • Support – Services to help get you set up and provide the ongoing support you no matter what time of day.
  • UI – User Interface is how the information is presented. Understand how easy it is to use and its ability to be customised.
  • Job library – Ability to have different job roles and to flag which employees can perform which roles. For example, differentiating between a cook and a server.
  • Locations – If you have multiple locations the ability for an employee to be set to only work at one location or both.
  • Employee onboarding – allows paperless capture of essential contact details, tax file number, and superannuation details for new employees.
  • Shift swapping – Allows employees to swap shifts amongst themselves with or without the manager’s approval.
  • Employee availability – Both the ability to drop a shift an employee cannot make or set rules like I am not available every Friday.
  • Employee rules – Ability to set a rule such as Jane is not to be rostered on with Rudy.
  • Forecasting – The ability to have the right number of staff scheduled for a busy Saturday versus a quiet Monday.
  • Employee portal – The ability of the employee to log on via a PC or smartphone to view or administer their schedule.
  • Access – Ability for manger and workers to adapt to last-minute changes like replacing
  • Smartphone access – Ability for manger and workers to adapt to last-minute changes like replacing a sick employee remotely.
  • Auto schedule – Allows artificial intelligence to recommend the best roster with a single click.
  • Schedule alerts – employees decide how they want to get alerts of schedule updates—either via email, SMS, or simply through in-app messages.
  • Group announcements – share company-wide posts including files.
  • Leave management– keep track of employee leave entitlements.
  • Payroll & accounting integration– Integration with your other software solutions to provide integrated information for simplicity and planning. (See our essential guides on Accounting, Payroll, and POS software)
  • Time Clock – Real-time capture of working hours electronically.
  • Reporting – One area that separates good shift planning platforms from average ones is reporting. When they are forecasting shifts, businesses such as restaurants and retail stores need to know what their labour costs will be and how that relates to sales. When integrated with an accounting or POS solution, rich data can help you better plan for events like Christmas sales.
  • Security – Ensure employees can only log in as themselves and that it is simple and secure.
  • eLearning – Ability to have an online training library to ensure staff have the right skills.

This software solution is usually priced per employee per month.

HINT

Roster management software only makes sense when your staff do not work standard working hours like 9 to 5.  We also see the benefit really kicking in when you are trying to manage a larger workforce.

Various vendors can be found by googling small business roster management Australia.

SUMMARY – Save time and frustration

This software solution will reap more benefits the more complicated your staff rosters are and the higher the number of people.  This is one of those tools that, once you implement, you will not survive without.

POS system or terminal

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In the old days we had a cash register which is a cross between a calculator and a cash box.  These days we have a POS System to transact a sale or order and take cash or credit card payment. In this guide, we will look at why you might need a POS terminal, what you kneed to know and how to buy the right one for your retail environment, cafe or restaurant.

A Point of Sales system (terminal or machine) is an electronic device that allows a physical transaction to occur between a merchant and a customer for a product or service. This is much more than an EFTPOS terminal which we have covered in a separate guide. Put more simply it’s the device they use at McDonald’s to enter your order and take your money.

WHY do I need a POS System or Terminal?

A POS system will automate your process of completeing a transaction rather than writing on paper, using a calculator or simple cash register.

Retail POS software brings many benefits to retailers aside from simply completing transactions. These include:

  • Sales reporting and analytics: Provides retailers with insight into their sales, helping users make informed decisions that strengthen the business.
  • Inventory management: Automates stock control and helps retailers determine optimal product counts and when and how to reorder top-selling products.
  • Customer management capabilities: Help retailers automatically record and track valuable customer information, enabling stronger relationships, and encouraging repeat business.

WHAT do I need to know about POS systems?

 They come in various flavours and can be from simple to very complex.  You could have a solution as a stallholder, a restaurant, or a retail store.  In a retail store with such a system you could scan a bar code to have the item automatically added to a sale, take payment, adjust instore inventory, and pass sale information through to your accounting system. Additionally, in a restaurant you could take an order via a smartphone, add a table number and have the order print out in the kitchen.

Many POS solutions today will help you run and grow your entire business, with information such as detailed sales reports and analytics, employee management and tracking software, inventory management, and gift cards.

HOW to choose the right POS system?

As a small business, it will make much more sense to try to find an off the shelf system rather than going for a custom solution that will have large upfront costs.  The benefit of using a POS system is that it can simplify and automate many of your administration tasks freeing your time up to spend growing your business rather than maintaining it. These cloud solutions will also integrate with your accounting package (see our essential guide on accounting packages and cloud solutions) prepopulating all the data so no manual input is required.

Even though this solution is cloud-based it will still require some hardware at the point of sale like a smartphone, tablet, PC, or dedicated terminal which you will interact with. A cloud-based solution is one where the computing and software sit external to your business and for a monthly fee, you get the functionality without having to invest and maintain expensive backend computing hardware and dedicated software.

When choosing a POS system you should consider
  1. Stand-alone system or Cloud-based?
  2. Does the package suit Australian conditions, for example GST?
  3. Will it work offline?  You need it to still function if the internet goes down.
  4. Does the provider have appropriate security in place to stop others from accessing your data?
  5. Does the solution come with hardware or do I need to buy separate hardware like a tablet?
  6. Cost – how much per month per terminal/store?
  7. Usability – Can it easily be used day to day with minimal training?
  8. Fast & efficient –  How quickly can the operator complete a transaction? Nothing worse than keeping a customer waiting
  9. Will it meet your future needs?  Can you easily add extra terminals?
  10. Does it support value add functionality that might assist your business? For example, inventory tracking
  11. Will it integrate into your existing or planned accounting package?
  12. Does it support EFTPOS or can EFTPOS be integrated?
  13. What reporting is available and how easy is it to interrogate and interpret?
  14. Is customer support available and during what hours?

Some of the companies providing cloud POS solutions in Australia today include Hike Up, Kounta, Retail Express, Square, and Vend.

HINT

Now that you have selected a POS system you also need to consider what additional physical hardware you might need beyond the terminal, tablet or smartphone, such as a cash draw, printer, EFTPOS terminal, bar code scanner, tablet mounting bracket, or contactless credit card reader.

SUMMARY – Off the shelf POS solution

A bit of time invested in this solution will pay dividends in years to come, streamlining your business and freeing up manpower to work on other parts of your business. An off the shelf solution will meet the needs of most small businesses.