Tag Archives: Start up

Computer Monitor for small business

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Are you staring at a laptop screen trying to work on a large spreadsheet? An attached monitor may be just the tool you need to increase your productivity. But which one? A good basic monitor sells for around $400, but some the same size might be $1000 more. Why? This guide will explain what you need to know about a computer monitor and help you understand the key features you should consider when making your buying decision.

A computer monitor, screen or display is a piece of hardware that displays the video and graphics information generated by a connected computer. Monitors are like TVs but usually display information at a much higher resolution, showing more detail and making them easier to read.

WHY should I buy a better computer display?

If you have a desktop, then you need one. If you buy a laptop, it is a handy addition (for more information on choosing a desktop or laptop, see our PC guide).

Most laptops and desktop computers can run more than one display, and the display can be spanned across several external monitors. Additionally, a laptop display can be mirrored or “cloned” to appear on an external monitor.

Having one or several monitors expands the workspace for a variety of tasks. An external monitor can deliver improved image quality and much more screen real estate if you have a small laptop.

Getting a new monitor is a bit like getting a new TV. It will look better than the old one with a sharper picture and better colours. Generally speaking, the more you pay for a monitor, the better-quality image you will get.

WHAT do I need to know about computer screens?

The size of a monitor is measured in inches from one corner of the screen to the other, not including the outer casing.

The monitor will require its own power supply and will need a connection cable to connect to a computer.

The connection options include:
  • HDMI – preferred method, same modern standard as a TV. Both a modern PC and monitor should have one. It will carry video and audio and support up to 4K video.
  • DVI – older standard for HD video
  • VGA – old standard using those blue plugs with pins
  • Thunderbolt 3 (USB Type C) – high-speed cable with a very small connector that will carry data, ethernet, power, video, and audio. Sometimes the only video connection port on a smaller laptop. 
  • USB – USB 3.0 is the modern standard, and although it can carry video, it generally does not.
  • Wireless – normally referred to as screen sharing or Miracast.  It uses a direct Wi-Fi connection to stream your PC image normally to a TV.

A monitor may not run to its best ability if you do not load the drivers on your PC for that monitor. Look for some instructions in the box.

You can adjust the settings of the monitor display, although most don’t. If you work with graphics, photos or video, you should explore these adjustments.

Some monitor brands provide software that will turn one monitor into many. When using a very big screen, you can trick the PC into thinking it is looking at different screens even though they are on one screen. Useful when you need to keep certain apps open all the time, and you don’t want to be resizing windows.

HOW do I choose a computer monitor?

Computer monitors can be bought online, at Officeworks and the likes of JB-HiFi and Harvey Norman. Not knowing your particular needs, it is hard to recommend a monitor beyond suggesting a 27-inch monitor with Full HD resolution.

When choosing, you should consider:
  • Size – measured in inches. The screen becomes a much longer rectangle the larger the size. It allows you to do more on one screen. As an alternative, some people may buy two screens to get the same effect.
  • Resolution – The more pixels, the better the picture. 1920 pixels by 1080 pixels is Full HD (1K) or FHD, double that is QHD (2K) and four times is 4K
  • Response times – (preferred by gamers) is the time it takes to change a pixel colour. Shorter is better, and it reduces the blur effect when watching fast action like sport on the screen.
  • Colour reproduction – Panel and processor quality will affect colour reproduction. Better is more expensive but simply look at quality instore before buying. It is important for those working with images that consider a monitor certified as colour accurate.
  • Base Mount – is the base adjustable, and how will that work with the way you will look at it.
  • Thunderbolt 3 laptop power – Some monitors support powering your laptop from the monitor. This same cable will carry the video and USB traffic (keyboard, mouse, USB drive etc.) Thus, only one cable is required for everything simplifying laptop power and connection to all your other devices.
  • Touchscreen – If the monitor supports this feature, you can control actions with your fingers on the screen.
  • Inbuilt speakers – allows sound to be projected from inbuilt speakers in the monitor.
  • Microphone and Camera – If installed it helps with video calling.

HINTS

Visit the Gadgetguy website to see reviews and recommendations on various monitors.

If you need to connect an older cable to a newer port (such as HDMI to VGA), there are adapters for this purpose.

Watch out for specials. As this is such a competitive market they are always around and will save you some money.

SUMMARY – best computer monitor for your small business

Having a good computer monitor will help you be more productive and enable you to see more clearly. When buying, you should have some sort of budget in mind then see the size you can get for the quality and resolution of the picture you need for your job. Ensure you have the right cables and that the display stand will work with your needs.

Register a Business Name

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Your business name is your reputation, and hopefully, it is worth something over time. The last thing you want is to lose it or find someone else who owns it. This guide will cover the process of registering a business name in Australia.

A business name is a name your business operates under. You need to register a name if you conduct business under a name other than your own.

WHY do I need to Register my Business name?

If you do not register your name, you may find someone is already using it, or someone else could register it. Then you would have to find a new name and waste any effort you have already taken establishing your name. There is also the potential for legal action against you.

WHAT you need to do first – Search business names

After you have chosen a potential name, your first port of call should be the Australian Business Name index. ttps://connectonline.asic.gov.au/RegistrySearch/faces/landing/bn/SearchBnRegisters.jspx?_adf.ctrl-state=q7ueeovpl_45

Here you must select “business names index” then enter your potential name in a search box. You will then be presented with a search result. Here you will see if the name is already taken or available.

Your next step should be a simple search on the internet to see if anyone else is using your name and, if so, in what way.

Assuming no one has already used it and your name is not close to someone else’s, you can now apply to register that name. Note some words like “Bank” or “Royal” cannot be used as they might mislead people about your activities.

HOW to register a business name:

  1. Determine your business structure.  Be sure to read our essential guide on choosing a Business structure
  2. Apply for an ABN (Australian Business Number) https://asic.gov.au/for-business/registering-a-business-name/before-you-register-a-business-name/australian-business-number/
    You may have 2 or more business names registered to the same ABN as long as the business structure does not change.
  3. Sign into ASIC Connect. Steps to register can be found here https://asic.gov.au/online-services/business-names/#steps-to-register
  4.  Once logged in Select ‘Business name’ from the drop-down box
  5.  You will now be required to enter your ABN, the proposed name, how many years you want to register for, and your details
  6. Review the information you have entered, most importantly did you enter your proposed name correctly?
  7. Pay for the application and wait for your registration to be processed

HINTS

Make sure you have the right spelling!

The cost of registering a business name can be found here. tps://asic.gov.au/for-business/payments-fees-and-invoices/payment-options/business-name-fees-and-payment-options/

You must have an Australian registered business name if you wish to register an Australian internet domain name like yourbusiness@com.au.

SUMMARY – Your Brand

Selecting a business name gives you an identity. Registering means you are the sole owner of the name and can also register an Australian internet domain name.

How to complete a BAS statement

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If you are reading this guide, you may have learned that you must do a BAS statement, and this guide will help you prepare and lodge your statement.

The business activity statement BAS is a form submitted to the Australian Taxation Office ATO by registered business entities to report their tax obligations, including GST, pay as you go withholding, pay as you go instalments, fringe benefits tax, wine equalisation tax and luxury car tax.
(Source Wikipedia)

WHY do I need to do a BAS statement?

If you are a small business that exceeds $75,000 turnover or provides taxi or ride-sharing services, you must register and charge for GST. You need to lodge a business activity statement.

Your Business Activity Statement will help you report and pay your:

  • goods and services tax (GST) – See our essential guide on GST.
  • pay as you go (PAYG) instalments – is a withholding tax that requires you to pay incremental amounts of your business income to the ATO. These payments accumulate towards your expected end of year income tax liability.
  • PAYG withholding tax – You withhold this tax on behalf of your employees. They will get credit at the end of the financial year as part of their personal income tax return.
  • other taxes including wine equalisation tax, fuel tax credits, and luxury car tax.

WHAT do I need to Complete a BAS statement?

The fields you need to complete in your BAS will depend on your business structure and whether you’re completing a quarterly or monthly report or a monthly BAS if turnover is above $20 million.

The ATO will automatically send you a Business Activity Statement when it is time for you to lodge.

When completing your BAS statement, the ATO states:

  • Enter whole dollar amounts – leave cents out and don’t round up to the next dollar
  • Enter each invoice once only
  • If you account for GST on a cash basis your expenses and sales must fall within the period you made or received payment
  • Only complete the fields that apply to you – if you have nothing to report, enter zero
  • If you’re doing your BAS manually, double-check your figures and calculations
  • You can always correct a mistake made on an earlier BAS

The ATO runs webinars on completing your activity statement, and bookings can be made here.

Visit the ATO website for help completing other fields in your BAS:

HOW do I lodge?

The due date for lodging and paying is displayed on your BAS. Lodge and pay on time to avoid any penalties.

BAS due by QuarterDue date
1. July, August, and September28 October
2. October, November, and December28 February
3. January, February, and March28 April
4. April, May, and June28 July

You can lodge:

You may pay your BAS with BPAY, credit, or debit card, and you will need to quote your Payment Reference Number (PRN) if doing online. If you are concerned about managing your business’s available cash, you can pay ahead, which will be credited against your next Quarterly BAS liability.

HINTS

  • Reconcile the BAS figures with your records
  • Check your purchases and sales are reported in the correct period
  • Only complete the sections that apply to you
  • Keep good records as part of your normal accounting practices
  • Ensure your sales reconcile with your bank statements (if reporting on a cash basis)
  • Keep all your tax invoices and GST records for 5 years
  • All claims must be in Australian dollars
  • You cannot make credit claims for invoices that do not include GST
  • Further GST and BAS tips can be found on the ATO website https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/BAS-and-GST-tips/

SUMMARY – BAS is your report on tax to the ATO

Lodging a Business Activity Statement is required if you turnover more than $75,000. Your reporting method is to the Australian Tax office for GST collection, PAYG income tax collection, and business income tax instalments. If you use an Australian designed accounting package, your administration will be greatly reduced. Ensure you accrue and do not spend the money you owe quarterly to the tax office.

Printer – which one for a small office?

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After buying a computer for your business, probably the next thing you will buy is a printer.  A printer can be bought for as little as $35 but is unlikely to meet your needs.  Maybe you have had a printer before and you just don’t know what you should consider next. This guide will help you understand your options and help you make your decision.

A printer is a machine that will recreate an image or text from a computer, usually on paper.

WHY do I need a printer?

You will need a printer if you want to reproduce a document or print an invoice or maybe even produce a brochure or photograph.

Yes, you will need a printer but really the question is do you need a colour printer?

If you plan to print or photocopy a lot it may be worth considering a Photocopier.  See our essential guide on photocopiers.

WHAT type of printers are there?

The first thing you need to know is that there are mono (black and white) printers or colour printers. 

  • A mono printer will allow you to print in shades of black and white. They can be cheaper and possibly smaller.
  • A colour printer will also print in mono if you wish it to but any printing in colour can use up to 50% more ink than mono driving up the cost per page.
There are 2 dominant printing technologies:
  • Inkjet
    • Advantage
      • Cost less
      • Better photo-quality printing
      • Smaller in size
      • More versatility
    • Disadvantages
      • Ink costs more (cartridge not ink tanks)
      • More cleaning required
  • Laser
    • Advantages
      • Better suited for larger print volumes
      • Unlike inkjet, it does not use print heads which can clog
      • Faster printing
      • Less maintenance
    • Disadvantages
      • No photo printing only standard paper
      • Colour quality can be lower
      • Tend to use more electricity
Is a printer just a printer? No, it can be more and will be cheaper than buying separate devices:
  • Single function or Standard is just a printer
  • Multi-function or all-in-one is a printer, scanner, and copier.  Some models may even allow you to send a fax. They are typically more expensive.
Share a printer

You can connect a printer directly to your PC but if you will share with others you can do one of the following if the printer supports it: (Be sure to see our essential network guide)

  • Wi-Fi – connected by Wi-Fi to a wireless router
  • Ethernet – connect by ethernet to a router
  • Smartphone – you can print from your phone via Apple Airprint  or Google cloudprint
  • Memory card – physically insert a USB stick or memory card containing the documents you want printed
If your business has a requirement there are specialist printers including:
  • Large format printers – prints on very large rolls of paper to produce CAD drawings or posters
  • 3D printers – uses plastic to create 3D models
  • Photo printers – designed especially to produce high volume quality photos

HOW should you choose a printer?

This will be based on your expected needs and you should consider:

Cost of ownership – This is represented as a cost per page.  Most vendors (manufacturers) will quote a price, which will enable you to compare models.

Cost of ink – the cost of ink and toner will be most likely be more than the cost of buying the printer so it is key to making a wise decision.  A cheap one is most likely to have the most expensive ink. Ink Jet printers with ink tanks have changed the equation with reasonably priced ink bottles that can refill an ink tank. The counter to this is the ink tank style printers are more expensive upfront to purchase.

Quality of printing – An indication of quality is a measurement called DPI or Dots per Inch. This allows documents to be printed with a very fine resolution.

Speed – If all you print is 1 to 2-page documents speed is not really a concern. If you print large documents then speed is important and you should probably consider a laser printer. Note that speed does depend on the type of document you print with a text document being faster than a full-page colour picture.

How much you print – each printer will have a monthly duty cycle which refers to how many pages a month a printer is designed to print.  This is not speed but a measure of how long the printer will last based on the volume it prints a month.

Paper size – A4 paper size is the standard in Australia for printing.  If you need to vary from this the cost of the printer will go up.  The next most common sizes are A3 which is 2 x A4 and A2 which is half A4.

Manual feed – makes it easy to print envelopes or letterhead

Tray size – This tray holds the blank paper.  The more you print the larger tray you should have.  Multiple trays allow different size papers or letterheads to be loaded to save a time consuming manual feed.

Multifunction – Great to have if you need to scan or print as discussed above.

OCR – Optical Character Recognition. A neat function that allows a document to be scanned and turned into a text document that can be edited.

Network – Make sure your model choice will connect to your network if you have one.

Service and Support – Most printers do not get repaired unless you have an expensive one.  However, support is important and the vendors’ commitment to supporting printer firmware (software) and its compatibility with PC software changes.  It is not unheard of for a printer to stop working until a vendor releases new firmware.

HINTS

In your print properties (setting from the print pop up box) you can select toner saver or draft, this will reduce the quality of the print but save you money on ink or toner.

Printing double-sided or duplex will not only save you paper but save on storage if you are printing a document to file.

Look for a solution with either an ink tank for inkjet or high yield toner for laser printers which will reduce your printing costs per page.

Small Business Answers has recently trialled the Epson EcoTank Photo ET-8500 which use 6 colour inks compared to the standard 4 colours. The six inks mean higher quality photos can be printed with a more accurate colour range. One set of ink bottles can print up to 2,300 high-quality photos or 6,700 pages in black and white or 6,200 pages at a lower cost per page. We found the photo quality to be excellent whilst also being able to do your normal office printing. Assuming you want to print photos and your printing volume is not enormous this is an excellent choice. The unit does not have a large paper feeder which would limit you if you print high volumes.

SUMMARY – Quality Printer

A printer is a necessary tool for small businesses. A cheap one may cost you more because of ink. Consider a quality brand that is designed to handle the volume of printing you plan to do allowing for growth.  Colour and multifunction will increase the price but give you more flexibility.

Our sister publication GadgetGuy has reviews on suitable entry-level printers.

Record Keeping for small business

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Running a small business is about understanding what is going on and about meeting your obligations. You might have obligations to employees, suppliers, the taxman or more simply an obligation to yourself to understand if you are making any money or the ability to look up a past agreement.  This guide will look at why record keeping is important, what you need to keep records on, and how to keep good records.

Record keeping is the activity or occupation of keeping records or accounts.
Record keeping in financial terms is the process of recording transactions and events in a ledger or accounting system. Since the principles of accounting rely on accurate and thorough records, record keeping is the foundation accounting.

WHY should I care about record keeping?

Keeping good records is important for any small business. Whether that is to help manage your costs, whether it is for legal, regulatory or tax reasons, or simply to help manage and improve your business.  Collecting, storing, and effectively analysing your data is vital.

Without adequate records, it would be impossible to measure the health of your business and to keep track of your progress. It also helps avoid fines for doing the wrong thing and demonstrate your financial position if you need a bank loan.

Records must be kept by law for:
  • 5 years for Australian Tax Office purposes
  • 7 years for Human Resources time and wages records
  • 2 years after you have offset a capital loss against a capital gain (individuals & small business)

Keeping good records will make running your business easier and save you time in the long run.

WHAT should I keep records on?

The types of records you should consider keeping include:
  • Client Files
  • Contracts
  • HR required records for 7 years
    • employee details including pay, leave and work hours
    • reimbursements of work-related expenses
    • workers compensation insurance for each employee
    • pay as you go (PAYG) tax instalments
    • superannuation contributions
    • ending employment
  • HR records recommended:
    • resumes and job applications
    • contracts of employment
    • performance reviews
    • trade or registration certificates
  • Business records (for example, business registration, formal meeting minutes etc)
  • General business information (for example, job tracking, customer correspondence)
  • Accounting and tax for 5 years
  • Business expenses
  • Bank statements / credit card statements
  • Annual tax returns
  • Quarterly/Monthly tax filings
  • Payroll
  • Inventory
  • Sales
  • Revenue
  • Petty cash
  • Vehicle logs
  • Invoices
  • Cancelled cheques and cheque stubs
  • Purchase orders

HOW do I make record-keeping easy?

Under Australian law records must be:
  • readily accessible if required
  • must be unchanged and must be stored in a way that restricts the information from being changed or the record damaged (changes may be permitted for correcting an error)
  • in writing (electronic or paper)
  • legible
  • in English
  • explain all transactions
  • accurate and not misleading

A bookkeeper or your accountant can help with this process but this will not remove your need to still be involved in keeping accurate records.

Although you can keep records on paper it will be much easier if you do so electronically.  Refer to our essential guides on expense management, accounting software and payroll software to understand more. If you are concerned about outlaying funds for software you could set up a series of spreadsheets to help manage your accounts.

Other key documents like signed contracts, lease documents etc should be kept in a safe preferably fireproof storage. These documents can also be scanned and stored electronically ensuring you have back up copies.  Refer to our guide on Storage and sharing of files.

Electronic solutions and storage of records have the following advantages:
  • back up records in case of disaster
  • automated processing and provide ready-made reports
  • produces taxation and employment reporting requirements for government submission online
  • keep up with the latest tax rates, laws and rulings
  • save on physical storage space

HINTS

The Australian Tax office (ATO) provides a record-keeping evaluation tool which will help you evaluate how well you are keeping your business records. https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=&anchor=RKET/#RKET/questions

The ATO provides an App for sole traders to help them record business income, expenses, and vehicle trips.  https://www.ato.gov.au/general/online-services/in-detail/mydeductions/mydeductions/

SUMMARY – keep records under Australian law

Record keeping is not just about keeping records for accounting.  Under Australian law, some taxation, superannuation and employment records must be kept for 5 or 7 years. 

Accurate and regimented record keeping will help you find the information you need, provide reporting and make running your business easier.  Modern accounting and payroll cloud-based solutions will not only streamline the process but also produce required government reporting for you.

Lack of record-keeping, false or misleading reporting can result in fines. Always ensure you have backup copies.

Mobile Phone Plan for small business

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I’m sure you have had a mobile phone plan for years and have a pretty good idea of how it all works.  In business, your phone becomes a critical tool that must be operational to keep the lights on. What are the differences between a personal plan and a business plan? This guide will help you understand what you should consider before signing up to a mobile phone plan for your business.

One thing for sure is plans change constantly. With around 30 companies offering mobile phone plans there is a lot of choice.  If you are a Sole Trader a personal plan may give you a better deal but if you have 10 phones in your business a business plan may be better.

WHY should I consider a Business Mobile Phone Plan?

A well-chosen plan will not only save you money but ensure you have the services to help you facilitate your business when you need them. For example if you have 10 phones you can have them on one bill reducing your administration.  A business plan might allow you to share a data pool between your workers allowing you more flexibility.

WHAT you need to know about Mobile Phone Plans

In Australia there are 3 physical mobile phone networks owned by Telstra, Optus, and Vodafone. However there are many Mobile Virtual Network Operators (MVNOs) who resell the offerings of the physical networks. You should take the following into account:

  • Network Coverage – Australia is a big country and mobile phones will only work where the main population lives. Does the provider offer the coverage you need where you need it?
  • MVNO coverage – Some MVNOs may not have full access to the coverage from their network provider. If you are expecting the same coverage in a rural area you may be disappointed!
  • Price – Normally expressed as how much you pay per month.  Note some prepaid offers might be for a 28 day period which equates to 13 periods a year instead of 12. Thus a lower ‘monthly’ price may actually add up to a higher amount than you expect over a year.
  • Phone plans – Normally means a new phone comes with your plan with its costs built into your subscription fee.  There are different ways the network operators do this and may involve subsidies on their part or even a separate lease with conditions like returning the working phone at the end of the agreed period.
  • Handset choices – Allows choice of different model handsets as part of your Mobile Plan.  The more expensive the handset the more your subscription is likely to be. Be sure to read our essential guide on Mobile Phones.
  • Sim Only – A Sim is a small chip transferable between mobile phone handsets that has your phone number associated with it.  A Sim-only plan means you do not get a handset with your subscription.
  • Contract – Or no contract refers to your ability to change network providers.  If you have a contract for 3 years you are locked into your payments unless you pay an exit fee.  This is normally associated with a handset where they must recoup its cost.
  • Post Paid or Prepaid – As a small business we would expect you would have a postpaid account where you pay monthly as opposed to a prepaid or pay as you go account.
  • Data allowance – Accessing the internet from your phone is critical in the business world. Your allowance relates to how much data you have to use in your subscribed period. If you go over your allowance you will pay a high price for excess usage.
  • Talk and text allowance – Most plans have moved to unlimited but refer to the number of talk minutes and the number of text messages included in your subscription.
  • International call inclusions – If you have overseas suppliers an inclusion in your plan could be a big money saver.  Check how many minutes are included in your subscription and to what countries?
  • Roaming inclusions – If you travel overseas normally your plan will not allow you to make calls or use data using your Australian subscription allowance.  You can still make calls but it can be expensive. Check if there is any inclusion or special deals available.
  • 4G or 5G – This refers to the technology behind how your calls and data are sent and received. The key benefit is the bigger the number the faster the data will be.  Note this is not your allowance but rather how quickly you can download a large file.
  • Value add  – Some providers might offer music or video streaming services as an inclusion, for example, sports streaming.

HOW do I make a decision on a Personal vs Business Mobile Phone Plan

Now you understand the factors you need to consider you must decide between the vast range of available business and residential mobile phone plans.

Personal plan benefits:
  • A sole trader or a business with only a few staff may find a residential plan is cheaper
Business plan benefits:
  • Normally allow a single bill for all accounts making it easier to process and compare users
  • Data allowances may be able to share across all users
  • The provider might do you a volume discount
  • Customer service is normally better, for example, shorter queue times
  • Bundling discounts across other services like fixed internet
  • Special insurance plans to keep phones operational

HINTS

If you’re a sole trader, you can use a personal mobile plan and claim work-related mobile use as a tax deduction.

 If your business is registered as a company, trust, or partnership, you should check with your accountant or bookkeeper. In general the ATO expectation is you can only claim the proportion the phone has been used for business purposes.

 Many people carry two phones, one for personal use and one for business, which is a personal choice.  You may wish to keep your lives separate or just have one number for both.  Indeed many mobile phone handsets are capable of what is referred to as dual SIM.  This means one phone can hold two SIM’s meaning two phone numbers (two Mobile Phone Plans) so you could still have the flexibility of a personal number and a business number but only carry one handset.

SUMMARY – three reasons to choose

To summarise if we were to pick three factors in how you make your decision we would recommend you consider coverage, data inclusion, and value for money.

You can find further information on current best value plans visit our sister site, Gadget Guy. A 12-month prepaid SIM-only plan may give you the best value from only a few dollars a week.

Australian Competition and Consumer Law

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Trust me, this widget is 10 times better than ?, environmentally friendly, and will last forever.  Reality is you cannot say this unless you can substantiate every statement. This guide will look at Australian competition and consumer law that you need to understand.

This guide is a summary of what you should consider as a small business.  It cannot be used as a definitive guide and it is strongly recommended that you further research this subject on the government websites Australian Consumer Law (ACL) and Australian Competition and Consumer Commission (ACCC). This summary does not cover every aspect.

The ACL offers consumer protections in the areas of: (1) Unfair contract terms, covering standard form consumer contracts. (2) Consumer rights when buying goods and services. (3) Product safety. (4) Unsolicited consumer agreements covering door-to-door sales and telephone sales. (5) Lay-by agreements.

The ACCC Competition and Consumer Act 2010 (the Act) is a national law that regulates fair trading in Australia and governs how all businesses in Australia must deal with their customers, competitors and suppliers. The Act promotes fair trading between competitors while also ensuring that consumers are treated fairly.

WHY should I care what the ACL and ACCC laws are?

There is significant government legislation associated with this subject and lack of knowledge is not an acceptable defence.  Significant fines apply for breaking the rules to ensure unfair activity does not occur.

WHAT Australian Competition and Consumer Law do I need to understand?

Australia Consumer Law (ACL)
  • Unfair contract terms – This protects a business or consumer when they agree to a standard contract which is subsequently deemed as unfair. For example, terms change, you agree to a price but the price is changed without notice.
  • Consumer Guarantees – applies to a consumer or business that purchases a product for less than $40,000. The guarantee is that a good or service will meet certain minimum standards. For example, a consumer buys a washing machine for $2000 with a 1-year warranty.  After 2 years the product fails.  Under ACL the consumer can claim that this product should have lasted more than 2 years and as such should be repaired or replaced.
  • Consumer product safety – As a business owner who sells a product you must be aware of mandatory standards or voluntary rules that exist around the safety of your product.  You will also have obligations around bans or recalls. For example, you cannot sell children’s toys that have small detachable parts that could be swallowed.
  • Sales practices – The ACL prohibits businesses from using unconscionable conduct when selling, unsolicited supply of goods, unsolicited consumer agreements, harassment  and coercion, or refusing to provide proof of a transaction when dealing with their customers. For example, you cannot try to trick someone into buying your service nor threaten them or refuse to give them a receipt if they ask for one.
  • Avoiding unfair business practices – The ACL prohibits businesses from engaging in unconscionable conduct including misleading or deceptive conduct and representations. For example, you cannot do an advertisement with disclaimers that are too small to read. Nor can those disclaimers change the main meaning of that advertisement, for instance, when the ad implies the item costs $50 but a condition in fine print means the real cost is $75
Australian Consumer & Competition Commission (ACCC)
  • Treating customers fairly
    • Offering warranties. A product or service must do what it says. For example, if it has a speed of 10 it must reach a speed of 10.  If you provide a warranty against defects you must comply with that warranty. A warranty against defects is provided in addition to consumer guarantees under ACL and does not limit or replace them.
    • Unfair business practices. It is illegal to engage in referral selling, pyramid selling, unfair contract terms, and accepting payment without intent to supply
    • Rules for gift cards. Cards must be redeemable for 3 years after the date of purchase and clearly show the expiry date.
    • Debt collection. It is illegal to mislead, hassle, or use physical force on someone who owes you money.
    • Selling parallel imports or grey marketing is when you directly import a product outside of a formal manufacturer distribution network. If you do you must
      •  be aware of, and comply with, product safety and labelling requirements
      • provide accurate information to consumers about the products you sell
      • ensure that you do not mislead consumers about their refund, return and warranty rights, and
      • understand your general obligations under the ACL.
  • Advertising & promoting your business
    • False or misleading statements.  It is illegal for a business to make statements that are incorrect or likely to create a false impression. This includes advertisements or statements in any media (print, radio, television, social media, and online) or on product packaging, and any statement made by a person representing your business.
    • Managing online reviews. You will be breaching the law if you do not remove fake reviews. You must disclose commercial arrangements. It is also considered misleading if you remove or edit negative reviews.
    • Door-to-door & telemarketing sales. If selling door to door you may not approach if a do not knock sticker is present and you must leave if asked. Telemarketing must fall under the Do Not Call Register Act and specified hours.  These types of sales are bound by a 10 business day cooling-off period allowing customers to cancel for any reason.
    • Country of origin claims – It is illegal to misrepresent country of origin.  Some food products must display country of origin. Businesses wishing to display Australian-made can find more details here. https://www.australianmade.com.au/
  • Pricing & surcharging
    • Setting prices is at your discretion but cannot be done in collaboration with a competing business. You may not set a minimum price which a product or service can be sold by your retailers. Selling below cost is illegal if it is found it was done so to damage a competitor.
    • Displaying prices must be clear and accurate and display the total price.
    • Payment surcharges for EFTPOS should not be excessive.
  • Anti-competitive behavior
    Business practices that limit or prevent competition are illegal.  
    • Anti-competitive conduct. Prohibits contracts, arrangements, understandings or concerted practices that have the purpose, effect or likely effect of substantially lessening competition in a market. 
    • Cartels. Agreements made with competitors to fix pricing, share tender information, or agree to restrict production is illegal. For example, two competing businesses agree to sell their product for the same price.
    • Collective bargaining & boycotts. It is illegal to agree with a competitor to negotiate with a single supplier on terms as it is to agree to boycott a supplier.
    • Exclusive dealing.  It is illegal to force another business to comply with your conditions under the threat you will withhold supply or pricing.  This could include ceasing supply if they deal with a competitor or if they keep discounting your product.
    • Imposing minimum resale prices. Suppliers may suggest a retail price that a reseller charges but cannot stop resellers charging or advertising below that price.
    • Refusal to supply products or services. Suppliers have the right to choose who they do business with however it is breaking the law if that refusal is based on one of the above anti-competitive points.

HOW can I learn more about Australian competition and consumer law?

You must understand the rules and follow the rules. Additional details can be found:

ACL – See our Small Business Answers guide here

ACCC

For more details on how these laws are admistrated see Fair trading – The Competition and Consumer Act of 2010 is a national law administered by ACCC nationally and state and territory regulators https://www.business.gov.au/products-and-services/fair-trading/fair-trading-laws

SUMMARY – protect you and your customers

Australian competition and consumer law is designed to protect both consumers and businesses from practices that misrepresent, disadvantage, deceive, or reduce competition.  The government has large departments to police the associated laws and you should ensure you and your staff are familiar with those laws that will affect your business.

The following guide published by the ACCC explains Australian competition and consumer law in more detail. https://www.accc.gov.au/publications/small-business-the-competition-and-consumer-act

Accounting Software to run your business

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You started with a shoebox of receipts, now you have a storage box or maybe you are meticulous and have it all on a spreadsheet.  Either way it is time to start thinking about accounting software. This guide will look at why you need it and lead you through what you should consider in making your decision.

Accounting software, package or system describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, journal, general ledger, payroll, and trial balance. It functions as an accounting information system.
source Wikipedia

Accounting software has changed a fair bit over the last few years with new competition driving new features and simplicity.  Probably the biggest change however is that it is all in the cloud. Put simply this means you rent access to the solution and do everything via the internet.  You no longer have software that you must buy and host internally on extra computer hardware that you must keep safe.  Instead you have a user-friendly solution that you can access from anywhere that integrates with your bank, POS system, etc.

WHY should you buy Accounting Software?

WHY should you buy Accounting Software?

Saves you time – track invoices, manage bills and expenses and pay staff in a few clicks
Tax time ready – calculate GST, PAYG and BAS reports
Built for Australian legislation reporting
Get paid faster – online invoices, pay now buttons and automatic payment reminders
Enter receipts on the move – use your smartphone to take a photo of the receipt from Bunnings. Great for travellers and tradies.
An external accountant or bookkeeper can have instant access at the same time you do
Reporting lets you quickly get a good idea of how your business is going now
Accounting software becomes increasingly beneficial as the business gets more complicated

HOW to make a decision on which Accounting Package

So now we understand that this software solution is so much more than getting a bill in the system, it is about automating the whole process.  Let us look at the features you should consider when selecting which vendor:

  • Different accounting package vendors offer different features and even within the same company they offer different levels which means you only get what you need.  For example, if you have no employees you do not need the payroll functionality. Consider what package you will need?
  • Pay Staff – Do you want payroll integration? Does the system calculate all payroll requirements including PAYG, annual leave, long service leave etc.? From July 2019 small employers with 19 or less staff must report payroll info to the ATO through Single Touch Payroll. https://www.ato.gov.au/Business/Single-Touch-Payroll/ (Be sure to read our essential guide on Payroll)
  • Ease of use – As an untrained small business owner how easy is it to learn to use the package and be assisted through the software to understand what the requirements are of controlling your finances?
  • Invoicing – Send customised, trackable invoices.  Can clients pay right from the invoice?  Can automatic payment reminders be sent?
  • Tax and GST –  Can you easily and automatically track what you owe, and see all your position at a glance?
  • Does the software support Standard Business Reporting (SBR) allowing you to lodge your GST BAS requirements? (Be sure to read our essential guide on GST)
  • Application integration – Can the package be connected to other software solutions you are using?
  • Time tracking and billing – If you charge by the hour are there features that will simplify gathering this data? For example, a smartphone App.
  • Reports and budgets – What level of detail do you need and can you compare against a plan or budget?
  • Track jobs – Does the system track stock, work in progress, orders, jobs, and other task management requirements?
  • Bills and expenses – How easy is it to upload your bills and easily categorise expenses?
  • Point of Sale (POS) integration – Is there a seamless connection to track sales and inventory movements?
  • Inventory – If you hold inventory/stock will this package help you forecast and manage it? Can you barcode scan items in and out if you want to?
  • Bank Reconciliation – Will the system be able to handle multiple bank accounts?
  • Manage customers & suppliers – Can you easily see which customers owe you money, and which you need to follow up on?
  • Take payments – Does the software allow EFTPOS or credit card processing?
  • Cash flow management – Can you see your money in and money out at a glance, and understand quickly what your cash position is?
  • Online accounting – Is there a smartphone or tablet app that lest you enter data or receipts as well as run your business from anywhere?
  • Multi-currency – Does the system need to handle foreign currency?
  • Account sharing – Can you invite accountants, bookkeepers, and partners so they can help you manage your business?
  • Security – What security and backup procedures do they offer to help you protect your data?
  • Customer Relationship Management (CRM) – Does the system keep detailed records on customers including what they buy, how often they buy, and when they buy?
  • Service – What support and training are available, what hours and does that support understand Australian regulations?

HINTS

For more information on what accounting tools are available and the specific features, they offer visit

Free trials are available to help you compare and chances are your financial expert will have an opinion on which one to use.

The accounting software packages you should consider in no particular order include Xero, MYOB, Quicken, Reckon, QuickBooks and Sage.

SUMMARY – Right Accounting Software

Having the right accounting package will save you vast amounts of time and effort and will help keep your business compliant with government regulations. 

Although these modern tools are brilliant in helping you control your business finances they will never replace having access to a financial expert.  We strongly recommend you have access to an accountant or bookkeeper to help guide you.

If you do not have external financial support today you can visit this site to help you find the right person

Choosing a business structure

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Right at the beginning of your Small Business journey, you need to decide which business structure is best for your situation. This will have an impact on the complexity of running it as well as taxation and personal liability implications. This guide will explain your options to help you decide which is best for you.

A business structure is the legal structure in which you set up your business

WHY does a business structure matter?

The practical impacts of this decision can affect how much tax you pay, legal implications like licensing and personal liability, and the control and procedures you have in running your business.
You cannot run a business unless it fits into a business structure.

WHAT are my business structure choices?

The four most common types are:

  • Sole Trader – one owner full control
  • Partnership – 2 or more owners split income and liability
  • Company – a legal entity where liability may be limited
  • Trust – a person manages assets for the benefit of others

HOW do I decide sole trader, partnership, company or trust?

This can be a very complicated decision therefore seeking advice from an accountant, lawyer or business advisor could be a worthwhile investment.  The good news is that if you change your mind or circumstances change, you can change your business structure at some point in the future. 

Sole Trader

This is the simplest form of setting up a business and requires the least amount of paperwork but the most risk to your personal assets. If things go wrong, you could lose your house.  On a more positive note, you make all the decisions and all the reporting is rolled into your personal tax return. 

You will have to keep all records, like receipts, for 5 years and all profits and losses fall back to you and cannot be split. If you hire employees, you are still bound by any government legislation obligations like superannuation contributions and workers’ compensation.

Partnership

There are 3 types of partnership structures you can consider:

General partnership – all partners are equally responsible for managing the business, and each has unlimited liability for the debts and obligations the partnership incurs.

Limited partnership – is a great tool for partners who want to invest in a business but not be involved in the day to day.  Here liability is limited to the amount of money they have contributed to the partnership.

Incorporated Limited Partnership – Put simply one partner has unlimited liability the rest of the partners have limited liability.

Each state has slightly different laws for partnerships and details can be found here:

A partnership must have an ABN and each partner requires a tax file number.  Each partner will be responsible for the tax implications on their share of the business and must take responsibility for their superannuation.  If a partnership earns more than $75,000 they must register for GST.

Company

A company is the most expensive option to set up and run. It is a legal entity and as such can borrow money, take legal action, and be sued by someone else.  As a shareholder of a company whether it be 10% or 100% you are only liable for any unpaid money on your shares.  So in theory they cannot come after your house, however as a director of that company, if you are found to be in breach of your legal obligations, you could be sued. A company is owned by its shareholders but controlled by its directors. More information on this can be found https://asic.gov.au/for-business/running-a-company/company-officeholder-duties/ . All money a business makes is owned by the business and an annual tax return must be completed in its name.
You must register for the Goods and Services Tax (GST) if revenue exceeds $75,000.  The Australian Securities and Investment Commission requires companies to keep records for 7 years.  Directors also have an annual obligation to show a business is solvent which means you can pay your debts and have the cash to run your business.

Trust

This is an expensive way to run a business but might have certain tax benefits.  A formal trust deed must be established that sets out how the trust operates and also comes with annual formal administration tasks.

According to the Australian Tax Office:

Trusts are widely used for investment and business purposes.

A trust is an obligation imposed on a person or other entity to hold a property for the benefit of beneficiaries. While in legal terms a trust is a relationship, not a legal entity, trusts are treated as taxpayer entities for the purposes of tax administration.

The trustee is responsible for managing the trust’s tax affairs, including registering the trust in the tax system, lodging trust tax returns, and paying some tax liabilities.

Beneficiaries (except some minors and non-residents) include their share of the trust’s net income as income in their own tax returns. There are special rules for some types of trust including family trusts, deceased estates, and super funds.

The Australian government also provides a handy tool to help you decide. https://register.business.gov.au/helpmedecide

HINT

This handy guide can help you make your decision. Be sure to select I am not sure. https://register.business.gov.au/helpmedecide

SUMMARY – Research Business Structure

If unsure get some professional help deciding and possibly assisting you to set up your business structure.  It comes down to how many owners there will be and how you divide profits and liabilities.  For those of you worried about losing your house, this can be protected by insurance as discussed in a separate essential guide on Business Insurance.

IT Support – help with technology

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Chances are you are reading this because you need help now!  IT support is one of those things that you never think about until something goes wrong or you need to do something but have no idea how to do it. This guide will look at how to get support and what you must consider.

Information Technology (IT) support refers to any assistance given with technology-related products and services. The role of an IT technical support engineer is primarily to help monitor and maintain computer systems and networks across an organisation.

WHY is keeping my IT running so important?

If your computers and technology are not working you may not be able to make any money, it may also affect your customer service to valued clients. IT support can be critical to your small business to get you running again.

WHAT does IT Support cover?

IT stands for Information Technology and in your business could extend to your computers, phones, printers, network, software, and cloud solutions you use like an accounting package or POS system.

IT support will come in three forms:
  1. Advice & installation of solutions
  2. Repair of issues
  3. Monitoring and optimisation of your IT

The actual support is provided by experts who are most likely running their own small business servicing clients like you. Some of the most common services would include:

  • Hard drive, email, and network configuration
  • Software installation
  • Software, hardware, and network upgrades
  • Desktop support
  • Application solution recommendations
  • Server and application support
  • Cloud services integration
  • Preventative maintenance and network audits
  • Data backup and recovery
  • Virus protection and removal

HOW do I choose the right IT support for my Small Business?

You should consider the following points to determine what you will require from an IT vendor:

  1. Do you need onsite support or do you just need to visit your local computer store where you bought your PC or other IT devices?
  2. Might you require out of hours support?
  3. Can the IT support representative talk to you in plain English so you understand what is going on?
  4. Are phone support and remote interrogation offered?  This will save both time and cost.
  5. Area of coverage. If you have a 2nd location can this firm provide adequate support?
  6. What sort of response times do you need and what can be provided? Rule of thumb here is the more critical the resolution, the better the response time needed. You could represent this by how much money you are losing if an IT solution is not working.
  7. Do you want a Service contract that would provide you a predictable fixed cost per month or pay by the hour or a hybrid of the two?
  8. It is possible to have an IT support business monitor your IT environment which could mean issues are fixed before you are aware of them? This could be as simple as creating an alert to notify the internet is down.
  9. What is the process to log a service request and to check its status?  Many IT service companies offer a portal where “tickets are logged” via an internet portal providing you extra peace of mind.
  10. Does the proposed IT services business have a good reputation?  You can ask for references and also search on the internet.
  11. How much are you prepared to pay to keep everything running?  It may come as a surprise to many that the cost of IT support can far exceed the cost of the hardware (PC) in the first place.

You can find IT support by googling small business IT support, asking associates for recommendations, or even asking your local computer store. Note it can be hard to find a good vendor.

HINTS

  • Reliability comes in two forms.  Make sure the business you deal with is reputable and delivers consistent service.  Having great customer service in the first month is no good if it is bad in the 3rd month. Also understand the actual person visiting your office of a multi-person firm may not be as reliable as another.  If the individual is sub-standard insist on a different person servicing your business.
  • Confidentiality is critical.  Remember you are giving access to an external party to your confidential information held on your computers.
  • If your IT device such as a printer is not working is it a configuration issue or is it just broken and need a warranty repair.  If it is a warranty repair, this will in theory not cost you anything.  Having an IT person in your office to tell you this will incur a per hour fee.
  • Same day service and service out of normal business hours will most likely cost you more.
  • We have a whole guide devoted to back up however if you do nothing else ensure you back up your data and keep it securely on the cloud or at an external location. If everything goes wrong, you will still have a copy.

SUMMARY – Reliable Tech Support

IT support may seem expensive until you need it, and at that time you will be prepared to pay a lot to get back up and running.  Pick a reliable support organisation that you can call on when needed.