As we enter the new year, we know business owners are looking to squeeze every bit of potential from their businesses – whether that’s maximising profits, bringing on new partners or staying ahead of payroll tax changes.

To keep you in the loop, MD John Knight talks with Director Craig Harrison in the video below to break it all down.

 

 

video transcript:

John: In this in the loop, I’ve got Craig Harrison with me, one of our directors here in the Brisbane Accounting division. Let’s dive straight into it. Craig, what are you mostly talking to your clients about at the moment?

 

1. profit

Craig: Yeah, thanks, John. Look, at the moment a lot of my clients are starting to look at what their business has the potential to do. Particularly from a profit perspective, looking at if I need to make a certain amount of money, what do I need to get at the top of my business revenue wise to be able to make that? Or the other way around, a lot of businesses know roughly what their revenue’s going to look like. Well, how can I squeeze as much profit out of that for the owners of the business?

John: Yeah, that whole profit potential, it even gets into breakeven and risk sort of things, doesn’t it?

Craig: Yeah, lots of things around that.

 

2. succession

John: And, and are they having these conversations because they want to look at things more strategically? Is is there some bigger picture stuff going on or why are they having these conversations?

Craig: Oh, there’s a few different reasons for a lot it’s, you know, cost of living and trying to make a bit more money. For some others, there’s some more strategic things around bringing people into the business with them, whether that’s from an overall succession or just bringing in people to add something to the business from skills, money, something to enable them to get more. But you know, it’s really important to understand that your business has some good profit potential, otherwise it’s going to be hard getting people in.

John: And when you bring in one of those key people into an equity position, it’s nice to show that opportunity, isn’t it?

Craig: Yeah, yeah. Particularly if you want them to really be engaged. It’s hard to get someone in there if there’s not really a lot of profit to be made.

 

3. payroll tax

John: What else? One final one?

Craig: Less fun: payroll tax is still a big, a real big one. The various offices of state revenue are really going hard at the moment. So looking at grouping, making sure you’re picking up all the different things that are paid to or on behalf of employees, contractors is still a really big one, less fun, but really, really important.

John: Yeah, Awesome. Thank you, Craig. If you’d like to stay in the loop, you can subscribe on the website, on LinkedIn. And of course, if you’ve got any questions whatsoever, please reach out to Craig, myself or your usual contact here at businessDEPOT.

 

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