Following up on customers that don’t pay their bills is a nuisance, but unfortunately, it is part of running a business.
There are ways you can protect your business and take action should a customer fail to pay you. Consider the following:
Clear terms and conditions
Outlining payment protocol on terms and conditions, and going over these conditions when signing up a new customer sets clear expectations about how you expect them to pay for your services. The terms and conditions should clearly state when a payment is due, penalties for late payments, and the various payments which will be accepted.
Make payments easy
One of the major reasons people put off making payments is because the process of doing so is tiresome. Make your procedure as easy as possible; offer a variety of ways to pay to ensure you are maximising your chances of receiving payments on time and even early. You may wish to offer your customers the following payment options:
- Online payments such as PayPal
- Direct debit
- Gift cards
- After purchase payment instalments
High interest on unpaid services
Including a high interest on overdue payments is a sure way to get customers to pay on time. If people know that their bill will be higher if they don’t pay by a certain date, they are more likely to pay before said date. If you choose to do this, ensure it is in writing and customers are aware of the high interest on late payments.
If you are still wondering how to make your slow customers pay, call Glance Consultants @03 9885 9793 for guidance!
Cloud computing is redefining the way small businesses conduct business; the advantages in the technology allow users to access data off-site, save on IT equipment and give businesses a competitive edge.
Here are a few benefits of switching your business to the cloud:
Growing businesses with a need for greater accessibility, i.e., flexible working arrangements for staff and so on, can benefit immensely from the cloud. Provided there is internet connection, you can access data from home, while on holidays, commuting or virtually anywhere across the globe.
Reduced hardware costs
Moving to the cloud can be likened to renting – you pay for your services through a cloud computing service provider. This means you don’t need to purchase expensive IT systems and the costs of operating and upgrading these systems are removed. Instead, the cost of new hardware and software, etc., is included in your contract.
Cloud computing has the added perk of providing regular and automatic software and security updates for you. Not only does this keep your technology up-to-date, it frees up time that would otherwise be spent manually updating systems.
Increased collaboration and control
Employees and third parties can access and work on projects at any time and from anywhere. Information stored in the cloud, such as files or documents, allow everyone to see the same version and include real-time visibility, so any changes made will be instantly updated.
Would you like to integrate cloud computing with your business, but not sure where to start from, consult Glance Consultants for some great ideas!
The ATO is warning self-managed super fund (SMSF) trustees about the risks of some emerging retirement planning arrangements.
Retirees or SMSF trustees who are involved in any illegal arrangement, even by accident, may face severe penalties, risk losing their retirement savings, and potentially, their rights as a trustee to manage their own fund.
The Tax Office has released additional information through their Super Scheme Smart Program to help educate retirees and trustees of these complex tax avoidance schemes and arrangements.
Super Scheme Smart provides case studies and information packs to ensure taxpayers are informed about illegal arrangements including what warning signs to look for and where to go for help.
Many of the arrangements are cleverly designed to look legitimate, give a taxpayer a minimal or zero amount of tax or tax refund or concession, aim to give a present day tax benefit and involve a fair amount of paper shuffling.
Some arrangements may be structured in a way which appears to satisfy certain regulatory rules, however, these arrangements are often ‘too good to be true’ and are in fact illegal.
Among the ATO’s previous concerns about dividend stripping arrangements and contrived arrangements involving diversion of personal services income to an SMSF, there are some new arrangements on the Tax Office’s radar, including:
- Artificial arrangements involving SMSFs and related-party property development ventures.
- Arrangements where an individual or related entity grants a legal life interest over a commercial property to an SMSF. This results in the rental income from the property being diverted to the SMSF and taxed at lower rates whilst the individual taxation or related entity retains legal ownership of the property.
- Arrangements where individuals (including SMSF members) deliberately exceed their non-concessional contributions cap to manipulate the taxable component and non-taxable component of their fund balance upon refund of the excess.
If you are concerned about your involvement with such arrangements, you can contact the Tax Office early to work towards a resolution.