Aussie Painting Contractor November 2023

The Importance of Training (Part 7) The process of applying paint by spray

The ultimate guide to improving

BUSINESS CASH FLOW 11 Important Things To Know

About the QBCC

Seek professional advice from those who are familiar with QBCC's requirements. s.

Technology and AI

Obtaining information has become as simple as running a Google search.

www.aussiepaintersnetwork.com.au

From the

Editor

Hey Everyone, Welcome to the 131st edition of the Aussie Painting Contractor Magazine.

What a month October has been, another month of training in the Training Centre, with prepare surfaces, both uncoated and previously coated, using tools and equipment, handling materials, applying paint by spray and applying texture by brush, roll and spray. It’s fabulous seeing the centre used most days.

I almost forgot about my trip in the first week of the month to Central Queensland where I spent time training over a dozen students, and my visits to train more apprentices in Stanthorpe and Toowoomba.

This month we squeezed in 2 Try a Trade Days with schools attending and us getting 4 potential apprentices. 2 school based and 2 finishing in the next couple of weeks looking for full time.

The I Got brushed Program is completing with another starting in Early December. We will have more about both of those next month.

In the last month, we have assisted nearly a dozen business owners with people trialing for apprenticeships. If you are considering putting on an apprentice let us know and we might be able to help.

'Til next month, Happy Painting!!

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

CONTRIBUTORS • Ann Kayis-Kumar • Helen Kay • Jim Baker • Kayleen Manwaring • Leo Babauta • Libby Sander • Nigel Gorman • Robert Bauman • Sandra Price • Vanessa Petch

EDITOR Nigel Gorman

GRAPHIC DESIGNER J. Anne Delgado

AUSTRALIA'S ONLINE PAINT EXPERT

Advertise with us...

1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com

Contents ultimate guide to improving 06 The BUSINESS CASH FLOW

your employees 30 Are looking for another job?

11 How Simplicity Reveals Life 12

Unpacking the Changes in Australia’s Unfair Contract Terms (UCT) Regime

16

11 Important Things To Know About the QBCC

Reconciliations keep 33 Why your Business on Track

19

Why do I suddenly owe tax this year?

Powerful Uncertainty 36 ACHALLENGE

It could be because the Low and Middle Income Tax offset is gone, forever

22 The Importance of Training (Part 7) 38 26 Technology and AI

Stress levels in Australian workplaces among the highest as we battle constant interruptions and irritating colleagues

42 Industry Idiots 43 Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you September incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

The ultimate guide to improving

BUSINESS CASH FLOW

In the realm of business, the vitality that keeps your operations running smoothly is none other than cash flow. Whether you’re navigating the early stages of a startup or steering an established enterprise, the task of sustaining a consistent cash flow can pose quite a formidable challenge. However, even small adjustments have the potential to wield a profound impact on your cash flow and overall revenue.

So, let’s delve into some practical tactics you can employ to enhance your cash flow.

Accelerate Payment Receipts

The expeditious receipt of payments plays a pivotal role in elevating your cash flow. If your customary practice involves invoicing your clients, contemplate providing them with an incentive to settle their bills sooner than the conventional 30-day payment window. A modest discount of 5% might entice them to clear their dues within a 10-day timeframe.

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Prioritize Invoicing

Invoicing should be ingrained in your daily business routine. Embracing a practice of invoicing on the same day or the following day ensures that you stay on top of your accounts receivable. Additionally, consider supplementing traditional mail with emailbased invoicing.

For those clients who persistently delay payments, don’t hesitate to send them regular reminders.

Establish a Merchant Payment Account

Enabling your customers to make payments via credit or debit cards can significantly expedite the payment process. Merchant accounts facilitate the swift processing of sales and service payments, often providing next-day access to funds. Contemplate setting up an online payment portal on your website or enrolling in a reputable third-party platform like PayPal.

Leverage Business Credit Cards

Employing business credit cards for supplier payments or purchases can also contribute to effective cash flow management. Most credit cards offer a grace period, sometimes extending up to 25 days, allowing you to settle the statement balance without incurring interest charges. Some even feature cash-back rewards.

Optimize Idle Cash

If you find yourself with surplus funds, avoid letting them languish idly. Consider directing these funds towards a short-term, high-interest savings account tailored for your business or contemplate reducing your line of credit. These alternatives can enable you to earn competitive interest rates while ensuring accessibility to your funds.

accounts receivable processes and expedite customer payments. While this may entail an initial cost, the long-term benefits it offers in terms of cash flow enhancement are substantial.

Bear in mind, in the business arena, cash flow reigns supreme. Implement these straightforward yet potent strategies to sustain a favorable cash flow and steer your business toward success.

Require assistance in managing your cash flow?

Reach out to us without delay.

Embrace Modern Technology

Investing in contemporary bookkeeping software or invoice management services can streamline your

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2023 September Issue | 9

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How Simplicity

REVEALS LIFE

This morning I was eating a really simple meal, with minimal seasoning, and I savored its deliciousness.

When I remove the extraneous, it gives me a chance to savor what’s left. The flavors can really shine.

Often I go the opposite way: I eat too much, too quickly, with an overwhelming number of flavors.

And I barely taste any of it.

And my experience of this is that life is really revealed when I have less in front of me.

This is how I sometimes experience life: I do so much, so quickly, and have an overwhelming amount of stuff going on. So much so that it’s hard to really experience any of it fully.

When I simplify, it’s not necessarily about getting rid of stuff — it’s about letting fewer things really be experienced: • When I have fewer things, I can really use those things fully, appreciating them fully.

• When I have fewer things to do, I can really pour myself into those tasks, and really experience them.

• When I engage with fewer things online, I can engage with them more thoughtfully.

That’s not an argument for always having or doing less. There’s something to be said for embracing the fullness of life. Instead, it’s a noticing of what happens when I slow down, when I do less, when I fully experience things instead of rushing through them so I can do more.

The fullness of life is often revealed in simplicity.

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Leo Babauta ZEN HABITS

2023 November Issue | 11

Unpacking the Changes in Australia’s

Unfair Contract Terms (UCT) Regime So what exactly are the changes in Australia’s Unfair Contract Terms. From 10 November 2023, Australia will see a substantial expansion in the scope of contracts covered by the unfair contract terms (UCT) provisions. Even businesses that once felt exempted from the UCT regime need to reassess their standing.

Furthermore, the consequences of non-adherence have grown considerably in terms of penalties.

As we move closer to the activation date, it’s imperative for businesses in Australia to revisit their standard agreements utilized with customers and suppliers. This will ensure they align with the revamped UCT provisions.

A Quick Dive into the Background

On 9 November 2022, the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (the Act) was ratified, ushering in numerous alterations to the Competition and Consumer Act 2010 (Cth) (CCA) and the UCT framework.

The majority of the alterations to the UCT regulations set by the Act are transitioning and will be in full effect from 10 November 2023. Consequently,

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the revised UCT provisions will pertain to standard consumer and small business contracts that are: (i) formulated from 10 November 2023 onwards; or (ii) renewed or adjusted post 10 November 2023.

Unpacking the Revamped ‘Unfair Contract Terms’ Provisions The amendments ushered in by the Act echo the Australian Competition and Consumer Commission’s (ACCC) amplified emphasis on safeguarding consumers and small-scale businesses. The primary changes encompass: Escalation in Penalties: The Act amped up the highest penalty for CCA breaches. This includes: – For corporations: the greater of: (i) $50 million; (ii) x3 the value of the benefit obtained and that is reasonably attributable to the breach, if that can be determined; and (iii) if the value of the benefit cannot be determined, 30% of adjusted turnover during the breach turnover period (i.e., over the period the breach occurred, with a minimum of 12 months); and – For individuals: A whopping $2,500,000.

UCTs are illegal and attract pecuniary penalties: Previously, UCTs, when deemed ‘unfair’ by a Court, were simply considered null and void. Starting 10 November 2023, there will be restrictions against crafting a contract containing a UCT (if proposed by the same person) and against invoking or leaning on such a UCT. Every UCT in an agreement is viewed as a distinct violation. For the first time since its introduction, breaching this can result in hefty financial penalties.

Expanded Definition for Small Businesses: The ambit of the UCT framework now extends to standard agreements with consumers and smaller businesses.

As of 10 November 2023, a ‘small business’ will be redefined from one with under 20 staff members to one that either employs fewer than 100 individuals or had a turnover of less than $10 million the previous financial year. This broadens the range of businesses under the protective umbrella of the UCT provisions.

Consequently, local businesses transacting with suppliers via standard contracts must recognize that suppliers with a team of under 100 are now categorized as ‘small businesses’ as per the UCT terms.

Redefining ‘Standard Form Contracts: The Act now provides clarity on how a Court should evaluate ‘standard form contracts’. From 10 November 2023, certain considerations, like minor negotiation opportunities, are excluded from the Court’s purview.

Those who previously designated contracts as not being ‘standard form’ based on these criteria will have to reassess their contracts.

Empowered Judiciary: The Act equips Courts with heightened authority, including injunction capabilities and the power to issue corrective orders for losses or potential damages due to the UCT.

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Defining an Unfair Term While the Act introduces numerous changes, it doesn’t alter the criterion for ‘unfairness’. Briefly, an unfair term in a standard consumer or small business agreement is one that: – Skews the balance of rights and obligations of involved parties.

– Isn’t essential for the legitimate interests of the benefiting party.

– Would result in financial or other disadvantages if invoked.

This definition isn’t one-size-fits-all. The interpretation will vary based on unique commercial contexts.

Moreover, the CCA doesn’t enumerate “unfair” terms, but it does offer an extensive list of potentially unfair clauses. Every term’s classification as ‘unfair’ is a case-specific judgment.

Charting the Path Ahead Post 10 November 2023, businesses employing standard contracts will face elevated risks. The Act’s double-edged sword both widens the UCT’s scope and introduces heftier penalties and enforcement measures for non-compliance. Thus, businesses must promptly review all their standard contracts to ensure alignment ahead of the November deadline.

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For every template contract utilized, businesses should evaluate: – Its classification as a ‘standard form contract’ in light of the Act’s new guidelines.

– Its applicability to consumers or to clients/ suppliers with less than 100 employees or an annual revenue below $10 million.

– The presence of any UCTs.

Get in Touch We can review your standard documents and determine if any clauses need amending so as not to fall foul of the new UCT regime. Click here for a free call.

Disclaimer: This blog post is intended for informational

purposes only and should not be considered legal advice.

Consult with a qualified commercial lawyer for personalised advice related to your specific circumstances.

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Helen Kay

If you require any assistance with your business legals or any other commercial legal issue, please do not hesitate to contact me.

P: 1300 064 707 | E: helen.kay@riselegal.com.au

2023 November Issue | 15

11 Important Things To Know

About the QBCC The Queensland Building and Construction Commission (QBCC) has specific requirements for financial reporting through the MFR (Minimum Financial Requirements) framework that licence holders need to comply with. As a licensee holding a contractor type licence, you need to demonstrate through financial reporting that your business can operate sustainably.

3. Working Capital: Adequate working capital is important. QBCC may require evidence that your company has sufficient working capital to meet its operational needs.

Besides that there are several other matters the QBCC is concerned with. Here is a run down on all things the QBCC is keeping an eye on:

5. Licensing Fees: For a company with revenue up to $200,000 p.a. the total application fee is $724.04 in SC1 (Not available to builders). You can renew your SC1 licence for 1 year at a cost of $313.50, or renew for 3 years at a reduced cost of $799.45.

1. Financial Statements: QBCC typically requires the submission of audited financial statements. Ensure that your financial statements are prepared in accordance with relevant accounting standards. Statements should include the balance sheet, profit and loss statement, and cash flow statement.

2. Net Tangible Assets (NTA): QBCC may have specific requirements regarding Net Tangible Assets. NTA is a measure of a company's total assets minus its intangible assets and liabilities. Meeting the NTA requirements is crucial for demonstrating financial stability.

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4. Cash Flow: QBCC may assess your company's cash flow to ensure it can meet financial obligations as they become due.

For more detailed information about licensing fees and eligibility requirements for painters and decorators visit the QBCC website.

6. Licence Types: A contractor-type licence is a business licence issued to a company or an individual (sole trader, partner or trustee). This licence allows the individual or company to enter into contracts directly with a property owner, builder, principal contractor or developer.

7. Insurance: Ensure that your company has the necessary insurance coverage. QBCC may require evidence of insurance compliance.

8. Timely Reporting: Adherence to reporting deadlines is critical. Failure to submit required reports on time may lead to penalties or other consequences.

The purpose of providing financial reporting to the QBCC is to demonstrate that a licensee holding a contractor-type licence can operate sustainably in their business at all times.

9. Independent Audit: QBCC may require an independent audit of your financial statements. Make sure to engage a qualified auditor to conduct the audit.

10. Compliance with QBCC Policies: Familiarize yourself with QBCC's specific policies and guidelines regarding MFR reporting. Compliance with these policies is essential.

11. Regular Monitoring: Regularly monitor your financial position to ensure ongoing compliance with QBCC's MFR requirements.

It's crucial to consult with QBCC directly or seek legal and financial advice to ensure that you are fully aware of and compliant with the specific MFR reporting requirements applicable to your situation, as these can be subject to change.

Consider seeking professional advice from accountants, auditors, or consultants who are familiar with QBCC's requirements. They can provide guidance on meeting MFR obligations.

Don’t risk losing your licence over a technicality. As accountants specialising in tradies and construction businesses Straight Talk Accounting & Tax are happy to help you sort out any reporting issues you may have encountered with the QBCC. Feel free to arrange a FREE No-Obligation Meeting. Call my office on 07 3399 8844, or just visit our website at www.straighttalkat.com.au

Copyright © 2023 Robert Bauman.

2023 November Issue | 17

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Why do I suddenly owe tax this year?

It could be because the Low and Middle Income Tax offset is gone, forever Why do I suddenly owe tax this year?

This is one of the most Googled questions in Australia right now. And rightly so.

Ever since Australia’s transition to self-assessment for income tax returns, we have been primed to expect an annual refund.

That’s by design. Thinking we will get a refund acts as an incentive to get us to fill in the form.

But it’s actually not a good thing to get a refund. Bear with me. Refunds mean the Tax Office has been holding onto our money.

Nevertheless, many of us would really, really like a big refund this year.

Abysmal wage growth, rapidly rising living costs, a housing affordability crisis and the fastest tightening of interest rates in 30 years have been putting us under the most financial pressure in years, and (given known associations) quite likely harming our mental health.

However, two changes this year mean our refunds are likely to either be much smaller than before, or to vanish altogether and be replaced with tax bills.

One of the changes is to rules governing how working-from-home expenses are calculated. You can read about it here.

The other, the focus of this piece – and it applies to many more people – is the end of the A$11 billion Low and Middle Income Tax Offset, known as LMITO.

LMITO was for higher rather than lower earners Worth up to $1,500 per taxpayer in 2022, and paid or part-paid to taxpayers who earned between $37,000 and $126,000, LMITO was introduced in 2018 as a temporary measure by then treasurer Scott Morrison to “increase disposable incomes to help relieve household budget pressures”.

Taxpayers earning between $48,000 and $90,000 got the maximum, which began at $1,080 in 2019 and climbed to $1,500 in 2022.

“Low and Middle Income Tax Offset” was a misnomer.

The benefit wasn’t available to really low earners (who were eligible for a separate offset) and it was available to people who earned a good deal more than middle incomes.

The median (middle) income in tax returns filed for 2020-21 was $62,600.

A taxpayer on $90,000 and eligible for full LMITO would be in the top 28% of earners. A taxpayer on $126,000 and partly eligible would be in the top 13%.

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‘Temporary’, then extended, then extended again Morrison always intended LMITO to be temporary because it was to be replaced in 2022 by measures in Stage 2 of his tax cut plan that would have the same effect.

But in the 2020 budget, Treasurer Josh Frydenberg brought forward Stage 2 from 2022 to 2020 and kept LMITO in place to provide an “additional benefit”.

In 2021 Frydenberg extended LMITO for yet another year to give recipients what he called a “further benefit” that would help secure the economic recovery.

In 2022 Frydenberg stopped. The benefit for 2021-22 to be paid out in 2022 would be the last, although it would be boosted from $1,080 to $1,500 as a “temporary, targeted and responsible way to reduce cost of living pressures”.

Now its gone, tax bills are $1,500 higher The benefit’s design, being paid out at the end of each tax year rather than through the year, meant that when it went, it would be noticed.

If there would have otherwise been a tax bill, it would be up to $1,500 bigger. If there would have otherwise been a tax refund it would be up to $1,500 smaller – enough to turn many tax refunds into tax bills.

That’s what’s happening now. More than 10 million Australians received LMITO in its final year, most of them the full LMITO. That means millions who have submitted their forms this year are getting bills in place of refunds, and millions more are getting refunds that are smaller or bills that are bigger.

Treasurer Jim Chalmers could have saved the benefit – in April Shadow Treasurer Angus Taylor accused him of trying to hide a decision to axe it “under the cover of Easter”.

But the decision to end it was taken a year earlier in Frydenberg’s budget for the 2022-23 tax year, meaning it is only now being felt.

A flawed idea, at odds with advice Offsets aren’t an ideal way to deliver tax support.

Those that are means-tested (like LMITO) distort effective marginal tax rates. Those that are paid out at the end of each tax year (like LMITO) withhold support at the time it is needed.

The 2009 Henry Tax Review wanted most offsets removed and replaced with either direct payments or changes to the tax scales.

Its preferred model was a fairly flat tax scale with a high tax-free threshold of $25,000, meaning an extra 10% of taxpayers would pay no tax. At today’s wage rates that would be a tax-free threshold of $36,000, freeing 1.3 million taxpayers from the need to pay tax.

Refunds up to $1,5000 smaller. Shutterstock

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Where to from here?

Assuming your income stays roughly the same, your refund this year is likely to be lower than it has been over the past few years or to turn into a tax bill.

But please, don’t let this deter you from doing your tax.

If you’re behind, it might seem daunting to get back on track, especially if you think you’ll have to pay extra tax this year instead of getting a refund.

But not lodging your returns will backfire. Like avoiding a trip to the doctor to get a skin check, the longer you wait, the more the problem will grow.

Reaching out to the Tax Office is the key because they have tools to support you, including payment plans.

Getting in touch rather than waiting for the Tax Office to chase you shows you are willing to comply.

Ultimately, being up to date will save you fines, interest and penalties.

It can help to reach out to a registered tax agent if you need help to get back on track.

If you are one of the 80,000 Australians in serious hardship who need but can’t afford professional help to complete and lodge overdue returns, the government-funded National Tax Clinics Program can help with pro bono tax advice.

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Ann Kayis-Kumar

Associate Professor, UNSW Sydney Don’t get behind on your tax. Shutterstock

2023 September Issue | 21

The Importance of

TRAINING Part 7 In this seventh instalment of our discussion on the importance of training, we find ourselves in a rather unusual situation. This month, it's become a recurring theme to hear individuals confidently proclaim, "I know how to do that, I can do it, and I do it all the time." However, as a trainer, I've learned that this is often just the tip of the iceberg. It prompts me to pose a few simple questions to test their knowledge.

The questions I ask are not intended to stump or embarrass anyone but to emphasize a vital point. So, here goes: Do you know what HVLP stands for? Can you explain the function of a needle in your equipment? What about an air-cap? At this juncture, the expressions on their faces typically shift from assuredness to confusion.

For those unfamiliar, I'm referring to the process of applying paint by spray. It never ceases to amaze me how individuals, based on their familiarity with one aspect, believe they possess comprehensive expertise in the field. However, in the realm of painting and decorating, each unit comprises several components and techniques that often go unnoticed. Simply being able to operate an airless gun, for instance, does not equate to being proficient in all facets of the trade. Other techniques, such as conventional spray and HVLP (High Volume Low Pressure) Spray Guns, are equally essential skills that some painters may encounter in their careers.

As part of our comprehensive training package, we require every participant to demonstrate their ability to spray a minimum of 50 square meters of plaster and masonry surfaces. Additionally, they must apply paint using both high volume, low-pressure (HVLP) spray and air-assisted airless spray techniques on surfaces totaling at least six square meters. To ensure a wellrounded education, we also mandate the application of paint by spray on both sides of a standard-sized door, using both acrylic and enamel paints.

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Our rationale for incorporating this variety into our training regimen is simple. We want our apprentices to be versatile and capable of tackling a wide range of painting tasks. Whether it's using HVLP spray guns, airless equipment, or more traditional methods, we believe that a well-rounded painter is not only more skilled but also more adaptable to diverse job requirements.

If your training provider isn't offering this kind of comprehensive training, it's essential to reconsider whether you are truly setting your apprentices up for success in the painting and decorating industry.

The ability to apply paint efficiently and effectively is not a one-size-fits-all skill. Different projects may demand different techniques, and a versatile skillset is a valuable asset for any painter.

In conclusion, it's crucial to acknowledge that expertise in painting and decorating goes far beyond the basics.

Confidence in one aspect of the trade should not be mistaken for mastery of the entire field. Training that encompasses a wide range of techniques and equipment ensures that apprentices are well-prepared for the challenges they may encounter throughout their careers. So, the next time someone confidently claims, "I know how to do that," remember that there's often much more to learn and explore in the world of painting and decorating.

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Nigel Gorman

nigel@aussiepaintersnetwork.com.au

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Technology and AI I can’t help feel like a relic when I look back on my early experiences with technology. My first journey began with a Commodore 64 that boasted a mere 64 kilobytes of RAM. To add to that sense of antiquity, my first mobile phone was a Motorola ‘Brick’ measuring a hefty 27cm x 20cm x 0.70cm, with no memory at all. It’s battery alone was four times the size of a typical mobile phone. Reflecting on this, I’m astounded by the vast amount of information that modern devices can store and access.

It's hard to fathom, but in those days seeking business-related insights for painters was virtually impossible. The mere thought of reaching out to fellow painters was not an option as there was a fear they might steal your ideas. However, two decades into my journey in the industry, the idea of compiling a book based on my past experience began to take shape. It took months to assemble the content, followed by several more months of rigorous editing and proofreading. In 2007, I took the initiative to selfpublish ‘How To Become A Really Successful Painter’.

As far as I knew at the time, it was the sole resource available that exclusively delved into the operations of a painting business. The thrilling part was that I garnered full support from Dulux Australia, Dulux New Zealand and, the Queensland Master Painters Association.

However, in today’s tech-savvy era, thanks to the marvels of Artificial Intelligence (AI), obtaining information has become as simple as running a Google search. For this specific instance, I utilized ‘Chat GPT’ and entered the enquiry, ‘Provide me with ideas on managing a house painting business’. In a matter of seconds, the following information materialized.

• Business Plan: Begin by creating a comprehensive business plan.

Outline your business goals, target market, pricing strategy, and financial projections.

• Legal Requirements: Register your business, obtain the necessary permits and licenses, and choose a legal structure (e.g., sole proprietorship, LLC, corporation).

• Insurance: Purchase liability insurance to protect yourself and your business in case of accidents or property damage.

• Skill and Training: Ensure that you and your team have the required painting skills and knowledge of different paint types, techniques, and equipment.

• Equipment and Supplies: Invest in high-quality painting tools and materials, including brushes, rollers, drop cloths, ladders, and various paints and finishes.

• Marketing: Develop a strong online and offline marketing strategy. Create a professional website, optimize it for local search, and establish a presence on social media. Utilize traditional marketing methods such as flyers, business cards, and local advertising.

• Target Market: You can focus on residential clients, commercial clients, or a combination of both.

• Pricing: Calculate your pricing structure by considering the cost of materials, labour, overhead, and desired profit margin. Be competitive but ensure profitability.

• Estimation and Quotes: Develop a system for estimating jobs accurately. Provide clear, detailed quotes to potential clients.

• Contracts: Use contracts that outline the scope of work, payment terms, and other important details. Always have a signed agreement before starting a project • Customer Service: Offer exceptional customer service to build a good reputation and secure repeat business and referrals.

• Networking: Build relationships with local contractors, real estate agents, and property managers who can refer clients to your business.

• Safety: Prioritize safety for both your crew and clients. Ensure compliance with safety regulations and provide necessary safety equipment.

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• Quality Assurance: Maintain a high standard of workmanship. Satisfied customers are more likely to recommend your services.

• Accounting and Finances: Keep accurate financial records and manage your business finances effectively. Consider using accounting software.

• Scheduling and Time Management: Create a well-organized schedule to manage multiple projects efficiently and meet deadlines.

• Seasonal Considerations: Plan for seasonal variations in demand. For instance, winter may be a slower season for exterior painting but an opportunity for interior work.

• Growth and Scaling: As your business grows, consider hiring more employees, expanding services, or targeting new markets.

• Continuous Learning: Stay updated on industry trends, new products, and painting techniques. Attend workshops and training sessions as needed.

• Reviews and Feedback: Encourage customers to leave reviews and testimonials on your website and social media platforms.

• Environmental Responsibility: Consider eco-friendly paint options and disposal methods to appeal to environmentally conscious customers.

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• Technology: Utilize project management software to streamline your business operations, scheduling, and client communication.

Remember that the key to a successful house painting business is not just about providing quality work but also about building a strong reputation, excellent customer service, and effective marketing. Consistency and professionalism are essential to long-term success.

In a sense, I’m grateful that ‘AI’ wasn’t readily accessible for information during the time I was writing my book otherwise, I might not have sold 2,700 copies of it. My expertise and insights were the product of hands-on learning through trial and error, attending seminars and conferences, actively engaging in discussions, listening and asking questions.

If you need any advice and want to talk to a person and not to a computer, feel free to get in touch with me.

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Jim Baker

www.mytools4business.com

2023 September Issue | 29

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Are your employees looking for another job?

As we come to the end of the year, many employees will start reassessing their current position and start looking forward to next year and what opportunities may lay ahead for them.

If you haven’t been communicating a development plan for them, then they’ll start to look elsewhere.

One of the biggest motivators for all employees is opportunities for advancement.

Start talking with your key employees now about their development opportunities. Retention and development is a highly effective strategy in growing your business (and a lot more cost effective then recruiting a replacement!). See our post on why it pays to retain and develop to read more about how much staff turnover is costing your business.

HR Maximised uses the Career Monitor program to proactively manage retention. The Career Monitor provides clear guidelines on how to retain individual employees and provides an employee a clear plan on how they can contribute to the business. It is a powerful and non-threatening way for employees to own their career. Career Monitor can also be used for probation reviews, exit interviews, key employee retention programs and annual survey as part of a HR Plan.

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Vanessa Petch

www.hrmaximised.com.au

2023 November Issue | 31

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Why Reconciliations keep your Business on Track As a small business owner, you’re likely already aware of the importance of keeping your finances in order.

Financial management goes deeper than paying your bills on time and collecting on invoices (although those are also important). It involves regularly checking up on your financial situation to make sure your accounts are in order, your records are up-to-date, and you’re spending within your budget.

Among those activities, bank reconciliation plays a vital role in keeping your finances–and your business–on track.

Here’s what you should know about financial reconciliation and how it can help your business.

What is a Financial Reconciliation?

Financial reconciliation is a process of ensuring your financial records are consistent and accurate.

Basically, when you conduct a financial reconciliation, you review financial statements and compare them with your bank statements, credit card statements, vendor statements, and other relevant financial records, such as invoices.

know exactly how much money you have and how much is moving into and out of your business, and you can make informed financial decisions.

As you do this, you’ll look for errors or discrepancies for example if a payment appears on your bank statement but not your accounting records, or if the payments show as being for different amounts on different records. When you conduct a financial reconciliation, you want to make sure that the money in your bank account matches the money your financial documents show you should have.

Bank reconciliation involves your business’s bank statement to your accounting records to ensure that all transactions have been recorded correctly. You’re looking here to make sure that the bottom line of your bank statement matches your bank account balance.

If not, you’ll want to determine why. Is there an automatic withdrawal that hasn’t yet been posted to your account? If so, you need to be aware of it to prevent yourself from over-drawing on your account.

Discrepancies need to be addressed or you’ll wind up with financial information that isn’t accurate, which affects your cash flow and your ability to make financial decisions. If the discrepancy involves an ongoing payment–to you or to a vendor–catching it early could save you a lot of money.

The goal of financial reconciliation is to ensure all financial transactions are recorded accurately and thoroughly in your accounting system. That way, you

Types of financial reconciliation Every business has different reconciliation needs, depending on how big it is and how many and what types of transactions it has.

Credit card reconciliation involves reconciling your business’s credit card statements with your accounting records to ensure that all charges have been recorded accurately. This is similar to a bank reconciliation in that you need to know exactly how much you’ve spent on your credit card–including pending transactions–so you know how much you have available to you.

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You can also conduct vendor statement reconciliation, where you examine your vendor statements against your accounting records to ensure all invoices have been paid and recorded accurately. This can prevent any errors in paying your vendors.

If you have two units of business or more–such as divisions, subsidiaries, or franchises, you’ll need to conduct intercompany reconciliation. This is where you compare financial records between two or more companies to ensure transactions are recorded accurately and consistently.

Why you need financial reconciliation Financial reconciliation is a vital tool that helps you manage your business more effectively. It ensures your financial records are accurate, complete, and up-to-date. This prevents errors or discrepancies that could lead to financial losses, or legal or compliance issues.

depending on the size of your business, and you may conduct different types of reconciliation on different schedules, depending on your unique business needs.

Step 4: Ensure all financial data is easily accessible to those who need it. Each time you conduct a financial reconciliation, make sure you have all relevant documentation and data needed. Cloud accounting software can help you manage your reconciliation.

Step 5: Conduct the reconciliation: Compare your financial statements to your accounting records to identify discrepancies or errors.

Step 6: Investigate and resolve discrepancies: If you find errors or inconsistencies, look into them and do what you can to resolve them. You may have to hunt down additional paperwork, contact vendors to discuss payments, or reach out to your bank or credit card issuer.

It can also help identify any fraudulent activity or transactions you did not approve, protecting you against fraud and lessening the risk of financial losses. If you have numerous transactions that are difficult to keep track of, regular financial reconciliation prevents accidental overspending or missed payments that could ultimately affect your relationships with vendors.

As mentioned above, many businesses are required to comply with financial regulations and reporting requirements. Financial reconciliation helps ensure that your business is in compliance with these requirements. If you’re not compliant, you can take measures to address the issue quickly, before it gets out of control.

How to conduct financial reconciliation If you’re looking to establish a solid, repeatable process, these are a few steps you can take: Step 1: Identify what types of financial reconciliation you need to perform. Is it Bank, credit card, loans, suppliers ?

Step 2: Establish roles and responsibilities for each team member involved in the process. Make sure everyone knows and understands what they are responsible for and when.

Step 3: Create a schedule for conducting financial reconciliation on a regular basis. This may vary

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Final thoughts As a business owner, you’ll need to make vital decisions to move your business forward. Accurate financial records enable you to make those decisions based on your cash flow and current financial standing.

If you have questions about financial reconciliation or other important financial aspects of your business, please reach out to us. We’re always happy to answer questions and show you how we can make your business management easier. Book a call with Sandra HERE.

Sandra Price

tradiebookkeepingsolutions.com.au

2023 November Issue | 35

A Powerful Uncertainty

CHALLENGE A year ago, my team & I started a grand experiment in our Fearless Living Academy, designed to create the best training possible for learning to face and deal with uncertainty in our lives, especially around habits and purpose work.

We call it the Uncertainty Challenge.

It’s a 4-week challenge that we’ve run 12 times so far, with astounding results. Seriously, I didn’t know what to expect, but people have been doing things in these challenges that’s just blowing me away.

Results like: • • • • • •

Finally stopped procrastinating Made more progress on a project in 4 weeks than in a year leading up to the challenge Started marketing their creations after resisting for a long time Stuck to habits like exercise and healthy eating, for the first time ever Created morning routines that set up their day for success More lightness and less judgment in creating their art

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And much more. I’m not saying that everyone was “perfect” at getting the results they wanted … but perfection was never the goal. They learned a lot about themselves, they worked with their sticking points, and they’ve created some amazing things.

Why did it work so well? There are some things we’ve put into the structure that set people up for success: •

•

Clarity: The first week of the challenge, we ask people to set a clear target for themselves for the challenge. This act alone is responsible for a ton of progress, because most people aren’t setting clear targets for themselves in most areas of their lives. It makes a huge difference if you choose where you’re aiming for.

Accountability & logging: We have people logging what they do each day, which gives some accountability but also a way to see your progress and notice where you’re getting stuck.

•

•

•

Community: Challenge members are a part of a team of about 15-20 people, where you can share progress and struggles, get support, and encourage each other. Don’t underestimate the power of community for a challenge like this.

Drills: We’ve created practice drills each week that help people to get better at their weaknesses, from facing fear and uncertainty to getting clear on their targets. These have been proving to be highly effective.

Length of the challenge: The challenge is 4 weeks, which is about how long people are able to focus on something purposeful. For many people, that kind of focus is a stretch, so you’re expanding your capability. Others will say it’s too short, which is because they weren’t able to make the progress they were hoping for. That’s OK — we hold a new challenge each month, so you can keep going!

That’s the structure we’ve created, and it’s powerful.

I’m really excited because we’ve been testing this in private for a year now, and it’s time to bring it out to a wider group of people who want to change habits and do something meaningful in the world.

If that’s you, come join us!

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Reflections: We ask people to periodically reflect on the progress they’re making, notice their sticking points, and draw learnings from their practice.

This makes the most of the learning opportunity.

Leo Babauta ZEN HABITS

2023 September Issue | 37

Stress levels in Australian workplaces among the highest as we battle constant interruptions and irritating colleagues As more companies mandate the amount of time to be spent in the office, employee stress levels are on the rise.

A recent study found 34% of employees reported lower mental health levels compared to six months ago. Alarmingly, 37% also reported decreased levels of engagement and sense of belonging.

So why might the return to the office be increasing employee stress? Research indicates a combination of commuting, cost of living pressures, noisy openplan offices, work culture, interruptions, decreased autonomy and coworker relations are contributing to workers feeling more stressed.

In Gallup’s State of the Global Workplace 2023 Report, the US and Canada region along with East Asia tied for the highest level of stress at 52%, and Australia and New Zealand had the second-highest rate at 47%.

These results maintain the record high set in 2021.

And an analysis of 382,000 employee exit interviews found reports of employee burnout have almost doubled in the past year.

The return to the office appears to be a contributing factor with 52% of employees preferring flexible/hybrid work to minimise mental health concerns.

So how might returning to the office be making employees more stressed?

Noisy offices are a significant contributor to stress

As staff have returned to the workplace they have been confronted with the thing employees dislike most about open plan offices, according to research: noise.

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Noise has significant implications for both employee well-being and performance. Our research found relatively moderate levels of open-plan office noise caused a 25% increase in negative mood and a 34% increase in physiological stress.

In addition to making employees more stressed and cranky, noisy open-plan offices reduce performance.

Research shows employees in quieter one-person offices perform 14% better on a cognitive task than employees in open plan offices.

Employees who are monitored while working reported higher levels of feeling they do not matter at their workplace (to their coworkers [32% vs. 17% of those not monitored] or to their employer [36% vs. 22%]), they are not valued (26% vs. 17%), and they are micromanaged (51% vs. 33%).

Commuting is stressful and expensive

The lost time and expense of commuting on top of rising cost of living pressures has been a consistent theme as to why employees don’t want to return to the office five days a week.

The Real Australian Commute Report 2022 surveyed 5,000 Australians revealing the average cost of commuting per day is now $20.

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info@tradiesadvantage.com.au 191 Wynnum Road, Norman Park QLD 4170

2023 September Issue | 39

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According to a recent study published by Fortune, the time Americans spent commuting in 2022 increased by 239 hours, a 20% jump from 2019 figures.

But it’s not just the cost in time and money that is of concern, commuting adds to employee stress. A systematic review and meta-analysis of the relationship between commuting and stress found objective measures of commuting (distance travelled and time spent) were positively associated with strain outcomes, especially perceived stress.

Our coworkers can be part of the problem

Returning to the office is great for social connection and can lead to a range of positive work outcomes. However, our coworkers can also be a source of stress.

During my research, I am frequently told by employees of colleagues who eat offensive smelling foods at their desk, make loud sounds while eating, and conduct animated personal phone calls right next to them. Then there are those who wear sweaty gym gear for the rest of the day after working out at lunchtime.

Most famously perhaps in the annals of annoying colleagues was the case of the employee on a research station in Antarctica who stabbed a coworker who persisted in telling him the endings of books he was planning to read.

Workplace culture remains crucial

Being back in the office brings the culture of the organisation into sharp focus. More than one in four workers (26%) indicate a toxic work culture is negatively impacting their mental health.

Employee stress, under performance and turnover are inevitable if organisations are more focused on tasks or just getting their staff back in for face-time for the sake of it, rather than on results. Similarly, if poor leadership is tolerated and understaffing is the norm, low morale and high turnover are likely to follow.

Well designed workspaces that include acoustic treatment, psychological safety, effective leadership, healthy organisational culture, and work arrangements that support autonomy and employee well-being are crucial to reducing stress and employee turnover.

-----------------------------------------------------------------------------------------Libby (Elizabeth) Sander

MBA Director & Assistant Professor of Organisational Behaviour, Bond Business School, Bond University

2023 November Issue | 41

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IMPORTANT

Contacts

Aussie Painters Network aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating painters.edu.au

Ph. 1300 319 790

Australian Tax Office ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates fairwork.gov.au

Ph. 13 13 94

Australian Building & Construction Commission www.abcc.gov.au

Ph. 1800 003 338

Mates In Construction www.mates.org.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD WorkSafe Victoria SafeWork NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

comcare.gov.au worksafe.act.gov.au worksafe.qld.gov.au www.worksafe.vic.gov.au www.safework.nsw.gov.au www.safework.sa.gov.au commerce.wa.gov.au/WorkSafe/ worksafe.nt.gov.au worksafe.tas.gov.au

1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322

actcancer.org cancercouncil.com.au cancercouncilnt.com.au cancerqld.org.au cancersa.org.au cancervic.org.au cancerwa.asn.au

(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333

Cancer Council Australia ACT NSW NT QLD SA VIC WA

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