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Top accounting trends for 2021

Top accounting trends for 2021

For certain bookkeepers, the difficulties of 2020 are presently the chances of 2021. Here is a portion of the patterns that lie ahead. Everyone inhaled a murmur of help when 2020 was finished. However, actually, 2021 holds its own arrangement of difficulties.

 Best practices of 2020 

Coronavirus seriously upset numerous associations, according to the Accounts NextGen, it is perceived that how COVID-19 set off a chain of danger occasions universally. The co-working approach guaranteed the workers could zero in on controlling customers through troublesome occasions. It is said that 2020 supported that arrangement was principal to progress, both for the firm and the customers of the company.

“The meaning of karma is arrangement meets opportunity. The Accounts NextGen think that it had a critical chance introduced to us as a calling during 2020, and you need to think those who were ready came out well indeed. “Mindfulness. Acting naturally merciful. Having that mental fortitude and grit, being very terrified yet accomplishing something in any case since you must lead individuals in a truly vague climate. “That interfacing and caring is something that is presumably didn’t consider 25 years prior.

Difficulties ahead 

“There is a danger that associations might not have the ability or staff with the correct ranges of abilities to graph the following development part of organizations in the new COVID-typical time.

“As organizations develop their underlying foundations in the advanced space, the labor force should tackle various types of ability and specialized mastery, especially among computerized trained professionals. “By and large, this will require new staff enlistment or the retraining of existing representatives.”

“With another methodology, keeping that energy in this liquid and disengaged climate must be a concentration for us. The Accounts NextGen think dispatching a methodology without getting 300 individuals in a room immediately exhibits that we can keep the energy up. However, it takes responsibility. Initiative responsibility is most likely the primary concern.”

The hazardous business of 2021 

With regards to dealing with the bunch hazard profiles confronting associations in 2021, it is said that hazard the executives should be a common obligation. As per the Accounts NextGen, the companies can’t see hazard the board as simply one more consistent workout. We need to consider it to be an administration device. It is fundamental to get the senior administration ready and set an unmistakable ‘tone from the top’ for hazard the board to be successful and supportable.”

“Another vital component to assemble the establishments of danger the board is to set up an organized danger announcing a system to guarantee that senior chiefs and partners are given the correct degree of danger data to settle on educated choices or to have the option to pose the correct inquiries. “When the danger establishments are set up and stable, associations can ceaselessly smooth out and improve the interaction, for example, setting up early notice hazard checking instruments, for example, key danger markers.

New difficulties will arise, yet so will openings. 

Accounts NextGen explains that for CPAs, that involves seeing how they can utilize their one-of-a-kind abilities to help their organizations and customers outline a way ahead to a monetarily maintainable future during a time of vulnerability.

Victoria offers relief to businesses hit by snap lockdown

Victorian small businesses could be eligible for up to $143 million in support to compensate for stock losses and cancellations caused by the sudden five-day closure of businesses last weekend.

The package, which will be open to about 50,000 Victorian businesses, comes after wide-ranging criticism about the lack of warning of the shutdown ahead of Valentine’s Day and Chinese New Year which left florists and restaurants holding unusable stock.

The lockdown was caused by a breach of hotel quarantine at the Holiday Inn at Melbourne Airport, which grew rapidly and included two infected airport workers. The breach now seems to be under control with Victoria recording the second day of zero community transmission.

Jobs Minister Martin Pakula said the Circuit Breaker Support Package was targeted at “restaurants, florists, confectioners, hairdressers, accommodation providers, musicians, and performers – who incurred costs such as the loss of perishable goods, canceled gigs, and foregone trading”.

“They are the businesses that were most profoundly affected by that lockdown and they are the businesses that we are primarily targeting in this support,” Mr. Pakula said.

The package was negotiated with industry groups and the targeted approach was welcomed by the Victorian Chamber of Commerce and Industry.

VECCI chief Paul Guerra described the amount of support as “enough”.

“It’s not so much about the money. It’s about certainty. How do we make sure that we continue to trade into the future so that we don’t have another snap lockdown like we had last Friday,” Mr. Guerra said.

The chief executive of the Australian Retailers Association, Paul Zahra, said the package would not compensate for all the business losses.

Grants and vouchers

“The recent Victorian lockdown is expected to have cost retailers of both goods and services more than $1 billion in lost revenue, so while the additional support for business is welcome, it won’t offset the significant losses they incurred,” Mr Zahra said.

The package includes a $92 million program that offers businesses in hospitality, food wholesaling, tourism, events and selected retail industries $2000 grants. Businesses with an annual payroll of up to $3 million will be eligible.

A $24.9 million injection to the Licensed Hospitality Venue Fund will give 7500 previous recipients of this grant an automatic one-off $3000 per premises payment.

Accommodation providers who had 10 or fewer cancellations can apply for $2250 per business, while those with more than 10 booking cancellations can apply for $4500.

A $10 million expansion of the Regional Travel Voucher Scheme will also offer 40,000 vouchers worth $200 each for travel in greater Melbourne, and an additional 10,000 vouchers to support travel in regional Victoria.

More than $6 billion in business support has been provided by the state government for firms and sole traders affected by the state’s three lockdowns, funded from a $24.5 billion loan facility.

Five tips on asking for a pay rise in a pandemic

Source: Financial Review

Negotiating your salary can feel uncomfortable, but it doesn’t have to be. We asked the experts for their top tips on how to get a raise.

Asking for a pay rise can be a difficult conversation at the best of times, but the coronavirus pandemic has meant convincing your boss is harder than it has been for years.

The shift to remote work and the current economic climate meant pay rises last year were few and far between, if they were given at all.

The recent resurgence of COVID-19 in NSW, Victoria and now Queensland is a reminder the pandemic is far from over and will continue to loom large for employers this year.

“[For] any conversation with an employer around pay rises, the key thing is to pick your timing,” says workplace expert Michelle Gibbings.

“Many organisations will be struggling, so asking for a pay rise at a time when they’re struggling to keep other employees on could be seen as highly unreasonable.”

Kelly Van Nelson, managing director of human resources company Adecco Group, agrees.

“Since many sectors have been hit hard by COVID-19, it’s critical to do your research before broaching the topic of a salary increase,” she says.

“The key is to undertake an additional layer of research to assess your company’s performance and its macro environment so you can ensure that your request for a wage increase doesn’t come across as out of touch with current economic realities.”

Workers who suddenly find themselves in hot demand in the current market could be the exception to the rule. Mercer’s 2020 remuneration survey reveals January, April and July are the most common salary review months for organisations.

“Understanding the value you offer puts you in a stronger position to be able to negotiate a pay rise,” says Gibbings.

Adam Gregory from LinkedIn says that now more than ever, it is essential to come to the conversation armed with the right information. Professionals need to demonstrate how they add value to the business.

“As we face the challenges of a global pandemic, take an extra moment to consider the situation the business is in as this will ultimately weigh on the decision and the overall success of your salary discussions,” he says.

SEEK Group HR director Kathleen McCudden notes many companies have paused pay rises and staff should think about whether it is appropriate to ask.

“For most people, this is not the year to be asking for a pay rise,” she says. “That said, it may be worthwhile having an open conversation with your manager about the possibility of a pay increase in the future, once things are more certain and the business is showing signs of recovery.”

So if you’re prepared to broach the topic with your boss, what is the best way to ask for a raise?

1. Do your homework

The best way to increase your confidence is to prepare well and do your research. Give your boss plenty of notice that you want to talk about your role and pay, so they also have time to consider options, says McCudden.

Consider talking to recruiters to understand the market for your specific skills and experience.

Asking for a pay rise is like building a business case, Gibbings says.

You will need to define why you deserve one. It could be that your pay is out of kilter with others in the market, or you may be doing something new to generate additional value.

2. Know your worth

Look up salary guides to understand the typical salary range for those in similar positions.

LinkedIn Salary lets workers see how their pay compares with other workers in their industry and role, but be mindful the figures may be from before COVID-19.

“This allows you to get a better understanding of your position and be armed with the right information to put forward a strong case for a pay rise,” says Gregory.

McCudden recommends researching the salary of similar roles to help set realistic expectations for you and your employer.

3. Outline your achievements

Should you decide to ask for a pay increase, speak to mentors in your industry whom you respect and trust to get an honest sense of your knowledge and capabilities.

“Have clear examples to the hand of your achievements throughout the year,” says Van Nelson.

“Once you have a solid sense of these, it becomes easier to ask for a pay rise, especially if you’ve already collected all the supporting documentation necessary – like past performance appraisals or feedback from colleagues and clients.”

Gibbings agrees it is important for workers to understand what they’re offering and how it has changed from the past so they can show why it is reasonable to ask for a raise.

McCudden says managers can be surprisingly far removed from the achievements staff make in their day-to-day role, so it’s important to bring them up to speed.

“Talk them through what your role entails, how you’re delivering above and beyond the requirements, your career ambitions and objectives. This context helps your manager understand how you’re currently performing and where you’re aspiring to be.”

4. Manners go a long way

As with all professional interactions, ensure you remain clear-headed and calm and be sure to send an email recapping what was discussed.

Be prepared to wait as your manager might need time to reflect or consult with others before giving you an answer.

“Usually these types of conversations will take place in stages, so be patient and understanding in relation to this,” McCudden says.

5. Have a plan B

Have a fall-back plan in case you get knocked back.

“Try considering ahead of time what alternatives you’d accept if your employer isn’t able to offer you the pay rise you want,” Van Nelson says.

“A performance-based bonus, additional paid leave, professional training or flexible work arrangements tailored to you are all good options.”

Gregory says it might be worth having a conversation with your boss should your expectations not be met.

“There might be many reasons why the business might not be able to accommodate a pay rise request, particularly during this current economic climate,” he says.

He recommends suggesting a follow-up meeting in six months and setting clear milestones and key performance indicators that can be measured when that meeting rolls around.

If you decide to put your pay rise request on ice, Van Nelson suggests considering using the time to upskill so you are first in the line for a pay rise once the economy stabilises.

The most effective method to make a monetary arrangement

A monetary arrangement can help you assemble abundance over the long run, supporting the assurance of your monetary future. In the event that that seems like a smart thought, it very well may be acceptable to locate a confided in monetary counsel who can help you on this excursion.

According to the data collected by the Accounts NextGen, Australians are progressively perceiving the estimation of monetary exhortation with 27 percent having gotten monetary guidance and 41 percent of us planning to look for the aptitude of a monetary counsel later on.

However, that is not all. 

As per research by the Australian Securities and Investments Commission (ASIC), Australians are looking for monetary guidance for a huge number of reasons, remembering ability for zones they probably won’t have, their admittance to speculations that are elusive, just as their help with assisting with making a monetary arrangement to assemble and ensure riches. A monetary arrangement assists with defining out your future objectives and layouts techniques to help accomplish them.

It’s a method to plan your monetary way to significant occasions, for example, getting ready for a wedding, having a family, putting something aside for a house, or having an agreeable retirement – to give some examples noticed by Accounts NextGen. Notwithstanding why you’re needing one, a monetary arrangement will be distinctive for everybody, contingent upon life stage, needs, or monetary objectives.

Monetary arranging building blocks 

The initial segment of the monetary arranging measure is to locate a monetary guide you’re OK with. A decent spot to begin is the Financial Planning Association of Australia’s (FPA’s) Find a Planner site, which has a scope of various choices in your neighborhood, with their specialization to assist you with picking what’s ideal for you. According to Accounts NextGen, while picking which monetary guide you’d prefer to work with, it’s a smart thought to factor in their ability and expenses, just as references from different customers or tributes on their site.

Beginning the excursion 

Whenever you’ve discovered a monetary counsel you’d prefer to construct a relationship with, plunk down and talk about your objectives, goals, and demeanor to cash. This significant reality discovering activity will give your guide data to assist work with a trip your monetary arrangement. As explained by Accounts NextGen, during the monetary arranging venture, your counselor may offer you guidance on likely speculations, just as approaches to build your super equilibrium when getting ready for retirement. They may likewise help arrange a financial plan or prescribe protection approaches to suit you, and your family’s, requirements.

Since that is a great deal to get past, for your underlying gathering, it’s acceptable to come arranged with essential data, Accounts NextGen giving example, insights concerning your compensation, the superannuation you have just aggregated, just as any obligations or resources you have. In the event that you can, likewise, bring along your month to month financial plan and costs so they have greater permeability of your comings and goings. It’s significant this gathering is likewise a two-path stream of data, so you can pose inquiries, for example,

  • The counselor’s own way of thinking on abundance creation
  • How they will speak with you, and, give you data about how your speculations are performing
  • How and when they will survey your arrangement
  • Any expenses or charges.

Accounts NextGen further explains after this underlying gathering, the counselor may set up an articulation of exhortation, which will incorporate a system for how you might have the option to meet your own objectives and destinations. This will include:

  • A rundown of your current monetary position and your life objectives.
  • A rundown of suggested ventures and clarification for why they have been suggested.
  • Suggested protection approaches
  • Fees and charges you will pay to the counselor.

It’s likewise a smart thought to experience this with your guide so you comprehend the results of tolerating or dismissing their recommendation.

Securing your position 

Part of building up your monetary arrangement is working out how to ensure your resources and your pay sources enroute. This will regularly include taking out various protection arrangements including:

  • Life protection: to secure you and your family on the off chance that you pass on.
  • Total and perpetual disablement protection: which may payout should you endure a physical issue, mishap, or disease that implies you can’t work.
  • Trauma protection: which may give cover should you be not able to work because of conditions, for example, malignancy or cardiovascular failure.
  • Income assurance protection: which may supplant your pay in the event that you can’t work because of sickness or injury.
  • Insurance can help you meet your home loan reimbursements and different commitments in the event that you endure a mishap or ailment, or ensure you and your family on the off chance that you can’t work.

It’s imperative to think about the correct cover for you, your family, and your conditions as a component of your monetary arrangement.

Key contemplations 

According to Accounts NextGen, It’s not difficult to accept you needn’t bother with a monetary arrangement since you don’t yet have generous riches or resources, or, even on the grounds that you are excessively youthful. However, the sooner you begin assuming responsibility for your abundance, the more certain you will feel about your future and the monetary advances you need to take to arrive.

Set your monetary information on today in motion for later

As the reports collected by Accounts NextGen explains that the Coronavirus has been a driver of extraordinary change. From the manner in which we work to the way we live – all that we once knew as natural is currently unique, and that incorporates how many centers we provide for our regular funds.

Our individual budgets have borne a significant part of the brunt of the pandemic – be it our super, reserve funds, speculations, protection, or obligations. Therefore, we’ve learned significant exercises about the significance of being monetarily ready for delayed times of vulnerability and disturbance. Let us start on seven different ways you can get on top of, comprehend, and deal with your funds today, to help you live your best monetary future.

  1. Have an individual spending plan 

Having an individual spending plan can help you better see how much cash you have now, the amount you should put something aside for the future, and the Accounts NextGen says that the amount you may have the option to set aside for crises. With the steady following, you’ll have the option to see where you go through your cash, and distinguish territories where you may either choose to scale back or have some left finished.

  1. Consider a just-in-case account 

As indicated by moneysmart.gov.au, having a rainy day account can assist with taking care of pressing or sudden expenses on account of a monetary setback. The Accounts NextGen says that it’s likewise a smart thought to routinely audit your fundamental family unit consumption and perceive how it changes over the long run, either for all time or briefly.

  1. Keep on top of the expansion 

Expansion essentially implies that the normal cost of merchandise and enterprises for the most part increments over the long run, that is, it’s probably going to be more costly to purchase something in a couple of years, than it is to get it now and that what is summarized by Accounts NextGen.

  1. Know the contrast among straightforward and accumulated dividends 

Knowing there could be a significant contrast in revenue – either charged or procured – relying upon whether it’s determined on a basic or accumulate premise, could help you settle on more educated choices when assuming obligation or making a speculation. Here’s the manner by which they contrast that is set among straightforward and accumulated dividends that are characterized by Accounts NextGen.

  1. Pay attention to superannuation at each age 

Accounts NextGen explains that since the COVID-19 pandemic hit, superannuation has appeared to assume a basic part in our individual accounting records, helping as numerous as 2.5 million Australians encountering monetary hardships. It stays perhaps the most assessment successful vehicle for putting something aside for retirement, and given it’s a venture planned to traverse many years, it merits paying attention to at each age to guarantee you’re on target to meet your retirement goals.

  1. Is it true that you are qualified for Government’s co-commitment to conspire? 

As explained by Accounts NextGen, this is intended to help qualified people put something aside for retirement when they make an individual super commitment, where the public authority will coordinate the commitment to a specific breaking point. Indeed, even a little, progressing commitment can after some time, make an alternate to your general retirement balance.

  1. Ensure yourself and your family 

Coronavirus has surely indicated that unforeseen can occur. There are straightforward things you could consider today to help secure the monetary future for your friends and family in the event that anything ought to happen to you, including disaster protection, designating recipients, and having a legitimate Will, explained by Accounts NextGen.

Looking forward- Final thoughts

While it’s been a troublesome year, COVID-19 has shown us all some significant exercises that are significant throughout everyday life and that we should be more ready for what’s to come. Making these strides now to future-verification of your accounts today could place you in a more grounded position if COVID-19 suffers, or in case we’re confronted with another emergency. Accounts NextGen says, on the off chance that you need assistance to take care of your cash during this time, you can peruse Money smart’s article on COVID-19 settling on monetary choices.

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