Dream it, Plan it, Get it

Starting from 1 July 2026, employers will be required to make Superannuation Guarantee (SG) contributions to employees with every pay cycle, rather than on a quarterly basis. This reform aims to strengthen Australia’s superannuation system by ensuring employees receive their contributions more regularly, which helps mitigate unpaid super issues. Frequent SG payments will enable employees to better track their entitlements while also streamlining payroll management for employers. To facilitate a smooth transition, best practice would be to begin implementing these super changes now. This proactive approach will help businesses adapt to the new requirements ahead of the deadline. Legislative design will progress through the second half of 2024 ahead of draft legislation being released for consultation. This change is part of a larger government initiative focused on improving retirement outcomes and tackling superannuation theft. By starting early, employers can enhance their compliance and support their employees’ financial security more effectively. Example: By switching to payday super, a 25‑year‑old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement. 

Monitoring your financial performance is like checking your businesses financial heartbeat. It’s all about tracking those crucial metrics and indicators to see how well your financial engine is running. Ready to dive in? Here’s how to keep your financial game strong and your money matters on point!: Set Clear Objectives and Metrics: Define specific financial goals and key performance indicators (KPIs) that align with your business strategy. Examples include revenue growth rate, profit margins, cash flow, and return on investment (ROI). Regular Financial Statements: Review and analyse financial statements regularly. The main documents include: Income Statement: Shows revenue, expenses, and profitability over a period. Balance Sheet: Provides a snapshot of assets, liabilities, and equity at a specific point in time. Cash Flow Statement: Tracks cash inflows and outflows to assess liquidity. Financial Ratios: Calculate and analyse financial ratios to gain deeper insights into different aspects of financial performance: Liquidity Ratios (e.g., current ratio, quick ratio) measure the ability to meet short-term obligations. Profitability Ratios (e.g., gross profit margin, net profit margin) assess the profitability of the business. Activity Ratios (e.g., inventory turnover, accounts receivable turnover) evaluate operational efficiency. Debt Ratios (e.g., debt-to-equity ratio) indicate the level of financial leverage. Budget Variance Analysis: Compare actual financial results against budgeted figures to identify discrepancies and understand the reasons behind them. Trend Analysis: Track financial trends over time to spot patterns, opportunities, or potential issues. This involves comparing current performance with historical data. Benchmarking: Compare your financial performance with industry peers or competitors to understand your relative position and identify areas for improvement. Cash Flow Management: Monitor cash flow regularly to ensure sufficient liquidity for operational needs and to support growth. Risk Assessment: Identify and assess financial risks that could impact performance, such as market risks, credit risks, or operational risks. Management Reporting: Develop concise and informative reports for management and stakeholders, highlighting key financial metrics, trends, and insights. Use of Financial Software: Leverage accounting and financial software systems to automate data collection, analysis, and reporting processes, improving accuracy and efficiency. Regular Reviews and Adjustments: Conduct regular reviews of financial performance and adjust strategies as needed to achieve financial goals and improve overall performance. By following these steps and methods, businesses can effectively monitor their financial performance, make informed decisions, and drive sustainable growth and profitability. If you require assistance with designing, implementing, or understanding any of these steps, please contact Clear Vision Accountancy Group, 4688 2500, and allow us to assist you.