Cash economy and businesses
In July and August 2009, the Tax Office sent out letters to businesses in the retail, construction and consumer services industries, which have high volumes of cash transactions.
The Tax Office will send follow-up letters in September and October 2009 to selected businesses that it has identified as likely to present risks in connection with cash economy participation.
The Tax Office says it is likely that some of the taxpayers identified under the program will be subject to further review
TIP: Taxpayers should contact us to discuss any potential compliance issues that the Tax Office has identified in the letters.
Business Establishment Costs
Generally, a taxpayer is entitled to a deduction for capital expenditure incurred for a business proposed to be carried on.The deductible of the expenditure depends on the facts of each case and requires the taxpayer to reasonably conclude that the proposed business would commence within a reasonable time
Culture Is Important!
There are many attributes to creating a successful long-term business. No one attribute makes a successful business, but a combination of attributes will significantly contribute to long-term successful business performance.
These include listening to team members, customers and suppliers; learning from their comments and making changes if necessary. Virtually every week something is changing in business. To be successful, you need to keep on top of the ever-changing business climate.
Business operators need to encourage loyalty from their team members, suppliers and customers. These people will also expect loyalty from management, directors and owners.
The use of marketing tools such as;
- databases on customers,
- surveying customers on what they like and don't like about your business,
- keeping webpages up to date, and
- testing the market for reaction to new products and services,
- all help management get important feedback on their products/services?
Most successful businesses create strategic alliances with other people in their industry, either suppliers, similar businesses in other geographical areas that are not direct competitors, or allied organisations. Strategic alliances can significantly contribute to your knowledge base on what is happening in business.
But all these attributes fade into insignificance if there is no culture within the organisation. Culture affects every aspect of the business, shareholders, directors, management, team members, customers and suppliers. Culture is the hidden success, the icing on the cake, the attitude of team members of "going that extra distance" to satisfy customers' requirements. An attitude of a supplier making an extra late delivery to you when you need those supplies. The attitude of customers who might be prepared to overlook a late delivery because of their overall satisfaction of dealing with your business.
Culture relates to the image that your business creates in the market place:-
- How people communicate;
- Is the telephone answered in a professional business manner?
- Are telephone calls replied to?
- Are emails responded to?
- Are products delivered on time and at the required workmanship?
- Is quality a major issue in the business?
- Are staff pleasant and presentable?
Culture then is one of the major attributes of a business that will help hold the business together and will give the business that extra strength and perseverance to battle through and survive harsher economic circumstances.