We believe there is a more sustainable approach which will not only improve the competiveness of your business, but help boost firm moral, it’s a type of “rebuild from within” method. To avoid a similar fate, small businesses can improve productivity by:

• Getting employees to become more creative and generate new ideas;
• Reviewing systems to eliminate unnecessary processes;
• Improving skills and focusing on management;
• Using more technological processes;
• Retraining older skilled workers;
• Rotating job tasks so employees do not become bored; and
• Providing incentives for the best performers.

If you are trying to explore ways to improve the productivity levels within your business feel free to contact us and discuss, or leave comments below and we will be in touch shortly!

Written by Marcus Hill

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Recently I had to scan something outside of work, using my 10 year old scanner and its 10 year old scanning software.  The experience resulted in an almost irresistible itch to throw my scanner out the window!  So after this crazed outburst it occurred to me that other people must be feeling the same frustration.

With so much of our lives being conducted on the computer and with more and more focus on the environment and running paperless systems, we should be considering updating our old technology to make our lives easier.

So here it is, my spiel about the wonderful capabilities of a program ‘Paperport’ which we use here at Overells -  and before you start shaking your head the program is only a one off payment of $100 – well worth it to make your life a little easier!

Some of the many features of Paperport include:

1.     The ability to handle and adjust scanned documents a lot more easily and with more features than are normally available from other scanner software, including

·         resizing documents to a smaller file size

·         adding annotations

·         highlighting information

·         rotating documents that are in landscape

·         adding stamps, notes and arrows

2.     You are able to add a security function to the actual PDF document when you want a higher level of security

3.     Once you have scanned a document to Paperpor, you can convert this into a Word document or into an XL spreadsheet.  An example of where this could be useful is to scan in your old bank statements and then convert these to XL, where you can easily sum and fiddle around with it.  So much better than the informationt being static on a piece of paper stored in your ancient filing cabinet, never to see the light of day!

4.     Have you ever had a form you have downloaded online and then had to print it out, complete with a pen and then rescan the document?  There is a built in feature of Paperport called ‘PDF viewer plus’.  Just drag your PDF to this and then you are able to type directly into the PDF document, saving you the hassle of printing and rescanning (and messy handwriting if you are anything like some of my colleagues!)

 5.     You don’t need to be a whiz on the computer to work it out (lucky for me!)

 Click here to go to the manufacturer’s website

If you don’t want a whole program such as Paperport, but you do want convert your Word or XL documents to PDF in an easy manner, why not consider using a PDF printer driver, such as Cute PDF, which is available for free - click here for a link to the website to download the program.

If you are interested in hearing more about either of these programs please feel free to contact us.

Written by Emily Dransfield

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The new Personal Property Security Act (PPSA) started on 30 January 2012.

Personal property is all types of property other than land, fixtures, water rights and some statutory licences. For example cars, boats, equipment, intellectual property, shares, and debts are all personal property.

The Personal Property Securities Register has been set up to ensure your interest in personal property is registered where they are being held by another party. This may apply to your SMSF where the trustees:

1. lease personal property to another;
2. place goods with another on consignment for sale; and
3. have goods in storage.

This may typically apply where the super fund holds valuables such as works of art or antiques.

Not registering your property could risk losing the asset or possibly breaching SMSF legislation and paying higher tax liabilities, particularly where the other party to the arrangement is a related entity.

Click here for more information on PPSA.

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Commercial landlords and shopping centre owners have seemingly been oblivious to the fact that we had a Global Financial Crisis and have continued to demand high rentals while the economy headed very much in the opposite direction.

The plight of struggling small businesses, especially those in popular shopping precincts, was clear as “For Lease” signs started popping up on shopfronts across Queensland.

However, some leasing business owners are starting to take a stand and rent negotiation is becoming more common and more successful!

Mark McInnes, CEO of the Premier Retail Group owning such major retail chains as Just Jeans, Jay Jay’s, Dotti, Portmans, Peter Alexander, Jacquie-e and Smiggle, took a firm stand against ridiculous rental prices at the company’s recent AGM.  This stance proved successful with their Portmans store in Canberra, where they achieved a rent reduction of 30% after threatening to simply shut the store and go online.

Promisingly, it is not just the retail giants with these powers of persuasion.  Other success stories include Broadbeach restaurants Sage and 1Two3 who negotiated a respective 45% and 32% reduction in rent.

Closer to home, Fortitude Valley was hit hard by the economic crisis and the reign of relentless landlords and is only now starting to experience some relief.  Lydia Zimnoch Woolcott, owner of the fashion boutique Drobe in the popular Ann St stretch, has negotiated a small reduction in her rent but comments:

“As much as there has been a little help and rent reductions here in Fortitude Valley, it is still far less than the 30% reductions seen in other areas.   There is still a long way to go to assist business owners in this area to be able to survive through this difficult economic time where retail sales are significantly lower than they need to be to stay afloat.”

George Hadgelias, Principal of Ray White Paddington, comments further on commercial leasing in Brisbane:

“What we’re finding is in good quality, high profile, high street locations that the rents being paid are at least the equivalent of, or in excess of, rents achieved pre the GFC. What we have found is to maintain the rents and obviously protect their investment, lessors are prepared to offer bigger incentives by way of contributions toward fit out and extended rent free or half rent periods.”

The key message here for renters is to negotiate – ensure that your rental commitment is both commercial and realistic for your business.  Next to the payroll, rental is often the largest overhead for a business and requires management and control. 

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We recently received the following email from our property manager which advised of the damage caused by a simple water leak and outlined how this incident might have been simply and inexpensively avoided.

. . .  A tenant’s hot water system burst and a significant water leak followed – causing damage not only throughout their tenancy but to common property (lifts, lights, walls, ceilings and fire panel) and to all the tenants below; this was exacerbated by happening over the weekend when no one was in the premises. Current estimates of the damage are in excess of $50,000 – excluding loss to trade and inconvenience.

If taps supplying water to appliances/equipment are not turned off when not in use, the hoses connecting your water supply will remain under constant water pressure. This constant water pressure can cause hoses to burst or slip off your tap. A burst hose can loose 10,000 litres of water in just 6 hours.

In this case the tenant’s hot water system was not maintained and did not have a water shut-off valve installed. The tenant is responsible for all damages resulting from equipment or fitout within the premises or belonging to them. Had a shut-off valve been installed water would not have been fed constantly for hours/days, damage would have been minor and contained.

The purpose of this memo is to bring to your attention the importance of ensuring your premises have shut-off valves installed – and not only to hot water systems but also dishwashers, fridges, fresh water filters, washing machines and any other appliances that may be connected to your plumbing.

Water-stop valves are relatively inexpensive and can be fitted by your plumber. If you have not already done so, we strongly encourage you to do so without delay. You can organise this yourself or we can put you in contact with the building plumber to carry out this simple task on your behalf. The following links highlight the simplicity of Water-stop valves:

http://www.enter-shop.com.au/catalogue/c36/c52/p166

http://www.waterwizzproducts.com.au/index.html 

We echo the warning – if you are not sure that you have water stop valves, contact your plumber and have them installed as soon as possible. Insurances may well cover the losses – but best to avoid the potential that they will not.

Written by Taya

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In keeping with our commitment to the community, Overells has recently donated to Cystic Fibrosis Queensland (CFQ) - a charity much underfunded by the government and, accordingly, in desperate need of assistance.  Currently CFQ receive only 46c per client per day from the government - what is really needed is at least $3.74 per client per day!

Founded in 1960 by concerned parents of children with cystic fibrosis, CFQ’s mission is “to provide the education, support and services that empower people in the cystic fibrosis community to realise their full potential.”

Cystic fibrosis is a genetic disease that is screened and detected at birth.  It causes thick mucous secretions, predominantly in the lung and pancreas, which lead to chronic lung infections and digestive and absorption difficulties. It is a lifelong condition with no cure but modern treatments such as physiotherapy, antibiotics and digestive enzymes have increased the life expectancy and quality of life of sufferers.

Some facts about cystic fibrosis include:

• Over 3000 Australians have it
• More than 1 million Australians carry the gene
• A baby is born every 4 days with it
• 80% of parents were unaware they were carriers of the disease
• Average life expectancy is 37 years
• There is no cure

It was not hard for Overells staff to choose where this month’s donation would go.  Cystic Fibrosis Queensland was a clear winner!

Although not one that appears on the balance sheet, good health is your most important asset! We are all fortunate enough here to have it in abundance and are excited to make a contribution to those who don’t.

Written by Jessica-Bell Allen

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I read in the Financial Review a page one headline to the effect "trusts are under attack from ATO".

We normally get our tax news from a variety of subscriptions rather than the Fin Review, so I read on with interest thinking we had missed something.  After all, there has been plenty of action on attacking trusts in the last year or two, so another one should not be a surprise.

The thrust of the article was that capital gains made in trusts may not attract the 50% discount that normally applies if the investment has been held for more than 12 months.  Surprised and a bit alarmed, I went to the ATO Ruling that was referred to, only to discover that there were no new principles espoused at all.  In essence, the Ruling was saying that if eg shares had been acquired for profit making by resale, then the 50% discount would not apply.  Now this is  a well known principle and applies regardless of the owner of the investment.

Conclusion?  Don't get your tax advice from newspaper headlines.  Surprise, surprise - they may be there to create a story, rather than impart genuine information!

Written by David Overell 

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When performance evaluation time comes around, managers more often than not ask employees to write a self-evaluation critiquing how they think they are doing. However, according to a recent article in “The Australian Financial Review”, written by Dick Grote, although this may seem like a good idea, it may not always be the case.

Theoretically, getting an employee to give a self-rating on their performance gives managers extra information to use in their evaluations and also gives employees a preview of what they should expect from their review. This method can actually “create a false impression of what performance appraisal is”. A performance review can be defined as a meeting where a manager provides their opinion on the quality of an employee’s work. This review meeting “is a discussion, not a negotiation” and this is where self-appraisals can encourage misunderstandings.

Dick’s research for his book “How to be Good at performance Appraisals”, proved that individuals are “notoriously inaccurate” when it comes to assessing their own performance and that “the poorer the performer, the higher (and more inaccurate) the self-appraisal”.   Incompetent employees are blind when it comes to assessing the distinction between a good and a bad performance. During Dick’s studies, a senior executive described to him his company’s practice of using a forced-ranking system to identify the A,B and C performers. This executive said, “The A’s are afraid they’ll be considered B’s, the B’s are scared they’ll be seen as C’s, and all the C’s are convinced that they’re A players.”

Managers are the most accurate assessors as they provide a generally unbiased evaluation of the job their employees are doing, the positives and the negatives, which can be something the employees don’t do themselves.

If it is company policy to conduct self-appraisals, there is a better way to go about it. First of all, the manager can explain the main purpose of these self-evaluations is a way to gauge how the employee is performing from their own point of view and that it will be only one of the data sources used to prepare their actual performance evaluation. Secondly, you should ask employees to fill these appraisals out well in advance of the actual review meeting, so it can be used by the manager to prepare for it.

Written by Bronte Packer-Hill

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For the past two years we have been using Praemium, a portfolio admin service, which allows us to efficiently and accurately process a client’s portfolio for year end tax purposes.

Key advantages include:

•    fully automated corporate actions to handle situations such as demergers and consolidations
•    automatic broker feeds and upload function to record buys and sells efficiently

If you have a portfolio which consists mainly of term deposits, listed shares or other equity investments, then Praemium portfolio reports may well assist with your investment performance reporting and management.

Praemium has another online feature, V Wrap Investor, which allows access to reports and graphs of:

•    daily trade info
•    portfolio performance
•    performance for any listed security
•    estimated dividends/distributions
•    market activity showing top twenty upward moving securities
•    broker trades analysis by security

If you have a portfolio already set up with us, it is free to access once we have given you a log in.  Watchlists and alerts can also be set up.

So please feel free to contact us if this interests you.

See the full gallery on Posterous

Written by Carinne Foong  

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The ATO has warned you may get stung by any of a number of refund scam emails currently circulating.

These emails claim to come from the ATO and offer a tax refund.  Generally, they link to a bogus ATO website asking for personal and credit card details.  The emails may differ in their appearance and level of sophistication but will generally state that you are eligible for a refund and instruct you to click on a link to submit a form to receive it.  

One version of this scam contains an attachment infected with a virus.  Typically, you will be asked to complete a form or click a link allowing scammers to steal your information or infect your computer with malware.  Malware (short for malicious software), consists of programming designed to disrupt or deny operation and to gather information which leads to a loss of privacy or exploitation, gain unauthorised access to system resources, and other abusive behaviour.

Be aware that the ATO SMS and email messages will never include, or ask you to provide, personal information and do not require any form of reply.

And you are not safe on the phone either!  

From time to time the ATO may contact you by phone but you should be wary of unsolicited phone calls claiming to be from the ATO and offering you a tax refund.  Increasingly these scams use names and addresses that have some correlation to actual ATO officers and buildings.  If in doubt about the authenticity of a call that you receive from the ATO we recommend that you contact the ATO on one of their publicly listed numbers to verify the legitimacy of the call.

Under no circumstances should you give personal information including credit card or banking details. Anyone who has received a suspicious phone call or email should contact the ATO immediately.

Written by Cherie Powell

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With all those Windows 7 ads out there, it’s no surprise that some of our clients are upgrading their software.  What has been a surprise though is that various programs have not transferred properly! 

Accordingly, I have asked our IT guru, Damon Fealy of Veracity, how clients can ensure their upgrade is successful

Damon’s first recommendation is to always ensure that you backup your data and, if you have an IT person, give them a call before finalising any purchases.

The most common upgrade he is doing at the moment is a migration from a Windows XP machine to a new Windows 7 machine and he has provided a guide from Microsoft on how to do the upgrade.  Click here to view the processes, noting we can’t take any responsibility for the information and it should not be taken as advice (as virtually every computer configuration will be slightly different).  BUT it is the Microsoft process so one would hope that it’s accurate!

In addition to the above, I would also suggest making a note of the programs that you have in your ‘start menu’ and ensure that, at the end of the upgrade, they are all still there.

Taya

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Here at Overells we place great importance on developing a strong sense of community, not only within the office amongst our team and our clients, but also externally.  With this, we regularly donate to charities chosen by our team as a group.

Locally, we provide pro-bono services for “Specialised Programs And Community Endeavours” – a local independent community centre for people with special needs.  We also host an annual “Biggest Morning Tea” and attend ‘fun run’ events that raise funds for charities.  Our staff are also active in personal donations, including ‘working’ for charities, and donating blood.

At our last management meeting we decided to donate to the appeal for East Africa, where across Somalia, Ethiopia, Kenya and Djibouti, 13.3 million people (two thirds of the population of Australia) including over 4.14 million children, are affected by devastating droughts, famine and conflict.

The scale of this crisis is almost incomprehensible to us and serves as a reminder of the privileged position we are all in.  Although devastated by a disaster of the opposite extreme with the recent Brisbane floods, our loss, if any, was limited mostly to material things. In Africa now loss is measured in lives.  Just as many of us extended a helping hand to our local flood victims, we wanted to reach further and offer aid to those in Africa where such local help is non-existent but even more desperately needed.

Sally, one of our cadets here, was the one to put the idea forward to donate to the famine in East Africa, commenting that we too often get carried away with what is going on here when far worse is happening on the other side of the world.

Another one of our cadets, Jess, was also strongly in support of the donation to Africa, having visited Tanzania early last year to volunteer with the medical checks at the School of St Judes, an experience from which she developed a profound admiration and liking for the African people.

In addition to this donation to UNICEF, we continue to support Yeasmin (a girl from Bangaldesh) through World Vision to ensure our community spirit is maintained on a global basis.

Jessica Bell-Allen

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I recently read an interesting article in The Financial Review BOSS magazine (Vol 12 published in June 2011) about changing telephone technology.
 
Rachel Botsman discusses the future and the value of your mobile phone being an interactive device covering three key areas:

1. Payments
2. Banking
3. Commerce

PayPal transactions via mobile have increased from 1% in 2010 to over 11% over the past year.

The NAB predict that with its current rate of mobile banking growth, by 2014 internet logins via mobile devices will exceed desktop logins which is being driven by ease, speed & choice.

The head of PayPal Australia claims your phone is more secure than your wallet – because of GPS tracking and the ability to lock the phone remotely (with the overriding comment that most smart phones offer this security but you need to activate it).

Comments were made regarding a number of issues including:

• Real time spending visualisation – ready access to your bank statement
• Wave & Pay – wave your phone across a store reader to make payment
• Bump Payments – e.g. one person pays the restaurant bill and the others reimburse via the bump of telephones
• Mobile phone credit billing
• Text payments
• Phones as credit card processors
• Remote cheque deposits

Open the attachment for the full article.

Peter Flemming

Pay_as_you_go.pdf Download this file

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A growing firm shows prosperity and success and the more workers you can employ and clients you have is better, right? Well according to Fiona Smith’s article in the Financial Review, humans just aren’t meant to work in large groups of people.  In fact, we work best in groups that are quite small.

Have you ever noticed at work or at a party that people seem to form groups no bigger than 4? It’s because we like attention and, in a gathering any larger than 4, we will be unable to command the attention of others around us.  Think of this in the workplace – having trouble getting someone to speak up?  Maybe splitting the group into a smaller size where each person can be heard and hold the attention of others may be the solution.

We all have times when we just can’t concentrate, forget what we were working on or are meant to do next – well maybe our list of responsibilities is just too high.  Not only do we find it hard getting the attention in a group larger than 4, we also innately struggle to remember a list larger than 7.  The special number 7 relates to team work as well.  In a team of 7 we can work functionally and create a sense of intimacy within the group.  Expand the group to 8, and you’ll find productivity and efficiency will drop.  We are definitely not saying big is bad however you just might find splitting a big group into two or more will give you much better results.

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We have all heard that it is important for employees to have a “work life balance”… but do you know

• what it is
• why it is valuable to ensure your employees have one?
• how to effectively assess your work life balance?

Most people think it is just about having flexibility in work time to be able to ‘duck off to a meeting at the school’ or ‘work from home when the kids are sick’… but is that all it is?

The experts don’t think so.

The Work Life Balance Foundation state on their website that

“Three major studies suggest that in Australia at least 24 days worth of productivity is lost per employee per year due to poor health and lifestyle factors costing Australian business $100 billion each year.

All employees struggle at times to balance work and family commitments as well as keeping healthy. The problem is that when workers have lowered levels of health and wellbeing or poor work life balance it severely limits business growth through lost productivity, stress and days off sick.”

So, as an employer, it is in your interests to talk to your staff about their “work/life/health” balance and ensure that they are fit to perform their duties at all times.

By using research tools like this quiz people are able to rate their work life balance and reflect on their quality of living.  It assesses how we view our life, work and career, home environment, finances, personal health, leisure and relationships to give us a ‘contemplation circle’ which gives us direction for us to start improving our balance.

All staff at Overells were recently given access to the Baume and Co quiz and were amazed at the depth the quiz went into and how it gave you specific areas to improve so as to lift overall lifestyle – never before would I personally have connected “my appliances work well” to my day to day duties, but having looked at in context of my overall happiness I’m quite glad I got the new kettle!

If you are looking for more inspiration

• have a look at the Work Life Balance Foundation’s website under “member resources” and see some articles on various work, life, health areas – everything from goal setting and planning to rest and relaxation
• do a google search on “Work life balance” “work life balance quiz” “work life balance ideas”
• start up a conversation with your team about what they think it is, and then do the Baume and Co quiz and see whether they feel they are on the right path.

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Human Services Minister Chris Bowen says, "This reform is about cutting red tape and making processes more efficient for those who require a Government service and those who provide it."

An article in ‘The Australian’ quoted the Parliamentary secretary for community services Julie Collins saying, "increased self-service options will allow people to manage their own affairs, including through expanded online services," and added that this integration into a single department would “bring together back-office functions to improve efficiency, reduce costs and free up staff”.

Ms Collins also mentioned that the government was conscious of the need to protect customer data. "Importantly, any new sharing of customer data within the integrated department will occur only with customer consent.”

Along with Medicare and Centrelink, this new agency will also incorporate the Child Support Agency and disability service organisation, CRS Australia, under the one roof. The changes are predicted to “improve service delivery and reduce bureaucratic processes and duplication” and, as stated in an article from ‘The Australian Financial Review’, will begin “a new era of service delivery”.

Mr Bowen says the changes are needed as the population ages and more people require pension and carer payments.

20 new offices are expected to be set up around the country by the end of next year and a further 20 by the end of 2012 – time will tell whether or not there is actually an improvement in service delivery.

Bronte

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A recent experience has reminded me of the fragility of our existence, and accordingly the need to "live in the moment".  Nothing new here really, but it is so easy to forget and play the games of "if only" and "what if".

So I am jogging with some family members in Sydney on the way to the start line for the City to Surf run.  It is raining, and seeking some cover I run onto some steps, forgetting that water and concrete steps = slippery.  Received an instant reminder of that equation as my shoulder dislocated from the impact of arriving at the bottom of the steps.

Apart from the pain and missing the run, it has also put a halt to the usual weekly activities of golf and tennis.  So here I am on a Saturday afternoon, with some time to reflect on something other than my lousy putting.

The reflection?  Well I was a fraction away from some really nasty possibilities, like a broken back or some serious head injury.  The shoulder is a minor interruption, but the other possibilities (playing "what if" here!) could have been quite life changing. We all know people who have been stricken with a variety of life changing events, so nothing new here either.

The conclusion?  Don't take what we have now for granted.  Enjoy the moment for what it is.  "Be there"!

David

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The way we shop has taken a dramatic turn in the past few years.  More and more consumers are looking to the internet to find the goods they want and no longer stepping into the physical stores.  Is this a good or a bad thing and who does it affect?

The obvious stakeholders are retailers and consumers.  Retailers have found and will continue to find that, if they do not adapt and move into the new world of online shopping, they will inevitably fail.  On the other hand, consumers love the newfound power of using the internet to shop.  It is now as simple as a click of a finger to find the cheapest price and best product available.  However, if retailers choose to innovate and explore this online opportunity, they could be party to much more information about their customers than ever before.  With vast amounts of customer-purchasing data and behavioural details, together with the use of social media networks, retailers could engage customers in ways they have never been communicated with before.

Sally

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The book covers how to provide exceptional service to your clients and details how Merrill Lynch approached this issue.  It has some very good pointers on how to assess your clients and whether they are a good fit for your business.

The underlying theme is that your business must provide the service your clients need/want to satisfy their needs.

Highlighted in the considerations is that you only have a certain amount of time and it should be used  to effectively provide a service that is:

• required by the clients who need/appreciate it and are prepared to pay a reasonable fee for it

• rewarding to your business

You cannot be everything to all clients and it is important to match your business model with those you provide to. If you don't align your clients with the service you provide, you are restricting your growth and your ability to provide what is needed.

The service you provide must also be rewarding for you/your business. Once the benefits are mutually generated, you can develop the relationship further so that your clients are good ambassadors for your business.

To achieve full potential it is important to develop a good, close relationship with your clients. You also need to go beyond just being a service provider in their eyes.

Issues such as delegation of responsibilities and checklists to ensure you meet your KPI’s, etc are covered.  Leadership is summarised as clear observation, clear communication and problem solving – not just doing everything yourself. A leader develops others to get the job done. While not every example may apply to your business, it is a healthy reminder of practical issues that you should consider and revisit to keep your business effective and efficient.

The book is based on a successful model in USA. Whilst some cultural matters are best handled a little differently in Australia, it does remind a business operator of important considerations and contains valuable messages.

Peter

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We make deals every day. Big or small, none of us want to make a bad deal – however, there are many psychological traps that we fall into that will inevitably lead us to making a dumb deal.

Harry Mills’ article in Charter magazine outlines a few key traps to try to avoid - Psychological traps

• Overconfidence in making a deal

Research shows that dealmakers are largely overconfident and arrogant about their skills, knowledge and deal making abilities.  None of us like to lose and, psychologically, we remain overconfident because we routinely remember to play up our successes and try to forget out failures

• Ensure our gains while trying to avoid losses

When dabbling in the stock market, do you sell your stock as soon as prices rise in order to ensure a profit while, when prices decline, you try to wait out the ‘bad period’. Research shows this is what most of us do.  But think about it – shouldn’t we really be holding on to the stock increasing in value and getting rid of the stock that’s not?

• Jumping in without thinking of the consequences

Although this, in itself, is a big mistake we usually stick to these deals (even if originally a bad idea), because we find ways to reinforce why we thought it was a good idea in the first place.

• Price misconceptions

Although most of us go into a deal with an idea of how much we want to get, offers made by others can seriously affect our expectations.  In the real estate market, we will subconsciously compare the second offer to the first, even if both are lower than what we ever expected in the first place

Handy tip: If selling your house, get an independent evaluation to calculate what it’s really worth and avoid using an offer to benchmark your expectation

Sally

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