Why does my business need a budget?
Clear Vision • May 29, 2018
We hear this a lot! Often goes along with, “ I can pay my bills and wages – why worry?” or “I do the work, pay the bills and just spend what’s left.”
If this sounds like your approach we offer the following reasons why you should talk to us NOW about getting a proper budget in place for your business or personal situation.
- See what’s coming – Setting a budget at the beginning of the year can help you see problems or other issues that you need to address ahead of time. Key decisions around staffing, equipment, materials, space and cashflow can be made with careful consideration – not in a rush when you’re taken by surprise.
- Get everyone on the same page – Your business probably relies on a range of people to make it function effectively. Setting a budget that everyone knows and understands makes it easy for everyone to work in the same direction. For performance driven staff it can also make it clear how the connection between the money they generate for the business, the money they are paid and the sustainability of the business is connected.
- A critical measuring stick – As Zig Zigler said, “If you aim at nothing, you will hit it every time.” A budget lets you measure and track your performance against your expectations. If you’re not hitting those expectations – what’s the cause?
- Financing or Exit Strategies – Being able to demonstrate a history of setting budgets and working to them – whether they are 100% successful or not – is one of the strongest ways to demonstrate to a financier that you are capable of repaying a loan. If you’re considering an exit strategy a budget set out over several years showing how the business has developed will help reassure a potential buyer about what they can expect.
- Keeping your wallet closed! – Your business spending is far more likely to be kept under control when money is allocated within a documented budget and unallocated spending is either not tolerated or kept to a minimum.
- Spending & Profit connected – It’s surprising how often smart business owners don’t connect their spending directly enough to their eventual profit. With a properly formulated budget you can see immediately how an increase in spending will impact the amount of profit in your pocket at the end of the year.
If you need help getting a budget set for your business please contact us to arrange an appointment to discuss.
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If you own a rental property or holiday home, keeping the right records is key to maximising your tax deductions and staying ATO-compliant. This week, we’re highlighting what the ATO expects you to keep when it comes to residential rental properties. Here’s a quick checklist of the documents you should hold onto: Purchase & Sale Documents – Contracts, settlement statements, and legal documents. Loan & Ownership Records – Loan statements, refinancing documents, land tax assessments. Rental Income – If you don’t have a rental statement you will need to document all rental income received, including bond money retained, insurance payouts, and any other reimbursements. Expenses & Repairs – Keep receipts and invoices for expenses like advertising for tenants, property agent fees, council rates, strata levies, repairs, maintenance, insurance, and interest on loans. Depreciation & Capital Works – Receipts for assets over $300, depreciation reports, and capital improvement records. Before and after photos of any capital works. Holiday Home Use – If your property is rented out part-time, you’ll need evidence of when it was genuinely available for rent (e.g. booking requests, advertising, availability calendars). How long to keep records: You’ll need to keep most records for at least 5 years after lodging your tax return, or longer if claiming capital works or carrying forward losses. Keeping detailed records ensures you claim everything you're entitled to—and makes things much easier in the event of an ATO audit. Need help getting your documentation in order? Reach out to our team at Clear Vision Accountancy Group—we’re here to help. To read a more detailed list of items you need to keep for your rental property visit: Records for rental properties and holiday homes | Australian Taxation Office
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From 1 July 2025, the Superannuation Guarantee (SG) rate in Australia will increase to 12%. This means employers will be legally required to contribute at least 12% of an eligible employee's ordinary time earnings to their superannuation fund. This increase is the final step in a legislated rise from 9.5% in 2021 to 12% by 2025, aimed at boosting retirement savings for Australian workers. If you use Xero for payroll, the SG rate should automatically update in the system. However, we recommend you double-check your payroll settings to ensure everything is correct. If you’re unsure or need assistance, please contact your bookkeeper or get in touch with us at: Clear Vision Accountancy Group (07) 4688 2500 We’re here to help you stay compliant and avoid any costly errors.
