How To Maximise Revenue As You Reopen
October 29, 2020
The next few months are critical!
Melbourne is back! The whole city is buzzing as retail and hospitality open their doors and welcome back customers. Of course, nothing is as simple as just flipping a switch. Many businesses are now making adjustments to open in the next week, especially hospitality. For example, planning new menus, organising liquor licenses for footpath dining or buying new tables suitable for outdoor dining takes time.
For a full list of the requirements and restrictions please visit the Vic.gov.au roadmap here. While the instructions are straight forward the best way to go about reopening from a revenue perspective isn’t as clear. We have compiled a list of our best practices to re-open and maximise your profits.
Recommendations for Hospitality
The hospitality sector has been reinventing itself over the course of the pandemic. And now as we slowly ease back into COVID normal life businesses will need to change their seating and layouts. Take into account that your current chairs and tables may not be suitable for carrying in and out. And it is important to ensure that the tables fit into the space well to ensure the distancing requirements are met. It is important to decide if now is the best time to invest in new furniture. With reduced revenue conditions it is important to consider the benefits of having tables that will maximise profits now and into an uncertain future. While restrictions will be lifting more in November, true COVID normal life will not return until there have been no new cases for 28 days and no outbreaks of concern in other states and 14 days with no active cases. Keeping this in mind it could be more cost effective to plan for new purchases in bulk to keep costs lower. It is wise to plan ahead to acquire seating that maximises the space and reduces potential lost revenue.
There are also menu planning changes to consider. The prices and portion sizes should be adjusted to suit the new dine in rules. New menus should feature less options at price points for optimised revenue. For example, if people can stay for a maximum of 90 minutes on a Saturday night do a break-even analysis to ensure you understand how much each person must spend to make a profit. Redesign the menu to produce a combination of meals and starters that will achieve the minimum spend in a simple way for customers. To understand what the minimum spend should be please use the following formula for pricing each dish:
Break even quantity = Fixed costs / (Sales price per unit – Variable cost per unit)
The final aspect of retaining profit margins is calculating how many staff to schedule. While there are less people dining in and will need potentially less staff it is important to remember there are extra duties. For example, gathering names for contact tracing and extra cleaning duties. Use software such as Deputy
and ENTO
to create rosters and set budgets for staff shifts. The software also allows for the creation of budgets to ensure your break-even numbers stay intact.
Remember there is plenty support from local council so do not try to go it alone. Reach out for information or support for all liquor license extensions and foot path regulations. All councils have dedicated staff and information available at this time to help hospitality open quickly and within all regulations.
Recommendations For Retail -
Retail stores will have built up email lists from web-based sales. Now is the time to maximise sales by investing in an email list manager. There are lots of options available from free to paid options. For example, Mailchimp
or Tiny Letter
is free for lists under 2,000 subscribers. There are paid options for larger lists on Mailchimp or more specialised ecommerce options such as Drip. All paid versions will help you understand the buying behaviour of your list. This makes it easier to send special offers to your best customers or to keep them up to date on the trading terms and hours of your business.
Use your newsletter and social media to publish clear rules for shopping in store. It is very important to keep customer expectations managed before their arrival. Social media posts explaining how to enter the premise safely, how many people are allowed inside at any time and the locations of hand sanitisers will help people to plan their visits. You can also offer phone numbers for customers to call ahead first to check before heading in at busy times. Do not wait to explain any changes to the business, be proactive and reach out first.
Retail is required to keep track of contact details of people who enter the store. This can be done at check-out with systems such as Square that can capture this information at the time of purchase. Or simply use a pad and pen. The government may release of a universal bar code later this year, but until then it will need to be managed by the business owners.
It is critical to remember that any systems set up now could involve some initial costs. Long-term profitability will involve the use of increased digital communication and management tools. If you have any questions on what options are best for your business, please do not hesitate to get in touch.
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The Australian Taxation Office (ATO) has announced a significant change affecting how small businesses process employee superannuation contributions through its Small Business Super Clearing House (SBSCH). Effective 30 June 2026, the ATO will cease providing the Small Business Super Clearing House (SBSCH) service. This change means that small businesses will need to transition to an alternative method for paying superannuation contributions to their employees' chosen funds before the deadline. What is the SBSCH? The Small Business Super Clearing House is a free, online service provided by the ATO that allows eligible small businesses (those with 19 or fewer employees, or with an annual aggregated turnover of less than $10 million) to make all their super guarantee contributions in a single transaction. The ATO then distributes the payments to the employees' respective super funds. The service has been a convenient tool for simplifying compliance and reducing the administrative burden on smaller enterprises. Why is the ATO making this change? The move is part of the broader push towards streamlining business processes and encouraging the adoption of more integrated, commercial solutions. With the proliferation of payroll and accounting software that incorporates Single Touch Payroll (STP) and superannuation payments, the ATO is transitioning out of directly providing this service. What are Your Alternative Options? The good news is that the market offers numerous robust and integrated alternatives that can handle your superannuation obligations seamlessly. Businesses must select and implement a new system before the 30 June 2026 cut-off date to ensure continuous compliance. Here are the most common alternative solutions: 1. Cloud-Based Accounting and Payroll Software Most modern cloud-based accounting platforms include integrated payroll functionality that allows you to calculate, process, and pay super contributions directly. These systems are often pre-configured to meet STP requirements and simplify compliance. Xero Integrated payroll with key features of direct super contribution payment and STP compliance. Suitable for Small to Medium Businesses (SMBs) seeking a comprehensive accounting and payroll solution. QuickBooks Online Payroll integration with key features of automated super calculation and payment (via partners like Employment Hero Payroll). Suitable for SMBs already using the QuickBooks ecosystem or needing strong project tracking. MYOB Offers various payroll solutions (e.g., MYOB Business) with key features of integrated super and STP reporting. Suitable for Businesses needing robust local reporting and compliance features. 2. Commercial Superannuation Clearing Houses If your business prefers to keep payroll and superannuation separate from your accounting software, or if you use a system without integrated super payments, a dedicated commercial clearing house may be the answer. These services specialise in handling the distribution of super payments to multiple funds. 3. Employee Super Fund's Clearing House Some large superannuation funds offer their own clearing house services, which may be available to employers who contribute to that fund. Check with your employees' primary super funds to see if this is an available, viable option for your business. Action Plan: Next Steps for Your Business To ensure a smooth transition, small businesses should begin planning immediately: Assess Your Current System: Review your existing accounting or payroll software. Does it offer integrated super payment functionality? Evaluate Alternatives: Research the options listed above (Xero, QuickBooks, MYOB, commercial clearing houses) and determine which best fits your business size, budget, and existing processes. Plan the Transition: Allow ample time (well before June 2026) to select, set up, and test your new system. This includes migrating employee and fund details. Seek Professional Advice: Consult with your accountant or bookkeeper to ensure your chosen solution is compliant and correctly implemented.
Navigating Volatility: Budgeting and Forecasting in the Face of Geopolitical Uncertainty The global economy is currently wrestling with complex challenges, and few are as immediate and impactful as the escalating fuel costs driven by geopolitical uncertainties in the Middle East. Recent events have led to the imposition of a fuel levy and a broad increase in operational costs across all industries. For Australian businesses, this volatility is a stark reminder of the need to move beyond static, annual planning and adopt a truly dynamic approach to budgeting and financial forecasting. The Immediate Impact: Fuel Levy and Rising Costs The instability in key oil-producing regions is filtering directly into our daily operational expenses. For any business relying on transport, logistics, or energy-intensive processes, the new fuel levy is an immediate margin pressure. This isn't just about the cost of filling up a vehicle; it’s about the ripple effect across the entire supply chain. Logistics: Increased freight charges are being passed down by carriers. Production: Energy costs for manufacturing are soaring. Overheads: Even utility bills reflect the higher cost of global energy. In this environment, a budget set six months ago based on old fuel price assumptions is now obsolete. Sticking rigidly to that outdated plan is a fast track to missed targets and strained cash flow. The Imperative for Dynamic Budgeting Dynamic budgeting, also known as rolling forecasts, is the necessary countermeasure to current market uncertainty. It replaces the traditional "set-it-and-forget-it" annual budget with a process of continuous revision and adaptation. This involves: 1. Shifting to Rolling Forecasts Instead of forecasting for the next calendar or financial year, we must maintain a continuous 12-month outlook. Every quarter, or even monthly, we should drop the month/quarter just passed and add a new one at the end. Activity Traditional Budgeting to Dynamic Forecasting Frequency Annually to Monthly or Quarterly Duration Fixed (e.g., FY 2026) to Rolling (e.g., next 12 months) Basis Past performance and static assumptions to Real-time market data and revised assumptions 2. Scenario Planning and Sensitivity Analysis To effectively manage the risk of geopolitical events, organisations must formalise scenario planning. This means building financial models that can quickly simulate the effects of various external shocks: Worst-Case Scenario: What if the fuel levy doubles and oil prices hit $150 per barrel? What cost reduction plans are immediately triggered? Moderate Volatility Scenario: What if costs stabilise at the current elevated level? What pricing adjustments are needed? This practice allows management to have pre-approved action plans for different eventualities, avoiding panic-driven decisions. 3. Integrating Real-Time Data Successful dynamic budgeting requires breaking down data silos. Financial planning and analysis (FP&A) must integrate real-time operational data from logistics, procurement, and sales: Fuel Consumption: Track actual consumption rates and costs weekly, not monthly. Supply Chain Costs: Link supplier invoices directly to forecast models to instantly see the impact of new surcharges. FX Exposure: For international trade, model the interaction between energy prices and currency fluctuations. Our Call to Action To manage the current climate, we recommend immediate action focused on flexibility and transparency: Conduct an Immediate Review: Schedule a meeting to review Q2 forecasts based on the current fuel levy and updated geopolitical outlook. Model Cost Pass-Through: Clearly determine which cost increases can be absorbed, and which must be passed onto customers, and at what timeline. Invest in Agility: Ensure your budgeting software/platform supports frequent, driver-based forecasting rather than rigid spreadsheet models. Assign Volatility Management: Appoint a person to head the new Geopolitical Risk Monitoring Group to provide monthly updates on external factors impacting your costs. By embracing dynamic budgeting and forecasting, we transform uncertainty from a crippling threat into a manageable variable. This is not just a financial exercise; it is essential to maintaining competitive advantage and long-term resilience in a volatile world.
Navigating Payday Super and Cashflow: What You Need to Know The recent shift towards 'Payday Super' in Australia marks a significant change for businesses and employees alike. Understanding this new obligation—which mandates the payment of superannuation guarantee contributions on the same day as wages—is crucial for maintaining compliance and healthy cash flow. What is Payday Super? Currently, employers are generally required to pay superannuation contributions for eligible employees at least quarterly. 'Payday Super' is the proposed change where the superannuation guarantee payment would be due at the same time as the employee's salary or wages are paid, whether that's weekly, fortnightly, or monthly. This change is scheduled to take effect from 1st July, 2026. This is a fundamental shift designed to improve the retirement savings of Australians by ensuring superannuation is paid more frequently and reducing instances of unpaid super. The Impact on Business Cash Flow While the benefits for employees are clear, businesses must prepare for the implications this change will have on their cash flow management. 1. Increased Frequency of Payments The most immediate change is the move from a quarterly superannuation lump sum to frequent, smaller payments. This requires: Tighter Budgeting: Businesses will need to forecast their payroll and superannuation obligations with greater precision across shorter intervals. Reduced Quarterly Buffer: The current system allows businesses to hold onto super funds for up to three months, acting as a small, temporary cash flow buffer. This buffer will disappear. 2. Enhanced Compliance Requirements With superannuation payments tied directly to each pay run, the administrative burden and the risk of non-compliance increase. To manage this effectively, businesses should: Review Payroll Systems: Ensure your current payroll software can automatically calculate and process super payments concurrently with wages. Establish Clear Processes: Define a robust workflow that ensures superannuation is remitted to the fund on the same day the net pay is transferred to the employee. Strategies for Managing the Change Proactive planning is essential to smooth the transition to Payday Super. Consider the following strategies: Cash Flow Forecasting Develop detailed weekly or fortnightly cash flow projections that explicitly include the super obligation for that period. Use historical data and future projections to identify potential shortfalls. Separate Superannuation Funds Immediately transfer the calculated super liability into a dedicated, separate account on pay day. Isolate super funds from operating capital to avoid accidental spending. Negotiate Payment Terms Evaluate supplier payment terms to align cash outflows with increased payroll frequency. Extend credit terms where possible to balance the new frequent super outflows. Review Accounting Software Leverage modern accounting and payroll solutions that automate and integrate wages, PAYG withholding, and super. Consult with a financial advisor or bookkeeper, such as 360 Accounting Services, to confirm system readiness. Next Steps and Resources This new regulation will have a significant impact on financial operations. We recommend that all business owners and payroll managers review processes and seek guidance. Useful Documentation For detailed information on the new requirements, please refer to the following: Official ATO Guidance: ato.gov.au/paydaysuper The move to Payday Super is an inevitable change. By understanding the implications for cash flow and implementing strong financial management practices today, businesses can ensure a seamless transition and remain compliant when the new rules come into effect at Place.
The Australian Taxation Office (ATO) has announced a significant change affecting how small businesses process employee superannuation contributions through its Small Business Super Clearing House (SBSCH). Effective 30 June 2026, the ATO will cease providing the Small Business Super Clearing House (SBSCH) service. This change means that small businesses will need to transition to an alternative method for paying superannuation contributions to their employees' chosen funds before the deadline. What is the SBSCH? The Small Business Super Clearing House is a free, online service provided by the ATO that allows eligible small businesses (those with 19 or fewer employees, or with an annual aggregated turnover of less than $10 million) to make all their super guarantee contributions in a single transaction. The ATO then distributes the payments to the employees' respective super funds. The service has been a convenient tool for simplifying compliance and reducing the administrative burden on smaller enterprises. Why is the ATO making this change? The move is part of the broader push towards streamlining business processes and encouraging the adoption of more integrated, commercial solutions. With the proliferation of payroll and accounting software that incorporates Single Touch Payroll (STP) and superannuation payments, the ATO is transitioning out of directly providing this service. What are Your Alternative Options? The good news is that the market offers numerous robust and integrated alternatives that can handle your superannuation obligations seamlessly. Businesses must select and implement a new system before the 30 June 2026 cut-off date to ensure continuous compliance. Here are the most common alternative solutions: 1. Cloud-Based Accounting and Payroll Software Most modern cloud-based accounting platforms include integrated payroll functionality that allows you to calculate, process, and pay super contributions directly. These systems are often pre-configured to meet STP requirements and simplify compliance. Xero Integrated payroll with key features of direct super contribution payment and STP compliance. Suitable for Small to Medium Businesses (SMBs) seeking a comprehensive accounting and payroll solution. QuickBooks Online Payroll integration with key features of automated super calculation and payment (via partners like Employment Hero Payroll). Suitable for SMBs already using the QuickBooks ecosystem or needing strong project tracking. MYOB Offers various payroll solutions (e.g., MYOB Business) with key features of integrated super and STP reporting. Suitable for Businesses needing robust local reporting and compliance features. 2. Commercial Superannuation Clearing Houses If your business prefers to keep payroll and superannuation separate from your accounting software, or if you use a system without integrated super payments, a dedicated commercial clearing house may be the answer. These services specialise in handling the distribution of super payments to multiple funds. 3. Employee Super Fund's Clearing House Some large superannuation funds offer their own clearing house services, which may be available to employers who contribute to that fund. Check with your employees' primary super funds to see if this is an available, viable option for your business. Action Plan: Next Steps for Your Business To ensure a smooth transition, small businesses should begin planning immediately: Assess Your Current System: Review your existing accounting or payroll software. Does it offer integrated super payment functionality? Evaluate Alternatives: Research the options listed above (Xero, QuickBooks, MYOB, commercial clearing houses) and determine which best fits your business size, budget, and existing processes. Plan the Transition: Allow ample time (well before June 2026) to select, set up, and test your new system. This includes migrating employee and fund details. Seek Professional Advice: Consult with your accountant or bookkeeper to ensure your chosen solution is compliant and correctly implemented.
Navigating Volatility: Budgeting and Forecasting in the Face of Geopolitical Uncertainty The global economy is currently wrestling with complex challenges, and few are as immediate and impactful as the escalating fuel costs driven by geopolitical uncertainties in the Middle East. Recent events have led to the imposition of a fuel levy and a broad increase in operational costs across all industries. For Australian businesses, this volatility is a stark reminder of the need to move beyond static, annual planning and adopt a truly dynamic approach to budgeting and financial forecasting. The Immediate Impact: Fuel Levy and Rising Costs The instability in key oil-producing regions is filtering directly into our daily operational expenses. For any business relying on transport, logistics, or energy-intensive processes, the new fuel levy is an immediate margin pressure. This isn't just about the cost of filling up a vehicle; it’s about the ripple effect across the entire supply chain. Logistics: Increased freight charges are being passed down by carriers. Production: Energy costs for manufacturing are soaring. Overheads: Even utility bills reflect the higher cost of global energy. In this environment, a budget set six months ago based on old fuel price assumptions is now obsolete. Sticking rigidly to that outdated plan is a fast track to missed targets and strained cash flow. The Imperative for Dynamic Budgeting Dynamic budgeting, also known as rolling forecasts, is the necessary countermeasure to current market uncertainty. It replaces the traditional "set-it-and-forget-it" annual budget with a process of continuous revision and adaptation. This involves: 1. Shifting to Rolling Forecasts Instead of forecasting for the next calendar or financial year, we must maintain a continuous 12-month outlook. Every quarter, or even monthly, we should drop the month/quarter just passed and add a new one at the end. Activity Traditional Budgeting to Dynamic Forecasting Frequency Annually to Monthly or Quarterly Duration Fixed (e.g., FY 2026) to Rolling (e.g., next 12 months) Basis Past performance and static assumptions to Real-time market data and revised assumptions 2. Scenario Planning and Sensitivity Analysis To effectively manage the risk of geopolitical events, organisations must formalise scenario planning. This means building financial models that can quickly simulate the effects of various external shocks: Worst-Case Scenario: What if the fuel levy doubles and oil prices hit $150 per barrel? What cost reduction plans are immediately triggered? Moderate Volatility Scenario: What if costs stabilise at the current elevated level? What pricing adjustments are needed? This practice allows management to have pre-approved action plans for different eventualities, avoiding panic-driven decisions. 3. Integrating Real-Time Data Successful dynamic budgeting requires breaking down data silos. Financial planning and analysis (FP&A) must integrate real-time operational data from logistics, procurement, and sales: Fuel Consumption: Track actual consumption rates and costs weekly, not monthly. Supply Chain Costs: Link supplier invoices directly to forecast models to instantly see the impact of new surcharges. FX Exposure: For international trade, model the interaction between energy prices and currency fluctuations. Our Call to Action To manage the current climate, we recommend immediate action focused on flexibility and transparency: Conduct an Immediate Review: Schedule a meeting to review Q2 forecasts based on the current fuel levy and updated geopolitical outlook. Model Cost Pass-Through: Clearly determine which cost increases can be absorbed, and which must be passed onto customers, and at what timeline. Invest in Agility: Ensure your budgeting software/platform supports frequent, driver-based forecasting rather than rigid spreadsheet models. Assign Volatility Management: Appoint a person to head the new Geopolitical Risk Monitoring Group to provide monthly updates on external factors impacting your costs. By embracing dynamic budgeting and forecasting, we transform uncertainty from a crippling threat into a manageable variable. This is not just a financial exercise; it is essential to maintaining competitive advantage and long-term resilience in a volatile world.
Navigating Payday Super and Cashflow: What You Need to Know The recent shift towards 'Payday Super' in Australia marks a significant change for businesses and employees alike. Understanding this new obligation—which mandates the payment of superannuation guarantee contributions on the same day as wages—is crucial for maintaining compliance and healthy cash flow. What is Payday Super? Currently, employers are generally required to pay superannuation contributions for eligible employees at least quarterly. 'Payday Super' is the proposed change where the superannuation guarantee payment would be due at the same time as the employee's salary or wages are paid, whether that's weekly, fortnightly, or monthly. This change is scheduled to take effect from 1st July, 2026. This is a fundamental shift designed to improve the retirement savings of Australians by ensuring superannuation is paid more frequently and reducing instances of unpaid super. The Impact on Business Cash Flow While the benefits for employees are clear, businesses must prepare for the implications this change will have on their cash flow management. 1. Increased Frequency of Payments The most immediate change is the move from a quarterly superannuation lump sum to frequent, smaller payments. This requires: Tighter Budgeting: Businesses will need to forecast their payroll and superannuation obligations with greater precision across shorter intervals. Reduced Quarterly Buffer: The current system allows businesses to hold onto super funds for up to three months, acting as a small, temporary cash flow buffer. This buffer will disappear. 2. Enhanced Compliance Requirements With superannuation payments tied directly to each pay run, the administrative burden and the risk of non-compliance increase. To manage this effectively, businesses should: Review Payroll Systems: Ensure your current payroll software can automatically calculate and process super payments concurrently with wages. Establish Clear Processes: Define a robust workflow that ensures superannuation is remitted to the fund on the same day the net pay is transferred to the employee. Strategies for Managing the Change Proactive planning is essential to smooth the transition to Payday Super. Consider the following strategies: Cash Flow Forecasting Develop detailed weekly or fortnightly cash flow projections that explicitly include the super obligation for that period. Use historical data and future projections to identify potential shortfalls. Separate Superannuation Funds Immediately transfer the calculated super liability into a dedicated, separate account on pay day. Isolate super funds from operating capital to avoid accidental spending. Negotiate Payment Terms Evaluate supplier payment terms to align cash outflows with increased payroll frequency. Extend credit terms where possible to balance the new frequent super outflows. Review Accounting Software Leverage modern accounting and payroll solutions that automate and integrate wages, PAYG withholding, and super. Consult with a financial advisor or bookkeeper, such as 360 Accounting Services, to confirm system readiness. Next Steps and Resources This new regulation will have a significant impact on financial operations. We recommend that all business owners and payroll managers review processes and seek guidance. Useful Documentation For detailed information on the new requirements, please refer to the following: Official ATO Guidance: ato.gov.au/paydaysuper The move to Payday Super is an inevitable change. By understanding the implications for cash flow and implementing strong financial management practices today, businesses can ensure a seamless transition and remain compliant when the new rules come into effect at Place.
