Using Social Media for Businesses - Part 2

Social media has grown tremendously popular over the decade. Its reach is enormous that almost every single man of the world’s population has an account on Facebook, Twitter, Flicker, and MySpace. And why not? The advantages of having such accounts cannot be underestimated. People are able to reach old friends from several years back and friends who are at the other end of the globe. Individuals are able to connect with families and relatives that they have not even met. People, in fact, use the social media to start up their small online business. And with this last statement, why not business owners acknowledge the fact that the social media can also be used for their transactions?


Here are important tips to consider when using social media for one’s small business.

1. Before anyone signs up their business for a social media account, it is important for the owner to assess the type of product that is being sold or promoted. And chances are, there will be a greater market that can be targeted since there are millions who have such accounts.

2. Now is the time to sign up for an account. Facebook is the site that allows the business owner to create a business page. In fact, this can be done through the personal account of the owner. And when this is the case, the owner can more conveniently manage the account and not miss out on notifications and other updates.

3. Engage a social media manager. When one signs up for a number of social media sites, keeping up with all the notifications can be a daunting task. So before inviting friends and “likers”, it would be better to sign up for free to HootSuite and Ping.fm as these allow the user to manage all accounts in a single site. Messages are scheduled for deployment so that the user can still do other things while still getting advertised. And when the page has already reached greater transactions, then SproutSocial.com, which charges $49, may be contacted.

4. Next thing to do is to post updates. No user will follow a site that is empty and has nothing to show or sell. Updates would have to include profile of the company, situation of the industry, and some pictures and blogs for the guests to see and read.

5. Finding friends and followers comes next. Friends can be found by simply typing in some keywords. For example, if the target followers are pilots, then “pilot” has to be entered. The word “flying” can also be searched.

6. Engage followers and friends. It is important to remember to make friends and connections a primary priority. When inviting friends and followers, establishing rapport is very important. For example, when requesting to be a friend or follower, write a simple message introducing oneself.

7. Provide support. When client has a complaint or some comment, it is best and proper to answer that issue. This would make the customer or follower feel comfortable and valued.

8. Notice feedbacks. The customers are the owner’s patrons so value each feedback they have and base improvements on these.

Every business will grow when engaged in social media sites. And when this happens, there would now be the need for bookkeeping accounting. And when thinking about accounting software, think Shoebooks, Australia’s leading provider of accounting and invoicing software.

Business Conditions Continue Worsen Ever Since 1990's

The trading conditions have already been at their worst levels for about 14 years now. And this has led the business owners in believing that the economy is desperately in need of more interest rate reductions.

An appalling result in the latest survey of the Australian Chamber of Commerce and Industry (ACCI) on investor confidence showed that most businesses are stabilizing at low levels while some others are “sinking to contractionary territory”.

According to the ACCI Director of Economics and Industry Policy, Greg Evans, "Overall the survey shows that mainstream Australian business is under significant pressure."


It was during the December quarter that the sales and profitability sank. To add to that, employment and investment intentions proved poor especially in the coming months.

"Businesses' view of their own conditions are at their lowest level since the survey began some 14 years ago, in 1998. Clearly this economy needs the benefit from further reductions in interest rates, and we would expect to see that in the first half of this year," added Mr. Evans.

The next meeting of the board of the Reserve Bank of Australia has been set on February 7 wherein the financial markets are expecting them to cut rates. However, the increasing “tug of war” between businesses and Australian banks remain a major concern of businesses. This war is over the two entities’ willingness to pass on the rate reduction’s full impacts.

"It underlines the lack of real competitive pressures in the Australian banking system," continued Mr. Evans.

The same survey also revealed that the largest constraint on investment remains to be taxes and government charges. This is followed by insufficient demand in Australia.

With these difficulties being experienced by businesses in Australia, there is a need for them to utilize accounting software for businesses and engage the services of online accounting to ensure that the processes and transactions are accurate. And in today’s time, there is no more place for assumptions in the business world.

Using Social Media for Businesses - Part 1

Do you have a small bookkeeping accounting business online?

With social media sites reporting users in billions of numbers, one cannot be wrong to presume that social media sites have gone viral.

Nowadays, with these billions of social media users, having no social media presence could now mean a slow death to your site. If you have a small business accounting software and you haven’t brought it into the social media craze, this would not do anymore.

Now, having no online social media presence even for those big accounting on line businesses is no longer an option as having a website and online presence is not anymore enough in this competitive world of internet marketing.


So here are some tips or ways on how to use social media for businesses:

1. Review and Identify Your Assets. Before engaging in online marketing or social media marketing and engagement, the first thing you should do is try to identify and assess what is your asset. What are you trying to promote? In this way, you can determine who your target audience would be.

2. Proactively Post and Tweet. Proactively post or tweet questions that ask for customers’ thoughts on specific product ideas, marketing strategies, or anything else that is relevant. And when you get a response, dig deeper. Make any initial feedback when you get into a conversation and try to create something real from the dialogue. In this way you will get conversation that may go on for some time which will make your conversation active and be noticed not only by other users but also by search engine crawlers.

3. Proactively Post Updates. Provide valuable relevant information about your business or people enjoying your business. This can be in the form of pictures or videos. On YouTube, you can post videos of your business, customer experiences, and encourage customers to make their own. You can also ‘favorite’ other YouTube users’ videos and they will end up on your page. Remember to keep your updates relevant, interesting and attractive. In this way, other people will like and follow your page.

4. Post Fun Contests, Polls, And Questions. You should try to post interesting and fun contests, polls of questions that would let your customers know you value their opinion, and that they have a personality.

5. Leverage your Website’s Content. In order to draw more traffic to your website, put your website's content to work. Spread the word by encouraging visitors to share content they enjoy. Install a widget, such as AddThis, that automates linking to popular sites, in order to promote the sharing of your site's content.

6. Look for Friends And Followers. Search keywords to find followers and friends. Search your town and surrounding areas as well to find key influencers, news outlets, bloggers, and city officials. Also, search for large players in your market. Join in their conversation. If they share your posts, you have the potential to reach thousands. On Google+, post a comment on one of their posts immediately. On Twitter, mention them in a post immediately. You can also make a comment on one of their posts or simply say that you look forward to following their great content. Try to make them trust you.

7. Post relevantly. If you want a more useful feedback, you should post and tweet questions that are relevant to specific areas the business explores. Feedback in response to the question “What new online accounting should we offer?” will be more valuable than compliments on how nice your bookkeeping accounting is already are.

8. Provide Discounts. Offer discounts. In this way, people will follow you then and they also will buy.

9. Build Brand Loyalty. By providing quality and dependable goods and services or provide something for free, be it information or community, you can enable people to like your brand and then buy from it in the future again.

10. Offer Support. Provide customer support. Immediately answer questions that are posted on your Twitter or Facebook accounts.

11. Engage Friends and Followers. Build a relationship with people, not pitching your service or product. Provide them with story ideas and leads that have nothing to do with your business. Engage them in conversations and if possible give them a personal comment or responses. In this way, you can gather more friends and followers.

12. Interact With Visitors. Have a conversation with your visitors. Even though they are not your customers and just posting comments or questions, engage them and have a real conversation. Maybe in the future they will become your customers.

13. Monitor Trends. Find out more on social media. Use tools that allow you to watch trends unfold. In this way, you can determine what’s cool and where the demand is almost instantly by scanning Facebook and Twitter with simple tools like Topsy.

14. Reach Out.Reach out to people who you know that like you. Contact them, simply express your gratitude, invite them to your next product presentation or send them your products for testing purposes.

15. Harness your expertise. Share the knowledge you've gathered through your trade. This could go a long way toward boosting your brand.

Australian Share Market Up 0.4 percent

A two percent rise was seen in the Australian shares as it closed this week. This was after the yields on government debt issues by Italy and Spain had fallen to their lowest. A total of 10 billion euros in bond were sold by Spain while Italy sold 12 billion euros of bills.

"Spain’s auction was met with strong demand at resulting yields lower than the same maturities late last year, while the Italian auction also saw yields on one-year maturities falling to their lowest levels since June 2011. Obviously investors welcomed these developments,” said Cameron Peacock at IG Markets.


Also, the European Central Bank (ECB) had kept interest rates unmoving in the early part of 2012.

Most sectors ended positively but miners, industrials, and energy had it higher. The retail sector also kept up as it added 0.1 percent.

BHP Billiton shares went up by 0.6 percent while Fortescue Metals Group raised it shares at 1.9 percent.

“Commodity prices overall remain robust...however, mining equities face sentiment headwinds. The market continues to price in further downside, which also creates an opportunity as equity prices aren’t challenging.” This is according to mining-sector strategists at Japanese bank Nomura Securities.

Energy firms, on the other hand, also performed well. A rise of 1.5 percent in the shares of Woodside Petroleum was seen while a 17.7 percent increase in shares was experienced by Linc Energy.

JP Morgan, US banking giant, released its earnings report Friday night. A profit downgrade was experienced by QBE, an insurer, which dragged the Australian market lower. Its shares went down by 3.1 percent at $11.

"With a company like QBE, it could take them nine months before they crawl back up again," said Ord Minnett Equities Consultant, Ian Merrick.

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Why Cloud Computing is a Must for Businesses?

Cloud computing is increasingly becoming popular among business owners when it comes to their accounting software for business. In fact, Phil Wainewright, the vice president of Eurocloud, is saying that the norm now for businesses is cloud computing.

Therefore, it is necessary to adopt this accounting software for small businesses in order to get the best and maximize every company’s earnings.

Bill Claybrook who is the principal analyst of New River Marketing Research in Massachusetts says that cloud computing must be a technology that companies must explore. So why is this so?

1. Cost savings is a primary advantage. When a company buys data servers, coolers, and other equipment to save data, it spends too much compared to using cloud computing. Reviewing savings potential is also very convenient making profits even higher.

2. The business gains agility. There will be times in a company when it would need more servers and more data storage space. And only cloud computing can provide this instantly without having to spend that much.

3. Data center flexibility is another advantage. Existing data centers can be managed by cloud computing.

4. Security management of mobile devices is managed. This can involve the mobile devices that are being used by the employees.

5. Maximized time and workforce is an added advantage. While cloud computing can do a lot for a company, IT staff can be allowed to focus on new and more pressing concerns in the business.

Mr. Wainewright says "It's growing somewhere between - depending on who you talk to - 25 and 40 per cent a year. [It] is going to become mainstream very fast.” So every business owner has to use this accounting software.

Survey: Small Business Owners Worried as Running Cost Rise

The soaring of running costs are driving small business owners to become more pessimistic. However, they are seen to bounce back according to a national happiness survey.

Only 48 percent of businesses are expecting an improved performance in the coming 6 months, according to Westpac Local Business Sentiment Survey. Furthermore, it said that this figure is 11 points down from the May survey. Among those that cause the biggest worries are increased costs and declining revenue.

From just 33 percent, there are already 40 percent of respondents who now believe that it is becoming more difficult to run a business.

From the survey, it has been found out that 20 percent of businesses are being affected by managing costs such as electricity. This is higher than the figure six months ago according to Westpac Victoria General Manager, Julie Rynski.

"It is being seen as one of the greatest challenges for small businesses. It has meant they are not feeling as confident as they were. The level of optimism has certainly declined but not as much as it has in other states,” said Rynski.

According to Narelle Telford, Red Parrot Café co-owner in Gippsland town of Nojee, customers are opting to share their meals or buy snacks that are a lot cheaper. As a result, his business is also going through a tough time.

"They are very nervous about spending and we don't know how long that is going to go on for, of course,'' Ms Telford said.

"We've still got customers coming in, which is lovely, but they are spending less. The bottom line is at the end of the day the till doesn't hasn't got as much money in it to pay our bills. When you are in small business you just have to make the most of it and just think of ways you can deal with any situation,'' said Ms Telford.

From ranking among the happiest businesses in the nation six months ago, Victorian businesses are now at rank 56.

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Australian Government Surplus-Saving: 10 Key Points

With the Mid Year Economic and Fiscal Outlook statement revealing a drop in the revenue for the next four financial years amounting to a whopping $20 billion, Wayne Swan, Federal Treasurer, has been prompted to put a halt to spending in order to save the 2012-2013 budget surplus promised to the Labor.

"We are experiencing the worst bout of global instability since the global financial crisis,” said Mr. Swan.

Though the economy of Australia is seen by the Treasury to grow by 3.25 percent in the financial year 2011-12, Mr. Swan is still trying to illustrate the global economy and its impacts on Australian economy using the MYEFO report.


"Global economic and financial conditions have deteriorated markedly in recent months, and the risks to global stability from the European sovereign debt crisis have intensified. Global growth prospects have been downgraded markedly in 2012, with the euro area expected to return to recession. This has led to a weaker near-term economic and fiscal outlook for Australia since the budget and substantial reductions to government revenues,” said Swan.

Here are the MYEFO’s ten key points:

1. The Australian economy is expected growth in 2011-2012 by 3.25 percent. This same rate will be followed until the next financial year. But for 2013-2014 and 2014-2015, this growth will drop to 3 percent.

2. In 2011-2012, there has been a deficit of $37.1 billion. But in 2012-2013, this is expected to return to surplus of only about $1.5 billion.

3. Employment will not be doing much good as it is expected to grow in 2012-2013 by just 1 percent. For the succeeding years, this will be grown by $1.5 percent each year.

4. There is a big hole to fill in the tax revenue as this will have fallen over the next four years by $20 billion.

5. There is a deferral of automatic tax deductions.

6. People working away from home are receiving living-away-from-home allowance which is costing the government a dear amount of money. If changes in this area will be enacted, a good $700 million will be saved by the government in the next four years.

7. The government reducing co-contributions on superannuation will help the government save about $1 billion over the next four years.

8. Middle-class welfare has been applied by the government. Baby bonus will be frozen at $5,000.

9. A good $436 million will be raised over the next four years by adapting better data matching.

10. A 2.5 percent cut in spending by public service is called upon.

With these key points, small businesses may also have to be on their feet and be ready for changes. It would be best if they utilize an Australian accounting software or any reputable accounting software for business.

Australian SME Businesses Not Happy with Federal Government

An MYOB report reveals that about half of Australian SMEs are now dissatisfied with the federal government. The rage of these small and medium businesses has reached a three-year high. From just 31 percent during the last three months, the number of dissatisfied SME’s has soared to 56 percent recently.

Only 14 percent of the 1000 surveyed business owners in October say they are happy. This shows a decrease from the 27 percent last August.

According to Tom Reed, MYOB Chief Executive, business owners are a pragmatic group and they may be appeased if the government takes some straightforward measures.


“Business owners... go into business because they are passionate about delivering a product or service better. They don’t tend to have ideological views, but support clear policies that will strengthen the economy and remove red tape,” he added.

The state that has the highest dissatisfaction rating is Queensland at 65 pecent. Last March, this was only at 46 percent. On the other hand, Victoria has the lowest dissatisfaction rating of 41 percent which is still nine percent higher than the previous survey results.

"We call upon all political parties to stop ignoring the SME sector and start developing policies that will genuinely make business life easier," is the call of Mr. Reed.

The MYOB also found out that small business owners want some immediate action in the following:

• A good 69 percent want policies that simplify GST/BAS reporting processes

• Another 66 percent want more government investments in transport infrastructure in cities and states

• 63 percent want more funding for innovation, research, and development

• 61 percent want a “Buy Australian made” policy for procurements in the government

• And 61 percent want the carbon tax abolished.

“It needs to shore up business tax revenue shortfalls if it’s to meet its surplus promise, while at the same time stimulate non-mining sector business investment and growth,” said Reed.

“With the carbon tax legislation off the immediate agenda, the Gillard Government can take back the policy initiative and positively respond to the recent tax forum,” he added.

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Shoebooks is a premium provider of accounting software in Australia for SME businesses. Check out Shoebooks bookkeeping software and experience the advantages of our bookkeeping accounting services for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515     

SME Business Sales Raise in September, Eurozone Up Bailout Fund

According to the recent ANZ small business sales trends report, small business sales lifted for the fifth consecutive month in September. The report shows small business turnover increased by 5.2% year on year.

Based on ANZ data on the value of credit, debit and Eftpos transactions through its merchant terminals and ANZ card transactions processed through other systems for businesses, at least two-years-old with annual turnover less than $5 million.


ANZ Head of Australian Economics and Property Research, Ivan Colhoun, said year-to-date growth is "fairly flat" at 1.7%. "And with headline inflation running at around 3.5% y/y in 2011, this implies real (inflation-adjusted) small business sales growth is still relatively weak in September," says Colhoun.

The report also shows that it is because services and trade sectors outperformed retailers, with small retailers recorded 2.6% year on year growth versus 6.8% annual growth for non-retail and services small business.

Meanwhile, the Eurozone is set to shore up its bailout fund, with German MPs saying the plan could boost the fund's lending capacity to more than one trillion euro ($A1.34 trillion). A document obtained by The Associated Press shows the currency zone wants to boost the 440 billion euro ($A587.65 billion) bailout fund by offering sovereign bond buyers an insurance against possible losses and by attracting capital from private investors and sovereign wealth funds.

Eurozone governments hope that the enhanced European Financial Stability Fund, or EFSF, will be able to protect countries such as Italy and Spain from being engulfed in the debt crisis. To do that, however, it needs to be bigger or see its lending powers magnified. Leading German opposition MPs, who were briefed earlier on Monday by Chancellor Angela Merkel on the plan, said the fund's lending capacity will be boosted "beyond one trillion" (euros).

But the draft document by the eurozone working group - which Germany's government was sharing with key MPs on Monday - did not provide a headline figure for the bailout fund, stressing "a more precise number on the extent of leverage can only be determined after contacts with potential investors" and rating agencies.

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 Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515

Auditor-General Could Spell Trouble for SME Businesses

According to the opposition, it could mean disaster for businesses as there is a move to sharpen the teeth of the auditor-general.

The private member’s bill of independent MP Rob Oakeshott that targets to give the auditor-general greater powers to follow money trails and to ensure the government gets its money is being debated by the Senate.

The audits will be extended to government business enterprises such as NBN Co. should the bill be passed.

Furthermore, the bill will also allow the investigation on how federal money has been used by states and territories and assess the performance of contractors such as home insulators.


Due to the risks of audits, many small and medium sized enterprises may already opt to avoid government contracts. This was told to the Chamber by Liberal Senator Mathias Cormann. With this, those who will tender for such contracts are only those companies that have resources that are enough to comply with an investigation.

"It will get rid of the pesky competition from small and medium tier businesses who will just give up because there is so much red tape involved," said Cormann.

On the other hand, Senator Nick Xenophon believes in the importance of improving the scope of the auditor-general particularly in ethics, and effectiveness of government programs.

According to Labor Senator Mark Bishop, the bill contains the appropriate restrictions of the extent of power of the auditor-general.

"It's not a frolic on its own by the auditor-general. It's not able to cavalier and investigate near and far, the audit is limited,” he said.

The Commonwealth is the primary focus of the auditor-general.

For now, debates continue on the Auditor-General Amendment Bill 2011

Source: www.smh.com.au

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks accounting online software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515 begin_of_the_skype_highlighting              +613-9818-1515     

Fair Tax Scheme: Lift the GST

Despite the Australian government's edict of the Goods and Services Tax (GST) issues as taboo subjects in the recently held tax summit, business groups are still set to ignore the edict by advocating for the lifting of the GST and changing the mining tax.

Moreover, accountants, Australia accounting software providers and the common Australian citizens stated that the lifting of the GST rate could help make the Australian tax system fairer.

The Goods and Services Tax (GST) is a broad sales value added tax of 10% on most goods and services transactions in Australia.


According to yourmoney.com.au survey, data showed that there is a strong demand for the simplification of the tax system. Some common suggestions were the introduction of a low flat rate of tax, lifting of the GST, and compensation of low income earners – who are typically spending a much bigger percentage of their money on basic goods and services.

According to a research by CPA Australia, one of three professional accounting bodies in Australia, if the GST is increased to 15 or 20 per cent and along with cuts to business and personal tax rates, this would improve the economy and raise the standard of living.

Moreover, according to the Australian Industry Group, increasing the rate of the GST - or a broadening of its application to more goods and services is a way to pay for the removal of inefficient state taxes.

The Gillard government has flatly decided changing the GST. They even declared it off the discussion at the recently held week's two-day tax summit in Canberra.

The 2-day Federal Tax Summit in Canberra held last October 4 and 5, 2011 had focused on its own agenda, including helping businesses hit by the two-speed economy. Moreover, Prime Minister Julia Gillard and Treasurer Wayne Swan have marked changes for businesses squeezed by the patchwork economy, with plans to alter tax treatment of losses.


The summit was attended by 184 people, which includes delegates from business, unions, community groups, and state and federal politics. It was held as part of the post-election deal with country independents to support Ms. Gillard's minority government.

PM Julia Gillard Flags a Business Tax Shake-Up

After receiving criticisms against her government, Prime Minister Julia Gillard vows to bring new flexibility into the tax system.

Just last night, Julia Gillard made more changes to business tax rules in response to calls for the reduction in company tax from 30 per cent to 25 per cent.

Although Gillard did not give specific details as to the changes, she wants delegates during next month’s two-day forum in Canberra to discuss options for a tax system that would better support businesses.

According to Gillard during the Australia Industry Group dinner in Canberra, the aims of the changes include "removing distortions, lifting barriers, delivering flexibility ... (and) encouraging enterprise."



Though Gillard does not share the values of British Prime Minister, Margaret Thatcher, she quoted the latter by saying, “there is no alternative”.

The keys to boosting economic growth in the non-mining sector include lower company tax rate, reduced red tape, and greater focus on entrepreneurship.

"We need to keep investing in and developing our skills and capabilities. The Australian economy is at a turning point. We are paying for a lack of emphasis and effort given to lifting productivity over many years,” he said.

According to the Prime Minister, "no system of policy settings is more central to business planning than business tax."

Source: Perthnow.com.au

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Shoebooks is a premium provider of software for accounting for SME businesses in Australia. Check out Shoebooks Australian accounting software services and experience the advantages of our online invoicing software for your business. Shoebooks is located at Unit 12, 118 Church Street, Hawthorn Victoria 3122, Australia. Call Shoebooks at +613-9818-1515.

Make Your Business Recession-Proof

The business trend will never be the same all throughout. There will be times when businesses will do well. However, there will also be times when businesses will have tough moments. Among these tough ones is the time of recession.

At present, it is the Western world that is experiencing this pinch. However, individuals have to be cautious this early as this recession will eventually flow out into the Australian economy and to individual businesses.

What is important during this time is that business owners have to make sure that not all revenue comes from one source. That is, if 80 per cent of a business’ revenue is just from one client, the risk when this client goes away is very high for the business. It may also not be very wise to diversify just yet.

Instead of expanding or growing the business, it may be wise to just prepare for the rough times that are coming. Here are among the things to do to recession-proof one’s business:

1. Build a cash flow buffer

Cash flow is very important. Eventhough a business has much cash to use, it may be wise to make a cash buffer of at least 3 months overheads. This will protect the company and spare the owner from unwanted stresses brought about by market volatility.

2. Bring forward receipts and defer payments

It is important to convince clients to prepay. This may be done by implementing discounts, credit facility, and retainer.

3. Reduce debt exposure

It is important to consolidate debts to see how much needs to be repaid. In this case, if the interest rates are higher, the debt finance will also be more expensive.

4. Migrate from fixed to variable costs

It will help to reduce overhead costs in absolute terms and to migrate from fixed to variable costs. For example, contract labor is cheaper than maintain everyone in the payroll.

5. Manage employment leave exposure

It will be necessary to convince employees with chunks of leave entitlements to just use these instead of letting the business give out a lump sum.

Decision cycles may have to be shortened. From using the monthly or bi-monthly system, a shift to weekly will be more helpful. This is also considered to be among the important and efficient moves when it comes to cash flow management.

Source: SmartCompany.com.au - How to recession-proof your business »

Carbon Tax - Design Elements and Business Preparations

The carbon tax has just been recently introduced by the Australian government. This means that in order to transform Australia into a “clean energy” economy, there will now be the pricing of carbon dioxide and other “greenhouse gas emissions”.

Though it is yet to be introduced and approved by both Houses of the Parliament, it is expected to be implemented by July 1, 2012.

Design elements of the carbon price mechanism:

• It is expected to be started on July 1, 2012.


• Fixed carbon price for the first three years will be $23, $24.15, and $25.40, respectively.


• By July 1, 2015, a flexible price phase will be introduced. By then, the price of carbon will be determined by an Emission Trading Scheme (ETS) wherein a transitional cap and floor are applied.


• The revenue coming from the sale of carbon permits will be utilized for encouraging lean energy activities and easing burden of transition costs.


• Different sectors will be given assistance through direct and indirect mechanisms.

Furthermore, the following points are important:

- A fixed price will be imposed on carbon tax for the first three years and then flexible prices will follow on the 4th and succeeding years.
- The fixed price is designed to introduce more and flexible prices from 2015 onwards.

What does it mean for business?

It is expected that risks will be numerous in the first year as businesses will still be aiming to learn and understand the system. With these risks, thorough planning and early action will be needed to maximize the opportunities brought about by carbon pricing.

The main effect of the carbon pricing is the increase in cost of electricity and other energy sources. This will need businesses to learn how to identify and manage the strategic, operational, financial, and reporting issues. The requirements are as follows:

• Understanding of the issues


• Assessment of the effects of carbon pricing


• Management of carbon liability


• leverage of the opportunities including assistance and transitional arrangements


• robust governance structures


• strong data integrity, accurate reporting and credible disclosure processes.

There will be a need to examine the financial reporting implications of the climate change plans. It is the potential effect on asset impairment testing that is the most important reporting issue.

The financial report will have to state if the carbon price could potentially impair the value of assets. There should also be statements of the assumptions made and the identified nature of key uncertainties.

Australian businesses are going to be directly affected by these climate change plans. The best thing to do while the preparations are being made by the government, these Australian businesses should also be preparing themselves for the changes that will be brought about by carbon tax.

Source: Preparing for Australia's Carbon Tax - CEO Forum Group »

More Australian Businesses Now Having Online Presence

More Australian businesses are moving online. How about your business?

There is an increase in the number of Australian businesses that are now online. MYOB conducted a research which has revealed that businesses now online have risen from 35 per cent to 39 per cent last November. Another 22 per cent are planning to create their website in the next 12 months.

Compared to the 22 per cent that do not have a website, almost a third of 1000 respondents say that there is increased revenue with being online.

“Today consumers look online first when making buying decisions,” said Tim Reed, MYOB CEO.

“If your business can't be found via a search engine, it's as if you don't exist,” he added.

Western Australia online businesses lead at 49 per cent while NSW and Victoria are at 41 and 40 per cent, respectively.

However, even with these results, people are still not convinced at using the internet for their advantage. This has been revealed as 57 per cent of businesses do not use the internet to promote and sell products. 24 percent do not have any plans of making a website while the remaining do not believe in the usefulness of the internet.

“While only 26 per cent of business owners believe their competitors are ahead of them when it comes to the online economy, I'm concerned for Australia's future international competitiveness if business owners don't do more to embrace the online economy,” Mr. Reed said.

“It's important Aussie business owners take action now to make sure they don't lose market share to global competitors,” Mr. Reed added.

Having the right skills and knowledge are necessary to taking the first step in getting businesses online.

About one in three businesses believe that they are lagged when it comes to using the internet for business, 35 per cent think they are not using the internet enough for marketing purposes, and the remaining 31 per cent say they don’t use online search engines to market their business.

Source: Herald Sun »