Christmas Payroll Tips

Christmas Payroll Tips

Christmas Payroll is one you may need to give some extra thought to. Regardless of the holiday season, you need to pay your staff. And with extra public holidays there are a few things to watch out for. Here are some tips to help you along. Allow for Christmas and New Year bank processing. Check with your bank what their arrangements are for transaction processing over Christmas. For instance, here is how Commbank handle things:

Christmas Day & Boxing Day processing - Transfers made before 6pm on Friday 23 December 2016 (Sydney/Melbourne time) should get to the recipient's account by Thursday 29 December 2016 (this can depend on how long the other institution takes to process the transaction).

Transfers made between 6pm on Friday 23 December (Sydney/Melbourne time) and 6pm Wednesday 28 December 2016 should be credited to the recipient's account by Friday 30 December 2016.

New Year's Day processing - Transfers made by 6pm Sydney / Melbourne time Friday 30 December 2016 should be credited to the recipient's account by Wednesday 4 January 2017. Transfers made between 6pm Friday 30 December 2016 and 6pm Tuesday 3 January 2017 should be credited to the recipient's account by Thursday 5 January 2017.

Once you know how your bank will do things, you might need to make some adjustments to your pay cycle in order to ensure your staff is paid on time. For example, you might decide to bring forward your Christmas Payroll dates so as to avoid the Christmas banking holidays. Let your staff know what to expect, if needed.

Get people's pay right. When calculating your christmas payroll, make sure that your staff is paid correctly for holiday pay and leave loading (if applicable). If staff will be working on Public Holidays check ahead to  the penalty rates right. You can check the correct rates on the Fair Work Ombudsman's web site.

Plan your rosters. It's worth putting a bit of time and effort into planning your staff rosters for the Christmas and New Year period. Think about which staff would be best for particular shifts so you control your costs but have reliable staff rostered and can still deliver good customer service. The least cost staff may not be the best option if you want to make the most of busy trading days over the holidays.

Emergency Contacts. Especially if you are using technology (rostering systems, accounting software etc), be sure you have details of who to contact in case of a problem over the Christmas period. Make a note of any altered hours for helpdesks, and be sure to have their contact details somewhere easy to access.

You can find more tips for how to manage the Christmas Holiday season here.

Current Issues for franchise accountants

What do franchise accountants talk about when they get together? Top of the list at a recent gathering of FAN members were franchise payroll issues and pre-purchase advice. Here's a recap of the issues we covered at our meeting on 19th August 2016.

The Payroll Problem

Garth Belic and Richard McLean from Keypay spoke about the state of play regarding wages compliance in franchising, and payroll solutions that accountants can offer franchise clients. Garth pointed out the reality that it is difficult for franchise owners to get payroll right if they rely on spreadsheets, manual entry of wage rates and allowances, and data entry from time and attendance records.

The franchise accountants agreed that this is a great challenge for many small business clients. After a robust discussion the feeling was that, while MYOB and Xero meet the needs of some, for many in the franchise sector an 'end to end' payroll solution (such as Keypay) is the way to reduce risk of non-compliance and improve audit trails.

Franchise Resales

Matthew Page from Link Brokers spoke about the franchise resale market. One of the key take aways was that expert advice is vital to avoid making costly mistakes when you buy a franchise. Matthew also pointed out the risks to franchise business values when a brand over-expands or when there are financial concerns within the business.

Franchisor Insight

The Franchisor Insight session  is one of the most popular items on the agenda when FAN members meet. This one was no exception, with a thorough and informative talk by Mark Zilm about the Refresh Renovations franchise.

The purpose of this segment is to introduce accountants to the various franchises in the market, and help them understand the model and financial issues. This helps the accountants provide relevant advice and insights to prospective and established franchisees.

Pre-purchase Reviews

Several speakers highlighted the importance of prospective franchisees obtaining an independent pre-purchase review of the financial side of their chosen franchise.

Following work done by Peter Knight and Rob McAdam, members of the group learned about a tool to help them provide streamlined advice to prospective franchisees.

Financial Stress

Not all franchise businesses go well. With this in mind, Peter McLaughlin (Redchip) spoke about recent cases where franchisees have found themselves in financial stress. Shabnam Amirbeaggi (Crouch Amirbeaggi) highlighted some of the franchise insolvency cases she has dealt with, and pointed out that early intervention can often help.

The day closed with information about the upcoming Franchise Accountants Conference.

Thanks also to Bentley's Accountants NSW for hosting our meeting.

Payroll solutions for franchisees

Payroll and employment conditions are two of the more complicated aspects of running a business. And, as recent examples have highlighted, mistakes can be very costly. This article highlights four areas of payroll management for franchisees to be aware of and suggests ways to minimise the risk of making a mistake.

Find the right award

You will need to ensure that your business is compliant with the relevant modern awards and national employment standards. These govern terms and conditions of employment and are legally enforceable.

A good starting point is to learn about the award system and find out which awards apply to work done in your business. You can get this information from your franchisor, an industry association, the Fair Work Ombudsman, or an employment relations expert.

Learn more about the Award system from - Fair Work Ombudsman

Budget for appropriate wages

Cost control will be important for the success of your franchise, but you'll still need to budget for the necessary wages, overtime and allowances. It's worth considering whether you will be able to attract and retain good staff if you pay only minimum wages.

A good way to work out a wages budget is to the franchisor about recommended staff levels and average wage rates. Based on this information your franchise accountant can help you estimate the wages bill in your franchise.

If you’re buying an existing business it’s a good idea to have a lawyer who is experienced in employment matters look over the employment terms and conditions of the staff you will continue to employ. They can also advise you of how to handle matters such as accrued leave and change of employer.

Keep payroll paperwork

Good payroll documentation will help avoid misunderstanding between you and your employees. That’s why it’s important to put employment agreements and other employment matters in writing, and get employees to sign off on company policies.

But the paperwork aspect of employing people can become a burden if you try to do it all by yourself. The good news is that there are now several web based payroll solutions.

These services are usually provided by employment lawyers and provide templates for employment contacts and letters, and expert advice by phone. Your franchisor or industry association may provide such a service, or search online for HR advisers.

Correctly apply the awards

Because many awards are complicated it can be genuinely tricky to comply with them. For instance, to calculate payroll correctly for hourly paid staff you need to keep track of hours worked and apply the correct wage rate, allowances and Superannuation rate. You must also keep accurate records and issue correct payslips.

As a result, one of the challenges franchise owners face is that there’s significant scope for human error in the payroll process. This is especially so if you track information with a combination of manual records, spreadsheets, a wages book or your accounting software. As the employer, however, you still need to comply with the law and get payroll right.

Fortunately, technology has come to the rescue in the area of payroll management!

Even if you are a small employer, you can make use of simple and cost effective payroll management software. Some of the most attractive payroll solutions handle the whole process including staff rostering, recording hours worked, calculating pay and issuing payslips. These are a genuine time and money saver for franchisees. For more information click here

Please be aware that Payroll and Award compliance are complicated areas and you should always get advice for your own circumstances from a suitable professional. Your franchise accountant can help you get the help you need.

Client Events 101

Do you want to grow your accounting practice? One of the most effective ways to do this is by hosting regular client events. Of course, client events aren't just for clients - the idea is to attract and invite non-clients who might one day use your firm or refer work to you. The sort of event we mean here isn't going the footy or cricket, or a concert. What we mean is a function that combines networking with information, and some light food.

Client events of this type can be good for your practice in several ways: not only can they help increase your fee base, they also enable staff to develop their communication skills and teamwork.

Our experience is that an accounting firm will get a lot more out of events than the new clients and goodwill they generate. And of course it doesn't need to be you who puts it all together - look for a team member who would love the opportunity to work on the project.

If you're interested in running a client event, you'll find some tips in this article.

Why run client events?

Client events can be a good way to grow your accounting practice. Not only do they strengthen existing relationships, they can attract those curious "non-clients" who might be encouraged to engage your firm as a result of the event.

But practice growth isn't the only benefit. An event can also help staff develop their skills.

Hosting an event will galvanise your team into action in areas different from the usual routine. You may find the event helps develop teamwork as team members come together in pursuit of a common goal. Some team members may be prompted to improve their own skills in areas such as public speaking, networking or building client relationships. You might even discover hidden talents amongst your team.

Who to invite?

A client event is a brilliant focus for you to expand the firm's database of contacts. Naturally, the guest list for your event should include current clients. But you can (and should) also invite potential clients and other local business people.

However, we suggest you don't stop with clients and potential clients.

Events are also a good way to develop your firm's relationship with people of influence. By 'people of influence' we mean the professionals who may never become clients but who could refer clients to you. People of influence include business bankers, lawyers, financial planners and mortgage brokers.

How to run your event

Here are 7 building blocks we've identified to help you and your team put together a successful client event.

1. Decide on the purpose of the event. This includes who you’re running the event for (the target audience), and the theme for the event. Once you know this, you can decide on the topics for presentations, and who you would like to have speak at the event. By the way, when it comes to topics do choose something that would be interesting to clients and others you want to invite.
2. Invite speakers. If you're having an outside speaker for the event, be sure to invite them well ahead of time. Let them know the purpose of the event and ask them to speak on the topics.
3. Build a database.  An event is the perfect opportunity for you to build and tidy up your marketing database.
4. Send invitations. There are various ways to send invitations, from simple emails to email marketing tools such as Mailchimp, or event software such as Eventbrite. (Don't forget to include RSVP details). We always send the invitation at least twice, and also send a reminder the day before to people who have registered.
5. Organise logistics. This means food, room layout, name tags, handouts, a run sheet, gifts for your speakers and so on. It also includes having one or two people on hand on the day to warmly welcome attendees and keep things running to schedule.
6. Show time! Every event is a little different, but we tend to include some of  the same basic elements every time. This include a welcome and brief introduction about the practice, time for networking, time to eat (especially if a plated meal is served), and a wrap up. Be sure that people from your firm introduce themselves and mix and mingle with the attendees.
7. Follow up. After the event, send a 'Thank You' email to attendees. You might also consider setting up a coffee catch up with some of them.

Planning a client event for your firm? To find out about franchising topics we speak on please contact us

Franchise Networking Event

FAN member firm MBC Accountants in Orange, NSW, recently held a franchise networking event. It was a huge success! Following the event, local franchise owners have enthusiastically registered to be part of the MBC Franchise Networking Forum which will run over the next 4 months.

Ben Wright, a Director of MBC, said:

"We wanted to raise awareness in our local area that we specialise in Franchises. Better still, that there is a movement called the Franchise Accountants Network that we are a part of.

So, the idea was hatched to hold an Franchise Night. We invited franchise owners in the area, as well as the banks, and several solicitors who work in the Franchisee space. What a great success this was!"

At the Franchise Night, Ben spoke about MBC, and introduced the concept of the Franchise Accountants Network. He explained why MBC became involved and how they we can help franchisees.

Peter Knight, who came up with the idea of the Franchise Accountants Network, gave real insight into the franchise world, and what he sees as the 5 Key Elements to Business Success. Peter gave a talk entitled "5 Essential Elements for Business Success".

After the event, Ben commented, "There is so much to be gained when bringing business (franchisees) and professionals together who have a commonality amongst them. The networking opportunities alone made their attendance worthwhile. The feedback today has been awesome. The banks loved it, the solicitors loved it and the franchisees want more."

MBC's next initiative is to start the inaugural Franchise Networking Forum. It starts in 2 weeks (Late September 2015) and 10 franchisees have already signed up.

To find out more about the franchise networking events in Orange, contact Ben Wright at MBC on02 6362 0988 or via their website. 

Franchise Fit Outs

Following is a guest post on the topic of Franchise Fit Outs by Peter McLaughlin, who is a lawyer experienced in franchising, and a member of FAN. One of the advantages of buying into a franchise is the ability for a franchisee to leverage from an established and successful business. In order to maximise the effect of the franchise system, those franchises that operate from retail premises such as a shop should have the same look and feel across all stores, highlighting the replication of a singular brand and product.

The Franchise Agreement will usually contain a provision as to whether the franchisor or the franchisee will fit out the shop to achieve this cohesive, predetermined look.

Fit Out by Franchisee

Where the franchisee is required to coordinate the fit out of their own shop, they must ensure that this is carried out in accordance with the franchisor’s specifications. A Fit Out Manual will usually exist outlining the franchisor’s precise requirements. Often a franchisor will also advise of an approved shopfitter that knows the brand and business and is recommended to carry out the work.

The final fit out must usually obtain the franchisor’s approval and pass a final inspection prior to commencing operation of the franchise. Franchisees are recommended to read the Franchise Agreement carefully to understand what is required of them in this process.

Fit Out by Franchisor

Alternatively, the franchisor may assert that they will co-ordinate the fit out on the franchisee’s behalf. In this circumstance franchisees should ensure that they are involved in the process and check that the quotes of the shopfitter are reasonable.

It is also common for franchisors to supply a “turnkey” package. This is when the franchisor grants the franchise, supplies a fully fitted out shop and turns over the keys to the franchisee to operate, all in return for the payment of a fixed amount.

What Happens in the Event of Relocation?

Most site-based Franchise Agreements allow for a franchisee to conduct business only at a specified location. The agreement should however make provision for the situation where the premises are destroyed, rendered unfit or if the lease expires or is terminated without fault on the part of the franchisee. The agreement would usually allow a franchisee to relocate, but will also impose conditions on that relocation.

What Should I Do?

Whether you are a franchisor or a franchisee, the key to benefiting both parties and getting the shop fit out right is clear communication.

Franchisees should ensure you read your Franchise Agreement thoroughly and understand what is required of you in regards to your shop’s fit out.

Franchisors should be open and very clear in regards to your fit out standards to avoid any confusion or misrepresentation of your brand.

For any assistance regarding the drafting or reading of Franchise Agreements please contact Peter McLaughlin on 3852 5055 or at peterm@redchip.com.au.