Dun and Bradstreet reported that in the March quarter, the average business payment terms increased slightly, by .2 days, to 54.1 days, although that was down on the March 2009 quarter figure of 57.4 days.
Larger companies, with 500 staff or more, had their payment terms increase by 2.1 days to 58.9 days in the last quarter.
Firms with 200 to 499 staff increased payment terms by 1.32 days to 55.3 days.
Companies with 50 to 199 staff paid in 50.3 days.
So while the economy improves, small businesses, in particular, have difficulty with cash flow, and are not getting their invoices paid promptly.
A survey of 750 small businesses by PricewaterhouseCoopers reported that 80% of small Australian companies hope that the Henry tax review will simplify business taxes.
A range of 56 Federal and State government taxes currently apply and 78% of those surveyed want a minimising of taxes – 60% want better deductions for capital outlays, 57% want state taxes to be consistent, and 54% want simpler income tax rules.
Small companies are in the position of having to cope with a strain on their cash flow due to the slow payment of their invoices, being bogged down with red tape and the cost of compliance requirements of a complex tax system.
We help small Australian firms by sending them qualified prospects from our Local Search facility in our Business Directory at no cost to them. Most of the 1.2 million businesses listed are small companies.
Monte Huebsch, CEO.
Wednesday, April 28, 2010
Thursday, February 11, 2010
52,000 new Australian jobs were created in January, but youth unemployment remains high.
The ABS survey revealed a seasonally adjusted unemployment rate of 5.3%, a much better result than was anticipated. Economists surveyed by Bloomberg had predicted that the unemployment rate would be 5.6%.
However, most of the new jobs were part time, with only 15,900 being full time.
The consensus of economic opinion is that the unemployment rate peaked at 5.8% last year, which was only a 2% increase during the economic downturn.
The better than expected unemployment figure will add pressure on the Reserve Bank to raise interest rates in March.
The youth unemployment rate in January is still high, at 24%. 65,000, aged 15 to 19 years, could not find a full time job. While this figure is a reduction from 79,000 in July 2009, it is still much higher than for all other age ranges.
The unemployment rate, in seasonally adjusted terms, in each state, was either level or reduced, except in the ACT which had a small rise.
Queensland: 5.9% down to 5.5%
NSW: 5.9% down to 5.6%
Victoria: 5.3% and unchanged
SA: 5.2% down to 4.4%
WA: 5.1% down to 5%
Tasmania: 5.2% and unchanged
ACT: 3.7% up to 3.8%
NT: 3.4% down to 3.3%
Small businesses are the main driver of new employment and we assist them by providing prospects at no cost to them from our Local Search facility in our Business Directory. Most of the 1.2 million businesses listed are small firms.
Monte Huebsch, CEO
However, most of the new jobs were part time, with only 15,900 being full time.
The consensus of economic opinion is that the unemployment rate peaked at 5.8% last year, which was only a 2% increase during the economic downturn.
The better than expected unemployment figure will add pressure on the Reserve Bank to raise interest rates in March.
The youth unemployment rate in January is still high, at 24%. 65,000, aged 15 to 19 years, could not find a full time job. While this figure is a reduction from 79,000 in July 2009, it is still much higher than for all other age ranges.
The unemployment rate, in seasonally adjusted terms, in each state, was either level or reduced, except in the ACT which had a small rise.
Queensland: 5.9% down to 5.5%
NSW: 5.9% down to 5.6%
Victoria: 5.3% and unchanged
SA: 5.2% down to 4.4%
WA: 5.1% down to 5%
Tasmania: 5.2% and unchanged
ACT: 3.7% up to 3.8%
NT: 3.4% down to 3.3%
Small businesses are the main driver of new employment and we assist them by providing prospects at no cost to them from our Local Search facility in our Business Directory. Most of the 1.2 million businesses listed are small firms.
Monte Huebsch, CEO
Tuesday, February 9, 2010
Australian small businesses say that Bendigo Bank provides the highest level of customer satisfaction.
A survey by Roy Morgan Research of over 3,000 Australian small business proprietors established that Bendigo Bank was the leader in providing quality service with a rating of 84.5%, however this was a drop of 4.3% from twelve months ago.
Total scores for most banks were lower than the satisfaction figures from a year ago.
St George was the second most favoured, with a rating of 72.4%, a reduction of 2.1% from the previous year.
The order of the balance of the banks was:
ANZ
Total scores for most banks were lower than the satisfaction figures from a year ago.
St George was the second most favoured, with a rating of 72.4%, a reduction of 2.1% from the previous year.
The order of the balance of the banks was:
ANZ
Westpac
CBA
NAB
While Westpac and CBA had a small improvement in their results, NAB suffered a reversal, falling 3% compared to a year ago.
A separate survey by the Council of Small Business Australia reported that the main arrears of concern for small businesses were the cost of getting finance and the high level of interest rates that banks applied to them.
We assist small businesses with our Local Search facility in our Australian Business Directory, which provides them with prospects at no cost to them. Most of the 1.2 million business listed are small firms.
Monte Huebsch, CEO.
Tuesday, December 15, 2009
Less than half of small businesses in Australia are ready for the new Fair Work Act.
The last component of the Fair Work Act is effective on 1 January 2010, and a survey of 352 small firms by CompliSpace shows that many are not prepared for the changes involved.
The new act replaces the Work Choices legislation of the previous government, with a new awards system and ten national employment standards.
The survey found that less than half of small Australian companies understand what is involved in the new laws.
Included in the new act are the following:
An extension of unpaid parental leave from 1 year to 2 years
Redundancy pay for all workers
Flexible work arrangements for carers of children with disabilities
De facto partner’s definition to include same sex couples
And the removal of carer’s leave restrictions that applied before.
The new award flexibility provisions mean that employers may now be obliged to pay benefits not previously provided, including overtime, leave loadings and penalty rates.
Small firms have a difficult time keeping up to date with their responsibilities.
We help by sending them prospects from our Local Search facility in our Australian Business Directory at no cost to them. Most of the 1.2 million firms listed are small businesses.
Monte Huebsch, CEO
The new act replaces the Work Choices legislation of the previous government, with a new awards system and ten national employment standards.
The survey found that less than half of small Australian companies understand what is involved in the new laws.
Included in the new act are the following:
An extension of unpaid parental leave from 1 year to 2 years
Redundancy pay for all workers
Flexible work arrangements for carers of children with disabilities
De facto partner’s definition to include same sex couples
And the removal of carer’s leave restrictions that applied before.
The new award flexibility provisions mean that employers may now be obliged to pay benefits not previously provided, including overtime, leave loadings and penalty rates.
Small firms have a difficult time keeping up to date with their responsibilities.
We help by sending them prospects from our Local Search facility in our Australian Business Directory at no cost to them. Most of the 1.2 million firms listed are small businesses.
Monte Huebsch, CEO
Thursday, October 8, 2009
The USA government was the cause of the housing sub prime lending expansion which was the catalyst of the global economic downturn.
The Clinton government used the Community Reinvestment Act to require the two primary home lending institution in the US, Fannie Mae and Freddie Mac, by 2007, to favour sub prime borrowers. 55% of their mortgages were required to be provided to low and moderate income borrowers, and 25% were to be for low and very low income borrowers.
The intentions were of course good, to assist low income groups to achieve home ownership. The sub prime mortgages were to help borrowers who did not have the capital for a deposit or the income level needed to service a mortgage.
As a consequence, there was a lowering of the lending standards normally required, with low deposits and lower interest rates applying for an introductory period. Wall Street cooperated by pooling these loans and distributing the risk to a wide investor market.
The sub prime loans were very popular, the theory being that rising house prices would provide additional equity in the property after two years of low interest payments.
The reduction of lending standards meant that home ownership in the US increased from 65% in 1994 to 69% in 1996. In 2002, President Bush continued the procedure, with a goal of 5.5 million additional home owners including 1 million minority home owners, by 2010.
Of course this did not work out as planned, with extensive mortgage defaults as interest rates rose and housing prices fell. The US home ownership rate is now down to 67.5%.
In Australia, the home ownership rate has been about 70% since 1960. This figure has remained constant in spite of the fluctuations in interest rates and the various government incentive schemes. The Reserve Bank reports that in Australia there are currently only 25,000 mortgages that are in arrears 90 days or more.
So the US government’s good intentions produced a disastrous outcome, which then spread globally as the US housing market imploded and the lenders failed.
Since small businesses in Australia often use their residential property as security for business borrowing, being spared the US experience has been a blessing. We assist small Australian businesses by providing them with prospects at no cost to them from our Local Search Facility in our Australian Business Directory.
There are 1.2 million businesses listed in our directory, most of which are small businesses.
Monte Huebsch, CEO
The intentions were of course good, to assist low income groups to achieve home ownership. The sub prime mortgages were to help borrowers who did not have the capital for a deposit or the income level needed to service a mortgage.
As a consequence, there was a lowering of the lending standards normally required, with low deposits and lower interest rates applying for an introductory period. Wall Street cooperated by pooling these loans and distributing the risk to a wide investor market.
The sub prime loans were very popular, the theory being that rising house prices would provide additional equity in the property after two years of low interest payments.
The reduction of lending standards meant that home ownership in the US increased from 65% in 1994 to 69% in 1996. In 2002, President Bush continued the procedure, with a goal of 5.5 million additional home owners including 1 million minority home owners, by 2010.
Of course this did not work out as planned, with extensive mortgage defaults as interest rates rose and housing prices fell. The US home ownership rate is now down to 67.5%.
In Australia, the home ownership rate has been about 70% since 1960. This figure has remained constant in spite of the fluctuations in interest rates and the various government incentive schemes. The Reserve Bank reports that in Australia there are currently only 25,000 mortgages that are in arrears 90 days or more.
So the US government’s good intentions produced a disastrous outcome, which then spread globally as the US housing market imploded and the lenders failed.
Since small businesses in Australia often use their residential property as security for business borrowing, being spared the US experience has been a blessing. We assist small Australian businesses by providing them with prospects at no cost to them from our Local Search Facility in our Australian Business Directory.
There are 1.2 million businesses listed in our directory, most of which are small businesses.
Monte Huebsch, CEO
Tuesday, September 29, 2009
Most small businesses in Australia do not protect their data which is held electronically with an effective back up of the information.
A Kroll Ontrack survey of 900 IT managers found that 49% of small businesses had data lost in the last two years. In spite of this most small firms do not correctly back up data on a daily basis which is the normal practice with large companies.
39% of small firms said that they were happy if it took several days to retrieve their data. There seems to be a lack of appreciation of the real cost of retrieving the data and the superior alternative of ensuring a daily back up.
Only 51% of small organisations back up daily, compared to 81% of large companies. In addition, only 41% of small firms tested the restored data from their back up system monthly.
Many small businesses use a USB external hard drive as their back up device which leaves a great deal to be desired regarding the security of the information.
Large firms have a plan for how to respond in the event that a disaster occurs and they also have procedures for eliminating old data which is no longer needed. Small businesses generally have neither.
There is a wide range of third party data service providers available to small firms where the data can be stored off site to protect it in the event of a fire, and it can be automatically updated daily. The cost is nominal and the risk exposure is eliminated if this action is effected.
Small firms have had a difficult time during the economic downturn and loss of critical data is the last thing that they could cope with at this stage. We highly recommend that they look into the benefits of external automatic back up of their data to ensure that this cannot happen.
We assist small Australian firms by sending them prospects from our Local Search facility in our Business Directory with no expense involved for them. We have 1.2 million businesses listed, most of which are small companies.
Monte Huebsch, CEO.
39% of small firms said that they were happy if it took several days to retrieve their data. There seems to be a lack of appreciation of the real cost of retrieving the data and the superior alternative of ensuring a daily back up.
Only 51% of small organisations back up daily, compared to 81% of large companies. In addition, only 41% of small firms tested the restored data from their back up system monthly.
Many small businesses use a USB external hard drive as their back up device which leaves a great deal to be desired regarding the security of the information.
Large firms have a plan for how to respond in the event that a disaster occurs and they also have procedures for eliminating old data which is no longer needed. Small businesses generally have neither.
There is a wide range of third party data service providers available to small firms where the data can be stored off site to protect it in the event of a fire, and it can be automatically updated daily. The cost is nominal and the risk exposure is eliminated if this action is effected.
Small firms have had a difficult time during the economic downturn and loss of critical data is the last thing that they could cope with at this stage. We highly recommend that they look into the benefits of external automatic back up of their data to ensure that this cannot happen.
We assist small Australian firms by sending them prospects from our Local Search facility in our Business Directory with no expense involved for them. We have 1.2 million businesses listed, most of which are small companies.
Monte Huebsch, CEO.
Monday, September 21, 2009
Improved confidence from Australian consumers and a tax deduction for businesses are reflected in increased passenger vehicle sales.
The Australian Bureau of Statistics reports that new passenger vehicle sales increased for the fifth month in a row in August, to 45,543 vehicles, a 10% rise since March.
Analysts suggest that the 30 June deadline for businesses to claim a 30% tax deduction for new assets purchased, fuelled much of the sales activity.
Small business can still claim a 50% tax deduction for eligible assets purchased up to 31 December, so an additional sales peak for business vehicles should occur up to that time.
There have been falls in the number of sales of sports utility and other vehicles in recent months.
As the economic recovery in Australia develops, businesses are buying assets with the motivation of the tax break. It’s anticipated that sales will fall from January 2010 when that benefit has expired.
One of the AussieWeb group, AussieWeb Conversion www.aussiewebconversion.com
is working with Google to improve motor vehicle sales by using Google AdWords with the specific information of individual vehicles. This will assist buyers and provide motor vehicle dealers with a source of prospects which is much less expensive that the traditional channels.
We help all Australian small businesses with our Local Search facility by providing prospects to the 1.2 million businesses listed in our Australian Business Directory, with no cost to them. The vast majority of businesses listed are small.
Monte Huebsch, CEO
Analysts suggest that the 30 June deadline for businesses to claim a 30% tax deduction for new assets purchased, fuelled much of the sales activity.
Small business can still claim a 50% tax deduction for eligible assets purchased up to 31 December, so an additional sales peak for business vehicles should occur up to that time.
There have been falls in the number of sales of sports utility and other vehicles in recent months.
As the economic recovery in Australia develops, businesses are buying assets with the motivation of the tax break. It’s anticipated that sales will fall from January 2010 when that benefit has expired.
One of the AussieWeb group, AussieWeb Conversion www.aussiewebconversion.com
is working with Google to improve motor vehicle sales by using Google AdWords with the specific information of individual vehicles. This will assist buyers and provide motor vehicle dealers with a source of prospects which is much less expensive that the traditional channels.
We help all Australian small businesses with our Local Search facility by providing prospects to the 1.2 million businesses listed in our Australian Business Directory, with no cost to them. The vast majority of businesses listed are small.
Monte Huebsch, CEO
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