Business - U2 AOS1

ASIC

manages national business name registration; registration is generally mandatory. register different sole trader names.

Domain name

The address of a website on the internet.

Importance of a domain name

Helps customers find the website easily and establishes an online presence.

Tax rate for larger businesses

A flat rate of 30%.

Tax rate for smaller businesses

A flat rate of 25%.

Income Tax - Individuals

Individuals pay a progressive tax rate, increasing in percentage as income increases.

Local Government Regulations

Land use, regulations, development, fire safety, parking, signage.

Consumer Protection & Fair Competition

protects from unfair practices through federal and state laws, with industry-specific codes of practice providing guidelines for operations.

Consumer Guarantees

Consumers gain legal title to goods; products must match descriptions, be quality, fit for purpose, and timely.

Freelancers

any independent worker who charges businesses or

individuals for work on a per-job basis. This can apply to many different type of jobs.

Bookkeepers

assist a business in keeping and processing a business's financial records. They often charge by the hour.

Recruiters

Businesses often rely on HR professionals for staffing, as recruitment is complex and specialized.

Sales Professionals

Finding customers is challenging; charge commissions for their persuasive skills.

Marketing Consultants

enhance brand awareness through campaigns, leading to increased sales.

IT

Businesses rely on __ services for support beyond owners' capabilities and expertise.

Seperate Entity

Accounting principle recognising that the owner's finances are separate to those of the business and therefore business transactions should be recorded separately.

Benefit of separate business account (monitoring)

It is easier to monitor the financial performance and position of the business.

Benefit of separate business account (tax)

Makes calculating expenses and revenue easier, reducing the time and cost of tax returns.

Bank Fees (PDS)

Hidden fees legally required to be stated in the Product Disclosure Statement.

Interest Rates (bank account)

Determines interest earned on bank balances or repaid on loans.

Bank overdraft facility

An option allowing a business to withdraw more than their available account balance.

Business credit cards

Cards with specific spending limits and interest rates on unpaid balances.

Convenience and support (banking)

Larger commercial banks offer better physical infrastructure, ATMs, and secure apps.

Budgeting

Predicting or estimating the business's financial performance for a given period in the future.

Three types of budgets

Cash flow budgets, budgeted income statements, and budgeted balance sheets.

Budget preparation frequency

Budgets may be prepared monthly, quarterly, or yearly.

Financial Control Problems

Poor systems, Mismanagement, Theft or fraud, Poor theft management, Lack of cash flow, Damage to assets, Incorrect pricing

Cash Flow Strategies

Tracking debts, accounts staff, customer discounts, withholding supplies, short-term finance.

Inventory

Large quantities of materials on hand to complete production is a business is called inventory or stock.

Inventory Control

Is a system businesses use to ensure that the costs associated with maintaining an inventory of material are kept to a minimum.

Auditing

the process of testing and evaluating business's accounting process and internal controls.

Price

Maintaining profitability requires low costs and careful supplier selection.

Quality

Suppliers must provide quality products to meet business and customer expectations effectively.

Reliability

Fast stock turnover requires timely supplier delivery; delays can lead to lost sales and damaged reputation.

Proximity

____ to suppliers saves time, money, reduces transport costs, and supports the local economy.

CSR

Suppliers must align with ______ and sustainable procurement objectives for businesses.

Policy

A written set of broad guidelines to be followed by all employees

Procedure

A series of actions that enable a policy to be put into practice