Business SAC 1

Accountant

A professional who manages, updates, analyses and reports a business’s financial information.

Financial Adviser

A professional who provides expert advice to individuals and businesses in relation to monetary matters, personal finances, and potential investments.

ICT Specialist

A professional who develops and maintains the technological systems that are used by businesses to store and retrieve data.

Legal Advisor

A professional who provides expert advice to businesses regarding their legal responsibilities.

Trademark

An exclusive right granted over a unique aspect of a business, such as a symbol, word, sound, or number that is used to distinguish the business or its products.

Web Domain

Is a website address that identifies a business’s online site.

Tax Compliance

Is the extent to which an individual or business meets tax obligations.

Work Safe Insurance

Is compulsory insurance that assist employers to meet their obligation of financially compensating and supporting employees who become injured or ill because of their work.

Separate entity

a business is treated as independent from its owners, with its finances kept separate from their personal finances.

Financial Control Systems

Are processes and procedures used to direct and monitor a business’s finances.

Policy

Are written statements that outline the expected performance and behaviour of employees.

Procedures

Are a series of actions that employees must follow in order to abide by the business’s policies.

Overseas Suppliers

Individuals or businesses that sell raw materials or resources in a country overseas.

Overseas Retailers

Are individuals or businesses that sells goods and services directly to customers overseas.

Registering the business name

Required unless using the owner’s exact name, register name with ASIC. ABN is needed, and trademarks help protect the name.

Why (registering the business name)

So customers know and trust the business and no one else uses the name.

registering a website domain

is the business’s online address. Businesses register domains via auDA; must check availability and trademarks first.

Why (registering a website domain

Makes the business easier to find online and adds credibility.

trade practices legislation

Trade practices legislation sets rules for how businesses treat customers and competitors. The Competition and Consumer Act 2010, enforced by the ACCC, ensures fair conduct and penalises breaches.

Why (trade practices legislation)

Ensures fair and honest conduct with customers and avoids legal issues.

business tax compliance

businesses must pay the correct taxes, including income tax and GST, to the ATO. They must lodge tax returns and may use a tax agent. Failing to follow tax rules can lead to fines or closure.

Why (business tax compliance)

Keeps the business legal, avoids fines, and supports public services.

Work safe Insurance

Work safe insurance supports employees injured or sick at work. It’s required for businesses paying over $7,500 in wages, it shows you care about your employees safety and helps cover costs if something occurred.

Why (Work Safe Insurance)

Protects workers, covers costs, and shows that you care for your employees

Role of accountants

Accountants manage business finances, prepare reports, handle tax, ensure legal compliance, and give advice on saving and growth.

Role of Financial Advisors

Financial advisers help businesses use money wisely through budgeting, saving, investing, and future planning to stay financially healthy.

Role of ICT Specialists

ICT specialists set up and manage technology, including computers, software, and internet security, ensuring smooth business operations and data safety.

Role of Legal advisors

Legal advisors ensure the business follows the law by handling contracts, protect ideas (names or logos), and managing legal issues to prevent trouble.

Role of Marketing Advisers

Marketing advisers promote the business by creating ads, developing branding, and researching customer needs to boost sales and growth.

Establishing a bank account

A business needs its own bank account, separate from the owner’s personal money, to easily track earnings and expenses, assist with tax reporting, and comply with legal requirements for certain business types.

Financial control system

Financial control systems help businesses manage money effectively by creating budgets and monitoring records. They prevent errors, reduce money loss, and support better future planning.

record-keeping strategies

Record-keeping involves documenting all business income and expenses. It aids in tax returns, business reporting, and legal compliance. Records must be kept for five years and help identify good or wasteful money use.

Explain why it is important for businesses to always consider separate bank accounts, financial control systems and record keeping strategies?

A separate bank account keeps business and personal finances apart, making money management, taxes, and legal compliance easier. Financial control systems prevent fraud and support better decisions. Good record-keeping tracks finances, aids reporting, improves operations, and is legally required.

Policies importance

Policies help businesses follow the law, guide employee decisions, create a safe and respectful workplace, and support business goals like staff safety and customer privacy.

Procedures importance

Procedures guide employees on how to handle situations like emergencies or complaints, making the workplace organized and efficient. They ensure rules are followed, helping the business meet legal requirements, such as consumer rights during product returns.

importance of choosing an appropriate supplier

Choosing the right supplier ensures smooth operations, quality products, and timely delivery. A reliable supplier helps save money, avoid delays, and build a good reputation. A poor choice can lead to late deliveries, low-quality products, higher costs, and unhappy customers.

Price (supplier consider)

Affects production costs and profits. Lower prices help reduce costs, but very cheap inputs might be low quality.

Quality

Impacts customer satisfaction and product reliability. Poor quality can cause defects and returns.

Reliability

Timely and accurate deliveries help keep production on schedule.

Location

Local suppliers reduce transport costs and emissions; overseas suppliers might be cheaper but risk delays.

Social Responsibility (CSR)

Suppliers should treat employees fairly and use sustainable practices, which boosts reputation but can be more expensive or limit choices.

customer database

A consumer database is a collection of customer information, such as contact details and previous purchases, used by businesses to understand customers and improve marketing.

Explain the advantages and disadvantages of technology

Advantages:

• Helps businesses collect, store, and analyze large amounts of customer data quickly.

• Allows faster access to customer information, improving efficiency.

Disadvantages:

• Technology can be expensive to set up and maintain.

• Not all staff may know how to use it – they may need training

Explain what a business needs to consider when looking to use customer databases

-       Privacy Laws: The business must protect personal information and follow rules on how to collect and use data.

-       Security: Customer data must be kept safe from hackers or leaks.

-       Accuracy: The information should be correct and kept up to date.

-       Permission: In many cases, customers must agree to share their data (like ticking a box to sign up).

-       Purpose: The business should only use the data for clear reasons like improving products or sending special offers.

How contacts with overseas suppliers impact decision making

-       Need to consider price, quality, and reliability of suppliers

-       Check if suppliers follow ethical and social responsibility standards

-       Must comply with legal rules and government trade restrictions

-       Overcome communication challenges like language and time zones

-       ensure materials will arrive on time and undamaged

How contacts with overseas retailers impact decision making

• businesses prefer to sell to retailers in countries with low fees and free trade agreements to reduce costs

• businesses may adjust product processes, like labelling, to meet the specific demands of overseas retailers

• businesses may choose to work with social responsible retailers to support their own ethical and sustainability goals.