Category: Lifting weights

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Illum – Profit with Australia’s new climate-related laws AASB S2

Allie

Climate-related reporting legislation began in January 2025 for large corporations in Australia. The legislation requires large businesses to:

  • Measure and disclose their carbon emissions
  • Report environmental impacts in annual sustainability statements, and
  • Integrate sustainability data with financial reports.

Why this matters to small businesses

In order for a large business to obtain as much information as possible. As a result, sharing emissions data with larger clients or projects could be required.

Extra paperwork or sales opportunity

It’s a two-edged sword. By tracking your carbon footprint ahead of your competitors could make you a more valuable business partner by showing your business is thinking ahead.

Valuable steps to do right now

Start with the basics like:

  • Energy consumption. Source from your energy bills. Did you know many accounting packages already use OCR to read your bill and pre-populate the information. Ask your accountant if that is available to you. If not, check your printer software. Did you know many PDF editors have free OCR in their scanner that can pop it into a table for you. Your next bill is a great place to start.
  • Fuel used in business vehicles. How many litres or kilowatts if all electric.
  • Waste management practices. How much volume in your different bins? How often are they emptied?
  • Supply chain transportation is another start point.

Software availability

Start to have a look at new apps that can help track and report your environmental impact statistics.

Clever outcomes

It is not just about meeting more regulations.

When you start to collect, your will start to reduce. Why? You begin to see where the waste is and by being more efficient you will reduce operational costs.

Think about getting the jump on your competitors. We’re here to help, contact us about reviewing your systems and gathering the data smoothly.

We hope you’re enjoying our Illum jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

Illum’s is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

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Illum – Boost sales with product bundling

Allie

Product bundling boosts sales by offering multiple related products at a price that simplifies shopping and, in the eyes of the buyer, a good discount. Then they buy more.


Well, that’s the overall idea. The less decision fatigue, the faster and easier purchasing becomes—watch out for choice reduction. Reduce choice at your peril.

Happy customers

How do accountants help sales managers get it right?
Is the product capable of pure bundling? Does widget A need product B to put it together? Or is choice reduced to the point that the software suite is only available to the consumer?
Will cross-category help? Buy a smartphone and the extended warranty, screen protector, case, and extra battery charger. You get the idea.
So, the consumer sees it all together at a lower price feels like a smart deal.

Margin management matters

Accounting is vital in creating a sense of savings with good margins in the supply and distribution line.

When too many options are present. For example, a price ceiling or floor for the sales staff, which means they must consult with a manager for approval. Is the consultation process beneficial for the customer in the sales process? It adds a time cost, especially during peak selling periods.

Solve it

A great idea is to sit down with your accountant and build an initial template from supply and distribution with all the costs, not just a select few put in. Set the overall business margin to ensure the bundle price reflects real value without cutting into the set business margin.
Test different pricing strategies and choose products that naturally go together before loading into the selling margin template. The selling margin template in use at the point of sale becomes a simple traffic light display.

Keep it simple to help business efficiency and the sales process. Connect your dots, we are here to help, no matter the size.

We hope you’re enjoying our Illum jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

Illum’s is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

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Illum – How do assets work for my small business

Allie

Small businesses maximise the instant asset write-off to claim a tax deduction for the cost of an asset.

A tax deduction is an amount of money subtracted from your taxable income. Your tax rate is calculated based on this calculation.

When you sell products or services, the sum of those sales becomes your taxable income. Many rules exist about deductions that you can claim in Australia. It is always best to consult a registered tax agent to make your tax return.

An asset is something that you own and use repeatedly in your business. It is valuable as it helps you achieve your current and future income. When accountants list your assets, the sum of that list is displayed in an asset register and totalled in your Balance Sheet. The Balance sheet shows how much you own and owe at a given time.

In Australia, the tax system has an instant asset write-off section. Your business can use the instant asset write-off for multiple assets if each cost is less than the limit. Assets can be new or second-hand.

The limit looks at the cost of the asset, not the percentage of business use. Exclusions also apply.

Assets work hard for you. Your accountant can match their use to future income or, if eligible, write off in a single year. Connect the dots and benefits of asset management because it provides a systematic approach to monitor all assets to run smoothly.

Regeneration never sleeps.

We hope you’re enjoying our Illum jottings, just a note though. The information provided here is intended for general informational and educational purposes only. While we aim for accuracy, we can’t guarantee that this content will apply to your specific situation—everyone’s circumstances are unique.

Illum’s is not a substitute for personalized advice from a qualified accountant, tax advisor, or any other professional. If you have questions specific to your individual circumstances, we strongly recommend consulting a professional for tailored advice.

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Budget control using internal risks

Your budget is affected from internal risks from any direction. Delving into the archives, the review of internal risks is as relevant now as it was then.

Oliver* worked as a quality controller for a large manufacturing company. Oliver was involved in checking the manufactured parts for compliance with engineering standards. Several other people worked in his department reviewing internal risks, and they worked in shifts.

A new order had arrived. The client presented several additional requirements for the quality of parts. Oliver and other quality controllers had to monitor compliance with these requirements and immediately report discrepancies to the production manager.

The quality check consisted of measurements of several indicators, each of which had tolerances for deviation from the standard.

The client’s quality requirements were very high, and the dimensional tolerances were tight. Several parts failed the client’s needs. After immediately reporting this to the head of the production and after readjusting the machines, work continued.

In the evening, Oliver’s colleague Charlie* took over. Oliver informed him of the defects he found and asked him to pay attention to verifying this indicator.

Oliver’s shift was ending, and his thoughts turned to meet his girlfriend as he had planned to leave a little earlier. Oliver started checking only a few tolerances that he thought were critical. Oliver decided to skip the hole diameter reading as it was never a problem before and was a large amount of detail, and he risked running late.

When Charlie took over from Oliver, he discovered that the hole diameter was not within specification. Charlie immediately reported this to the head of the production per procedure and diverted the questionable batch. Together they checked the equipment settings and found that the press head was loose, which led to the failure.

The head of the production said that this failure could not have given such a deviation during Charlie’s shift. With a high internal risk rating present, they then decided to retest other batches. They found that the last two sets had the same hole size defect. 

In the morning meeting, all quality controllers were updated about the presence of defective parts.  

At-risk was

  • The business reputation,
  • Capital investment in machinery,
  • Contract Profit,
  • Maintaining their Quality Standard achievement. This list goes on. 

The Governance Manager had a controlled self assessment program for internal risk management. The program provided internal auditors support for quality standards but struggled to provide overall accounting risk valuations. 

Being accountants with over 30 years experience in internal controls and audit. Our Prov3-IT review looks at the processes and the breakdown in controls from engineering to manufacturing, transport and distribution along into accounting and on to future budget planning. 

Prov3-IT is comprehensive and helpful for many executives in your business. Our external review validates your great sales work and supports historic and forward planning.

Valuing internal controls is our speciality. Connecting dots adds value to your engineering, sales, manufacturing, transportation and distribution segments.

Prove3-IT is our unique review to help you stand back from this situation and value all the potential remedies. 

Access over 30 years of experience in heavy industry, warehousing, transport and distribution. Our accounting reviews are a valuable report available to you.

Unlock the future in your business today.

Don’t wait; book an appointment now.

*names changed.