With the close of another financial year, it is an opportunity to begin anew for the 2018 financial year, putting the tumultuous events of the year behind us.
While no-one possesses a working crystal ball, we can safely predict that the coming year will see further uncertainty. Exactly what that change will be is an excellent topic to share over a beer.
The nature of the hospitality industry means that we are far from immune from change. Some of the changes over the last year alone, whether they were a help or a hindrance include:
- Regulatory changes to trading hours, backpacker tax, 457 visas, penalty rates, to name but a few
- Additional costs imposed on late night venues with ID scanning
- Regional venues exposure to drought, floods and mining pull-back
- Continued pressure on gaming and its role in society
- Continued scrutiny of alcohol and its role in our society
- Continued technological disruption to the accommodation sector, gaming and entertainment offerings
And this does not even address changes to taxation and superannuation laws which change almost daily.
All this uncertainty makes planning difficult. But plan you must!
Ask yourself: What worked well in the last year? What didn’t work well? Why?
What worked well? And by “well” we mean what met or exceeded our expectations. Not just a gut feel, but the quantifiable goals that we set in a clear budget. After all if it can’t be measured, it can’t be managed. Especially where performance and remuneration expectations diverge.
What didn’t work well? And by “didn’t work well” we mean didn’t achieve the goals that we set for it. Did the additional gaming machines lift fulfil their expected net machine income? Did the renovations on the bistro achieve an increase in earnings sufficient to cover the cost of funds used to pay for them?
If you haven’t set those goals, you need to speak with us.
“The why” on the other hand, will dictate the affirmations or corrections required for the year ahead.
The budgets you set for your venues for next year and beyond are only part of the story. These assets power your personal budgets which directly and materially affect your family’s welfare.
It is at the nexus of maximising the return on your venue and maximising the after-tax return to you and your family where Hanrick Curran add value.
This is where your family’s personal planning meet your tax planning so that your family’s goals – both short and long term, are met.
We work with specialist hospitality lawyers, financiers, financial planners and you to chart a course through stormy seas not just for the coming year but into the next generation as well.
Change is constant. We can help you meet that challenge.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.