A Brief Guide to Advertising

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Pamphlets, brochures, posters, billboards, leaflets; we often find these promotional print materials stuck on our car’s windscreen wipers or at our doorstep. What does the content on those pieces of paper imply? What messages do they convey and to whom? Why are they placed at such locations?

Such print documents are nothing but advertisements that are designed to build brand awareness and for marketing purpose. They showcase to people the many products and services available in the market. Companies use public spaces to put up or distribute their advertising materials, so it catches the eye of a larger audience. The aim is to influence people’s mind and convince them to purchase a product or service.

But how do companies decide where to place their advertisements?

Strategists analyse a space to locate spots most visible to the eye. Further, keeping in mind the target audience, whether they are kids, mothers, job-seekers, etc., locations like grocery stores, industrial areas, cafes, are chosen to advertise. The process also involves choosing the best suitable medium of communication, e.g. via radio, television, internet, billboards, etc.

How does a company make their advertisement stand out?

Advertisements are costly, and companies or individuals make sure even a penny invested in advertising counts. For this, strategies like visual appeal through colours, faces of famous personalities and influencers, highlighting the company’s values, using catchy quotes or imagery, etc. are implemented. Online advertisement marketing employs pop-ups, paid reviews, click baits, selling ads through famous blogs, and the like.

Advertisement as an industry is growing because of increasing competition between various brands who are to cater the same population. Many institutions are teaching advertisement as a branch of study. In the end, it all boils down to who can make the most of the available resources and acquire a larger share of the consumer market.

Disclaimer: Prepared by Leigh Barker Tangible Assets, Accountant, Portfolio Finance, Gordon, West Pennant Hills and MWC Group. Note that all content of this blog is general in nature and is not financial or investment advice thus anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance.

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What is a Franchise – Leigh Barker Tangible Assets

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A franchise is a is a way to expand a business through a licence arrangement between one business owner to another. The franchisor licences its trade name and systems of doing business to the franchisee who agrees to do business under the terms of the licence.

The franchisor provides business support whereas the franchisee pays a franchise fee to cover the cost of the trade name and operating methods. While the franchisor will exercise control some elements of operations to protect intellectual property the franchisor has little or no involvement in the day to day operations of the franchisee.

As a franchise brand is considered the most valuable asset, franchisors expect the franchisee to implement brand standards at every location as customers have little to no interest with whom owns the assets they simply require their products or services for which the brand is known.

Franchising is a popular method for companies to increase distribution of goods or services and has benefits for both the buyer and the seller. For a franchisor there is the main benefit of using other peoples money to expand more rapidly than possible. Other benefits include the ability to collect fees to continue to build the brand without losing control.

A franchisee benefits from ongoing training and support, sales power, group purchasing, the use of an established business model and customer lead generation.

Following the system is critical to the success of a franchise while departing from the system without approval can be detrimental to the franchise.

Disclaimer: Prepared by Leigh Barker Tangible Assets, Accountant, Portfolio Finance, Gordon, West Pennant Hills and MWC Group. Note that all content of this blog is general in nature and is not financial or investment advice thus anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance.

What is a Travel Allowance? – Leigh Barker MWC Group

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A travel allowance is an amount paid to employees to compensate for out of pocket expenses incurred on behalf of the employer while you travel for work. In the main a travel allowance will cover such expenses as accommodation, food, drink, transport, laundry and telecommunications.

A travel allowance is paid to an employee who is travelling on business and is not thought of as living away from home. Generally, an employee travelling for business is not accompanied by their spouse or children.

While a travel allowance is considered to be assessable income which may attract PAYG withholding, any expenses incurred on meals and incidentals may be deducted against the allowance on the proviso that it meets the criteria.

Every year the Australian Tax Office (ATO) releases a tax determination listing all reasonable amounts that can be paid as a travel allowance covering accommodation, meals and incidentals.

Thus, when the amount claimed by an employee for a domestic travel allowance does not exceed the ATO’s reasonable allowance amount there is generally no requirement to substantiate the claim by providing either written evidence or a travel diary. If the expenses associated with the travel allowance exceed the reasonable travel allowance set by the ATO it would wise to retain documentary evidence to substantiate the expense. Conversely, claims for overseas expenses must be substantiated through written evidence inclusive of a travel diary.

If the travel allowance does not appear on the payment summary the allowance is not included in the return and in this instance, there is no ability to claim any deductions.

Please note: Prepared by Leigh Barker MWC Group , Accountant, Portfolio Finance, Gordon, West Pennant Hills and Tangible Assets. Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance

What is an Australian Business Number – Leigh Barker Tangible Assets

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When an activity becomes a business, it may require an Australian Business Number (ABN). If this point has been reached you can apply for an ABN to use in all business transactions. In order to ascertain if an activity has become a business there is an ABN entitlement tool located on the Australian Business Register (ABR) to assist with that decision-making process.

While there is no single test to determine if an activity is a business there are numerous features that may indicate that activities being undertaken may form a business. For example, there is an intention to make profit, there are sales of products or services of a reasonable size, activity is conducted in a business-like manner, having licenses or qualifications, having a registered business name, and maintaining records and accounts.

An Australian Business Number (ABN) is an eleven-digit unique identifier that is issued by the Australian Business Register (ABR) which is a branch of the Australian Tax Office (ATO). An ABN is free when registering through the ABR and once registered, ABN details are held in the ABR.

An ABN is generally quoted on all invoices and other documents relating to the sale of goods or services made to another business else a withholding tax may be applied under the PAYG withholding system.

As a unique identifier an ABN will allow businesses to be readily identified by government and non-government businesses. Once issued the ABN will appear on the ABN Lookup database.

Please note: Prepared by Leigh Barker Tangible Assets, Accountant, Portfolio Finance, Gordon, West Pennant Hills and MWC Group, Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance

What is a Self-Managed Superannuation Fund – Leigh Barker Tangible Assets

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A self-managed superannuation fund (SMSF) is a trust structure managed by its members to provide benefits to these same members upon retirement. An SMSF operates under similar rules and restrictions as ordinary super funds. An SMSF is designed for its members to have direct control over their retirement savings and investments.

An SMSF is a private superannuation fund regulated by the Australian Tax Office (ATO) who checks the compliance of the SMSF on an annual basis. An SMSF comprises no more than 4 members all of whom are trustees of the SMSF, all of whom are personally liable for all decisions made by the SMSF. All members must be trustees and all members are responsible for decision making and compliance with relevant laws.

An SMSF is established for the sole purpose of providing benefits to members in retirement. An SMSF is a vehicle to save for your retirement.

An SMSF may either have a corporate trustee or an individual trustee who is responsible for making investment decisions and implementing the investment strategy of the fund.

It is important that the assets of an SMSF are separated from those of the trustee. As such an SMSF is required to have its own tax file number (TFN), an Australian business number (ABN) and its own bank account into which all SMSF deposits and payments are made. In addition, all investments are to be made in the name of the SMSF. The failure to separate assets is a clear contravention of super legislation and associated regulations.

Please note: Prepared by Leigh Barker Tangible Assets , Accountant, Portfolio Finance, Gordon, West Pennant Hills and MWC Group. Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance

What is an Electronic Funds Transfer – Leigh Barker Tangible Assets

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When money is transferred from one bank account to another without the use
of paper documents and without the direct involvement of bank staff this is
referred to as an electronic funds transfer.

In contrast to traditional payment methods new payment systems have been
developed as the internet has evolved. Initially banks changed the method
that interbank payments were processed followed shortly thereafter at the
retail banking level whereby corporate and retail customers were offered
electronic banking platforms to process incoming and outgoing payments.

Electronic funds transfer systems have the effect of reducing administrative
costs as the direct involvement of bank staff is not required. Due to
potential cost saving benefits electronic funds transfer systems are
promoted by most financial institutions.

Electronic funds transfer systems have been applied to such transactions as
payroll related payments, debit or credit transfers, mortgage payments etc.

While there are many applications currently in place for an electronic the
most common services available comprise

* Automatic Teller Machine (ATM) is an electronic terminal that
permits banking any time. To withdraw cash, make deposits or transfer funds
using an ATM card & pin.
* Pay by Phone systems permit the user to contact the biller to pay or
transfer funds between accounts
* Payment transactions permits the user to make purchases with a debit
card. Transactions can take place in person, online or by telephone

Initially electronic funds transfer was driven by banks and aimed at
efficiency gains and cost savings whereas today the focus is on e-commerce
solutions to address how consumers access and pay for new services.

Please note: Prepared by Leigh Barker Tangible Assets, Accountant, Portfolio
Finance, Gordon, West Pennant Hills and MWC Group. Note that all
content of this blog is general in nature and anyone intending to apply the
information to practical circumstances should seek professional advice to
independently verify their interpretation and the information’s
applicability to their particular circumstance

What is an Electronic Service Address – LEIGH BARKER TANGIBLE ASSETS

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An electronic service address (ESA) is a unique identifier used by a Self-Managed Superannuation Fund to receive SuperStream data. An electronic service address is not an active email address it is an alias comprising a uniform resource locator (URL) or internet protocol (IP) of a message provider.

An electronic service address is akin to a digital post office established to receive data from employers through SuperStream. Employers only remit contribution remittance advice information via the electronic service address and all contributions money is remitted directly to the self-managed superannuation fund bank account.

An electronic service address can be obtained from either a Gateway Service, a bank, a tax agent, an accountant, or a self-managed superannuation fund administrator. The provider of an electronic service address will

* Issue an active electronic service address
* Receive contributions messages sent to a self-managed superannuation fund from employers
* Transfer employer contribution messages
* Ensure that all technical requirements for interacting electronically across the superannuation network in accordance with the ATO’s electronic data messaging requirements for gateways
* Once provided to an employer the service will deliver superannuation transaction messages via a secured electronic distribution network to a nominated email address

For a self-managed superannuation fund to receive contributions, the following information is to be provided to employers

* Australian Business Number (ABN)
* Bank account details (BSB, account number, account name)
* Electronic service address (ESA)

Thus providing the employer knows the self-managed superannuation funds Australian Business Number (ABN) and Electronic Service Address (ESA) the employer can send SuperStream data.

Please note: Prepared by Leigh Barker Tangible Assets, MWC Group, Accountant, Portfolio Finance, Gordon and West Pennant Hills. Note that all content of this blog is general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstance