[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.6″ header_2_font_size=”32px” custom_margin=”||0px|||” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n
It\u2019s expensive to run a business, and finding ways to reduce costs isn\u2019t obvious. If you go for the cheapest option, the trade-off is quality. If your quality is compromised, your reputation and even your profits are at risk.<\/p>\n
Addressing cost drivers like wages or compliance is less about cutting corners and more about spending wisely. Make your money go further without sacrificing your quality, reputation, or profits.<\/p>\n
While the big cost drivers often stay the same, you can still find easy wins by taking a top-down approach to your expenses. An audit of your spending can reveal saving opportunities. Remember, have a focus on productivity rather than shaving costs here and there \u2014 you rarely see much upside in penny-pinching.<\/p>\n
For example, finding a couple of dollars in savings here or there will have minimal impact on a business, but finding 10% savings by negotiating with suppliers will have a huge impact and improve your cash flow.<\/p>\n
Labour accounts for at least a third of expenses for most Aussie businesses. You need people to run your business, and your employees need a salary and wages to make a living. Since salary and wages are necessary, it is better to view this cost centre as an ongoing investment in your business.<\/p>\n
This means you need to start investing in your employees effectively at the beginning of your hiring cycle and refine each stage:<\/p>\n
Interview stage > Onboarding stage > Standard operating procedure > Development stage.<\/em><\/strong><\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/02\/Employee-development-stages-1024×131.png” title_text=”Employee Development Stages” align=”center” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”20px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n What you want to do is create a reliable process that gets your employees up to speed, contributing, and even improving your business. It is also worth noting that staff who are invested in by a business are happier, which reduces staff turnover<\/a>.<\/p>\n The costs of hiring<\/a> and onboarding<\/a> new employees are significant commitments for businesses; the last thing you want is an employee who is either unqualified or slow to contribute. By having a go-to guide for each stage, you increase the likelihood of hiring the right employee and having them contribute sooner in their employment.<\/p>\n Teaching staff what work they need to do and how to do it is great, but not a great use of your time every time you have a new hire. Create a document that can be shared and taught by other staff members.<\/p>\n If your business has specific tasks, such as manual labour and admin, provide clear guidelines for employees to follow, so they don’t have to \u2018reinvent\u2019 the wheel. Of course, these procedures shouldn\u2019t be static, as you can refine them as you go along.<\/p>\n Good training and development for your employees<\/a> can turn them into real assets to your business. It makes your staff not just competent, but better value.<\/p>\n By viewing your employees as assets rather than costs, you can ensure they are productive for your business. Not only are they productive, but well-invested staff save you time and money as they are likely to stay longer and be more active in things that save you money, like protecting your business from scams<\/a>.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/02\/Addressing-energy-costs-icon.png” alt=”How to address energy bills through efficient products, practices and value proposition.” title_text=”Addressing Energy Costs Icon” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”-20px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Energy bills are consistently increasing, but it\u2019s not enough to just get a better deal from energy companies. Instead, focus on making your energy consumption efficient by going green with your business<\/a>.<\/p>\n Low-cost energy products are tempting, but you need to look beyond cost and think about function. For instance, fluorescent lighting, while cheaper to install, is considerably less efficient than LEDs. Look at the long-term efficiency of products that better use your energy.<\/p>\n But what about less obvious options? Here are some ways to reduce your carbon footprint while saving money:<\/p>\n Changing how you operate during peak energy consumption periods is a practical way to reduce your energy use (and your energy bill). For example, Ausgrid says peak times during summer and winter are 3 pm to 9 pm. By instituting a low-consumption\/shutoff period for non-critical appliances, you can reduce demand charges on your energy bill.<\/p>\n If sustainability becomes a significant part of your operations, celebrate it and weave it into your marketing. This not only delivers cost savings but also a value proposition you can include in your goods and services.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/03\/Addressing-property-icon.png” title_text=”Addressing Property Icon” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”-20px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n If you need a physical location to run your business, you can\u2019t avoid overhead costs like rent or utility bills. Instead, you might have to audit your expenses with a fine comb.<\/p>\n To start addressing your property costs, break them down so you know where your money goes. Don\u2019t just look at rent: look at cleaning costs, electricity, and maintenance.<\/p>\n Maximising your space means making it more productive for customers or employees. If your business\u2019s location is where customers come to purchase from you, develop your space as part of your identity is vital.<\/p>\n For example, say a retail store wants to make purchasing from them as easy as possible to increase the likelihood of turning browsing customers into paying customers.<\/p>\n The store could invest in the flow of the store floor (to make it easier to navigate), marketing tactics for high-selling items (to increase sales margins), and sales-closing training for staff (to seize opportunities).<\/p>\n Leasing negotiations aren\u2019t always on the side of the renter, especially if your business space is specialised, or if you\u2019ve spent time building the perfect location for your business.<\/p>\n When you approach rent negotiations, always review benchmarks for the location and explore ways to flatten the rent increases. If your trade is seasonal or volatile, instead of locking in fixed terms year-round, consider a turnover-based rent that shares the risk with your landlord.<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/03\/Addressing-compliance-costs-icon.png” title_text=”Addressing Compliance Costs Icon” align=”center” _builder_version=”4.27.6″ _module_preset=”default” custom_margin=”-20px||||false|false” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n There are many compliance requirements that Australian businesses need to meet. On their own, the costs are small, but they stack up (i.e. BAS, payroll tax, industry-specific licenses). You can\u2019t reduce compliance costs, but you can address them by either being more productive through software tools, or sharing the cost burden by applying for grants and funding.<\/p>\n Whatever industry you operate in, there will be software tailored to it. For medical practices, there is practice management software; for professional services, there will be sales and customer relationship management software. The point is that using the right software<\/a> can make your business more efficient, so you can meet your obligations without breaking the bank.<\/p>\n There are over 500 grant programs available to small businesses covering a variety of industries and applications. It is worth looking into what programs you can apply for on the business government website<\/a>. For example, regardless of your location, there is a wage subsidy to help you hire new staff.<\/a> This can help reduce hiring costs, since the government shares those costs with you.<\/p>\n When you look at how much it costs to run your business, it\u2019s tempting to just start cutting costs and going with cheaper alternatives. But that\u2019s a zero-sum game, because the wrong cut can seriously hurt your business \u2014 and eventually, you\u2019ll run out of costs to cut.<\/p>\n This is why it’s better to spend smarter, not less. Make your money do more. You can\u2019t avoid salary, rent, utilities, and compliance, but you can treat them like investments. For example:<\/p>\n Refining these areas of your business helps you not just maintain quality, but improve it \u2014 along with your reputation and profits.<\/p>\n [\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Discover clear ways to reduce small business costs, from smarter systems to better suppliers, without cutting corners on quality.<\/p>\n","protected":false},"author":36,"featured_media":301706,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p> This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p> Let\u2019s go through it.<\/p> The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p> Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p> Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p> Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p> The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p> The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p> The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p> The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p> If you are unsure about the definition of casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p> The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p> Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p> Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote> In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p> Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p> After a consultation, the employer can accept or reject the notice of employment change.<\/p> When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p> When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p> Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p> Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p> Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p> As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for managing your staff<\/a>.<\/p> You may find that the new process has new opportunities for dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-301700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"\nInterviewing & onboarding<\/h3>\n
Standard operating procedures<\/h3>\n
Training and development<\/h3>\n
<\/h2>\n
How to address your energy consumption<\/h2>\n
Efficient energy products<\/h3>\n
\n
Efficient energy practices<\/h3>\n
Going green and your value proposition<\/h3>\n
<\/h2>\n
How to address your property & overhead costs<\/h2>\n
Map property costs<\/h3>\n
\n
Maximise the space you occupy<\/h3>\n
Negotiate lease structure and terms<\/h3>\n
<\/h2>\n
Addressing your compliance costs<\/h2>\n
Digitising your business<\/h3>\n
Grants and funding<\/h3>\n
Addressing costs and keeping quality<\/h2>\n
\n
Key changes to casual employment rights<\/h2>
Who is affected by the employee choice pathway?<\/h2>
The process involved<\/h2>
Defining casual employment<\/h3>
Giving notice of employment change<\/h3>
Responding to a notice<\/h3>
Accepting or rejecting an employment change notice from an employee<\/h3>
What happens if there is an employment dispute?<\/h2>
The bottom line<\/h2>