Accountants Sunbury: Common travel and accommodation issues that businesses should be wary of (Part 2)

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Here are some of the common issues that travel and accommodation businesses should be wary of. At Sky Accountants Sunbury & Bookkeepers Sunbury, our goal is to empower you to become a better, more finance-focused and well-rounded entrepreneur. Contact us at info@skyacc.com.au or 1300 328 855

It is prohibited to promote or state a price that is only part of the cost if you’re not advertising the single or total price. This is called component pricing. Single price is the minimum total cost that can be quantified at the time of making the representation for a consumer to buy the product or service. It is calculated by adding up all price components that you can quantify when making the price representation such as tax, fee, duty, levy or any charge imposed on you. The total price should be prominently displayed and factors such as placement, size, colour, font and even background should be considered.

When taking a booking from a customer, both of you enter into a contract that includes terms and conditions. These can be made orally by agreeing over the phone or in writing by signing a document or clicking an “I agree” button on a webpage. A written agreement that clearly states the terms and conditions, including the cancellation policy, is recommended. Make sure your contracts comply with national unfair contract terms laws that protect consumers from significant imbalance in rights and obligations and the business from unreasonable terms.

Examples of unfair terms include the business being able to cancel the terms of the contract without the consumer being able to do the same, the consumer being liable for things that are outside of his or her control, the business charging the consumer’s credit card without notice or an opportunity to dispute the charges, etc.

You should make sure that consumers are dealt with fairly in your view. If a court finds an unfair term, it will be treated as if it never existed and if the contract can operate without it, the contract will still be binding.

You should also provide a proof of transaction as soon as possible after a transaction if a consumer has purchased something worth more than $75 excluding GST. For lower priced items, the consumer may ask for a receipt which you should supply within seven days of being asked. A GST tax invoice is sufficient proof of transaction. It should clearly state the business name, ABN, CAN, date of supply, products or services supplied to the consumer and the corresponding price.

A consumer may also ask for an itemised bill that shows how the price was calculated, the number of labour hours, the hourly rates and a list of materials used with the amount charged for them. A consumer may ask for this within 30 days the services are supplied or he or she receives a bill from you. You should provide a clear itemised bill for free within seven days of being asked.

It is important to include a cancellation policy in the booking agreement to avoid potential problems. It should state what will happen in case a booking is cancelled because of events beyond all parties’ control. For online bookings, the terms and conditions should be easily available on the website as failure to disclose these could be considered unfair. Cancellation fees and charges should reflect your reasonable costs so it won’t be considered as penalties, which generally can’t be enforced.

Sky Accountants Sunbury

As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a business, accounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

  1. Here are two other ways we help business owners grow their business:
  2. Take our free online assessment and see how much your business is currently worth (free 30page detailed report included)
  3. If you are looking to change Accountants or need advice on how to grow your business, organise a 1on1 session with a Sky Business Expert here

Email Address: info@skyacc.com.au

Sky Accountants Ballarat & Bookkeepers Ballarat

Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Sunbury & Bookkeepers Sunbury (Melbourne)

Sky Accountants Gisborne & Bookkeepers Gisborne (Melbourne)

Phone: 03 97444522
Sunbury Office Address: Suite 13, 33-35 Macedon Street, Sunbury, Victoria 3429, Australia
Gisborne Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3340

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