The change to an electronic newsletter will mean that we can quickly and efficiently communicate with you on a more regular basis. I hope you enjoy our first edition.

Things are a little different with the departure of Grant Jackson, but the T in Taggart still remains the same. 

It is an exciting time for me to lead a young and vibrant accounting team that is managed by Melanie Hamilton and Cameron Tink. With their help and the support of Peter, Cathy, Natasha, Andrew, Kylie, Amber and Julie, I know that the Taggart team can ensure that we meet our business motto to be partners in our clients business and wealth creation.

The great world recession hasn’t been as bad for Australia as most economists predicted. Yes, we have had some negative growth but overall the Australian economy, and indeed the Hunter’s, is holding-up better than most western economies.
It is early days in the recovery process so all business owners need to be observant to trends within their business. Continue to watch your costs, regularly monitor cash flow and keep positive about your sales and the messages you are delivering to your customers.

Australian interest rates are on the rise with a .25% increase announced by the Reserve Bank this month. I agree with most economists who are predicting that interest rates will continue to rise over the next 12 months. Expect a cash rate of between 4-5% by December 2010, which translates into home loan interest rates of around 6.5-7.5%.

It is now time that you have a talk with your banker about what impact these interest rate rises will have on your cash flow and loan repayments. Talk to them about the best options available to you and see if you can fix a percentage of your loan. Changes in the Australian Banking landscape over the past 12 months have now meant that your bank manager is one of your most important business allies.

Leading Economist Michael Pascoe gave a quote from the Godfather movie, when describing the type of relationship you should have with your bank manager. The quote from the movie was “Keep your friend close and your enemies closer”. He added that you need to keep your bank manager closer than that.