Highlights from News Alerts:

• Research & Development Update
• Federal Budget Issues For SMEs
• Characteristics of a Well Run Business
• Family Businesses
• New Paper - COMET
• Budget / Cashflow Forecast Time
• Annual Review Check List
• Business plans are as important for business people as maps are for tourists
• Frequently Asked Questions
• Business Recommendations
• Taxation Issues For Different Turnover Levels For Small Operators
• Exporting
• Selling A Business
• Business Development Stratagies For Your Clients
• Starting Out In Business
• New Business Recommendations
• Implementation Of A Seminar Programme
• Research & Development
• R & D Tax Rebates For Small Companies

URGENT UPDATE: ACCOUNTANTS ESCAPE MODERN AWARD COVERAGE

URGENT UPDATE: ACCOUNTANTS ESCAPE MODERN AWARD COVERAGE

In a remarkable, last-minute turn around late on Friday, the Australian Industrial Relations Commission (AIRC) announced that accountants would be excluded from coverage by the Miscellaneous Modern Award 2010. This new Modern Award, due to commence operation in just 3 weeks on 1 January 2010, was to extend Award coverage to accountants and other professionals not previously bound by an Award.

Had accountants become bound by the Modern Award all accounting practices would have been forced to review their existing terms and conditions of employment provided to staff and begin paying penalties and loadings in accordance with the new Award. This had the potential to expose accountancy practices to a huge array of new expenses, as well as the risk of fines being imposed by Fair Work Australia for even minor breaches of the new Award conditions.

Very few accounting practices were prepared for Award coverage on 1 January, mainly due to the vaguely named Miscellaneous Modern Award 2010 receiving very little attention and scrutiny. Workforce Guardian has carefully followed the development of this Award on behalf of our customers and has been working pro-actively with our customers to ensure readiness for any eventuality.

But don't celebrate just yet: Modern Awards will develop and evolve over time and there is no guarantee coverage will not be extended in the future. The last few months should serve as a timely reminder of the importance of 'locking in' the terms and conditions which apply to your accountants through comprehensive contracts of employment or 4-year Enterprise Agreements. Just because accountants have dodged the bullet this time certainly doesn't meant shots won't be fired again in the future.

Also keep in mind that unions are very keen to see Award coverage continue to expand as this, in turn, increases each union's potential membership base. As reported by Steven Scott and Mark Skulley in the Financial Review on 20 November, 'Employers fear the overhaul of the award system will allow unions to expand into professional sectors'. In our opinion, that's a well-founded fear!

Remember that the 10 new National Employment Standards will still commence on 1 January 2010 and that every state (except Western Australia) will shortly transfer their industrial relations powers to the Commonwealth Government meaning partnerships and sole-traders across Australia will become bound by the Fair Work Act for the first time.

And lastly, financial planners and clerical employees will be covered by the Banking, Finance and Insurance Industry Modern Award and the Clerks Private Sector Modern Award respectively, so don't stop thinking about Modern Awards just yet!

It has never been more important for your practice to audit employee files to ensure full compliance and for your practice to consider introducing an Enterprise Agreement to protect existing terms and conditions of employment, as well as your workplace's unique culture.

So what steps should you be taking right now to prepare for 1 January 2010? Here's a few 'quick wins' to get you started:

• You can call us for a product demo on 1300 659 563 or email sales@workforceguardian.com.au
• Or email us to explore your Enterprise Agreement option at david.bates@workforceguardian.com.au
• Why not ask about our free online education webinars? email webinars@workforceguardian.com.au
• Or read about what our customers have to say about the service: /www.workforceguardian.com.au/why/testimonial-mbt.php

Research & Development Update

We advised you recently of the changes that the Australian Government has announced for a wide range of research activities undertaken by the Government. Details are included in:-

• Backing Australia's Ability 2 - Issues For SMEs - Paper 28.10

• Research & Development For SMEs - Paper 14.40
• Research & Development Tax Deduction - Paper 12.10
• R&D Eligibility Checklist For 125% Tax Deductions - Paper 12.11
• R&D Tax Rebates For Small Companies - Paper 12.13

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Federal Budget Issues For SMEs

The Federal Government has announced it's commitment to Innovation Technology Development in Australia and Research & Development by announcing "Backing Australia's Ability 2" and the Federal Budget being presented to Parliament.

We have added a new section:-

Section 28 - Government Proposal, which includes two new papers:-

• Federal Budget 2004 Issues For SMEs - Paper 28.01
• "Backing Australia's Ability 2" Issues For SMEs - Paper 28.10

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Characteristics of a Well Run Business

Have you had clients asking about the characteristics of a well run business? In one paper in ESS BizTools, we have tried to summarise the key characteristics that a small/medium enterprise operator should abide by if they wish to run a successful business.

The key characteristics listed are:

• Characteristic One - Personal Capacity and Development
• Characteristic Two - Excellent Customer Knowledge & Service
• Characteristic Three - Excellent Product/Industry Knowledge
• Characteristic Four - Excellent Systems
• Characteristic Five - Excellent Analysis of Results
• Characteristic Six - Excellent Cash Control
• Characteristic Seven - Excellent Stock Management
• Characteristic Eight - Excellent Work in Progress Control
• Characteristic Nine - Excellent Debtor Control
• Characteristic Ten - Excellent Cost Control
• Characteristic Eleven - Excellent Staff Management, Motivation and Communication
• Characteristic Twelve - Excellent Marketing Expertise/The Ability to Assess Market Place Opportunities
• Characteristic Thirteen - Ability to Change with Market Conditions/Prices Review
• Characteristic Fourteen - Excellent Assessment of Competitors
• Characteristic Fifteen - Capital Base
• Characteristic Sixteen - Use of Professional Advisors: Accountant - Banker - Solicitor
• Characteristic Seventeen - Networking
• Characteristic Eighteen - Excellent Planning
• Characteristic Nineteen - Excellent Quality Control
• Characteristic Twenty - Excellent Management/Administration

The paper (Paper 06.080 - Characteristics Of A Well Run Business) is attached for your convenience. Handing this paper to clients can be a great way of generating discussion leading to the supply of "business of business" services for clients so that they can develop outstanding businesses.

We would recommend that you distribute this email to all members of your business services team so that they are familiar with the benefits of ESS BizTools.

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Family Businesses

Family businesses play a very important role in the Australian small/medium enterprise businesses. Some family businesses have become very large businesses in Australia and other parts of the World.

ESS BizTools includes a detailed commentary on Family Businesses presented in nineteen papers.

There are also two seminars on Family Businesses:

• One hour seminar titled - "Introduction To Family Businesses". This can be located in "Seminars and Papers" - Seminar 1150. The recommended admission charge is $25.00.
• Six hour seminar titled "Family Business Seminar". This can be located in "Seminars and Papers" - Seminar 570. We suggest that this seminar be presented in two 3 hour sessions. The recommended admission charge is $150 to attend the total six hour seminar.

Attached is a sample of the Family Business papers - Paper 10.01 - "Family Businesses - What Are They? To view any of the other papers in this Section (which are listed below), go to Section 10 - Family Businesses on our web site - www.essbiztools.com to view, download or print as required.

Section 10 - Family Businesses:

• Paper 10.01 Family Businesses - What Are They?
• Paper 10.05 Family Businesses - Making Them Work
• Paper 10.06 Planning The Family Business
• Paper 10.07 Family In The Business
• Paper 10.10 Disputes In Family Businesses
• Paper 10.11 Marriage Breakdown - Effect On Family Businesses
• Paper 10.20 Business And Family Investments
• Paper 10.30 Directors Of Family Companies
• Paper 10.36 Bringing In Outside Management
• Paper 10.50 Succession Planning - Why Is It Necessary?
• Paper 10.51 Financial Consideration In Succession Planning
• Paper 10.52 Succession Problems
• Paper 10.53 Management Issues In Succession Planning
• Paper 10.54 Financing Succession
• Paper 10.55 Check List For Succession Planning
• Paper 10.60 Business Structures For Family Businesses
• Paper 10.64 Family Charter/Constitution
• Paper 10.66 Estate Planning In Family Businesses
• Paper 10.67 Retirement Planning In Family Businesses

If you have any queries or comments on ESS BizTools, please do not hesitate to contact me.

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

New Paper - COMET

We have added a new paper on the AusIndustry Commercialising Emerging Technology (COMET) Programme.

The COMET Programme is presented around Australia by 17 Business Advisers (Peter Towers is the North Queensland/Northern Territory COMET Business Adviser). For eligible clients, AusIndustry provides financial assistance of up to 80% of the approved costs to a maximum of $100,000 subsidy for such activities as:

• Strategic or Business Planning
• Market Research
• Management Team Job Descriptions
• Intellectual Property
• Finalising Prototype
• Proven Technology

Applicants also need to demonstrate that they require the assistance of the Business Adviser for business mentoring and getting "investment ready".

At an Australian Venture Capital Conference in Darwin on 1st July 2002, the Chairperson of the Australian Venture Capital Organisation, Mr Greg Smith, of AMP Henderson, indicated that venture capital companies agree to finance about 1% of the applications that are made to them. This highlights the high requirement of clients who wish to raise equity capital being adequately briefed on getting "investment ready".

COMET is a programme which can assist your clients to raise equity capital to commercialise their new innovations. A copy of the new paper is attached.

If you have any queries on any aspects of the COMET Programme, please do not hesitate to contact me.

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Budget / Cashflow Forecast Time

It's an ideal time to be preparing Budgets and Cashflow Forecasts for clients and then encouraging them to commission you to update the Budgets and Cashflow Forecasts on a monthly or quarterly basis.

ESS BizTools contains a number of papers relative to Budgets and Cashflow Forecasts which you will be able to use to educate clients on the Budget/Cashflow process i.e.

• Paper 05.035 - Budget And Cashflow Forecasts
• Paper 21.035 - Budgets/Cashflow Forecast Preparation
• Paper 21.038 - Budgets/Cashflow Forecasts Monitoring
• Paper 37.001 - Cost Control - An Overview
• Paper 06.010 - Break Even Calculation

These papers, including the powerpoint presentations can be downloaded from the ESS BizTools web site:

There is also a seminar - "Introduction To Budgetting Seminar" - which is a one hour seminar introducing clients to budgetary processes. The recommended seminar fee is $25.00.

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Annual Review Check List

All businesses should be conducting an annual review to ensure the things that they plan to do have in fact been undertaken and that the secrets of the business are correctly recorded.

In ESS BizTools we have a paper - Check List For Succession Planning - Paper 10.055. This contains a check list of 35 items which can assist a business in conducting an annual review of its operations.

We recommended that you download the paper and use it as a check list to conduct a review of the affairs of your business clients.

This review will enable you to conduct a full review of your clients' business activities and in many cases will lead to a request for additional work to be undertaken in the business planning, budgeting or succession planning areas.

Additional papers are contained within ESS BizTools on these subjects.

Kind Regards

Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Business plans are as important for business people as maps are for tourists

It’s the time of the year when many clients start thinking about Business Plans. Its also the time when a number of our subscribers have expressed a desire to start doing some business planning work. ESS BizTools can assist you to prepare Business Plans for clients.

Section 09 - Business Planning Section - contains thirteen papers as an introduction to the preparation of Business Plans. (Attached is Paper 09.20 - Planning To Succeed).

Section 21 - Business Planning Questionnaire - contains sixty Business Plan Questionnaires which can be used to conduct Think Tank Review Meetings with your clients. Obviously, if you need to amend the Questionnaire to suit a particular client's requirements, you can do so.

There are two seminars featuring business planning:

• Seminar 1130 - a one hour seminar "Introduction To Business Plan Seminar" includes three papers which give a good introduction to the preparation of a Business Plan.
• For a more detailed overview of business planning, Seminar 550 - "Business Planning Seminar" is a nine hour (recommended 3 x 3 hours) seminar that considers a wide range of issues pertaining to Business Plans. It contains sixteen papers, including a full review of the Business Plan Questionnaires.

The seminars could be presented for clients or used as staff training so as to familiarise your team members with the concept of the preparation of a Business Plan.

The recommended price for the seminars is:

• 1 hour seminar $ 25
• 9 hour seminar $200

If you have any queries or comments relating to Business Plans, please do not hesitate to contact us.

Good Luck!
Kind Regards
Peter Towers FCPA FAICD MIMC
MANAGING DIRECTOR

Frequently Asked Questions

Can "ESS BizTools" be "branded" with my firm's name and address details and in so doing personalise the material being distributed?
Yes.... "Header" and "Footer" space has been provided to enable firms to brand the "ESS BizTools" material with their details. Simply download the Word Document and edit as required. This feature is available in the Papers and PowerPoint Presentations. It is also possible to edit within the Paper/PowerPoint, especially some of the sample material - thus making it more relevant to your particular location.

Can I copy the material contained within "ESS BizTools"?
Yes.... A subscriber to "ESS BizTools" is authorised to copy papers for use within their practice. This could either be:

• to hand out to clients after an interview, thus helping to re-enforce the issues covered during the interview; or
• as handouts at a seminar

One of our subscribers has sent Papers of interest to his business clients and, after charging for this service, has recouped his outlay in "ESS BizTools".

Business Recommendations

This section sets out suggested papers to be distributed to clients, based on the client's level of business experience. (It is assumed that you would probably charge for this service).

The categories contained within Business Recommendations are:

• Starting a Business
• Introductory Management
• Experienced Management
• Dealing with Banks
• Business Planning
• Corporate Governance
• Preparation and use of periodic financial accounts
• Business Networking
• Government Assistance - Research & Development
• Exporting
• Marketing
• Family Businesses

We recommend that you progressively distribute the nominated papers over a period of time, so as to reinforce your professional relationship with the client and promote your practice as being a practice committed to the profitable development of its clients' businesses.

Taxation Issues For Different Turnover Levels For Small Operators

I had that question asked of me last year and for that reason I've included in the 2001 web version of ESS BizTools, six papers that consider specific taxation issues dependent on the business' turnover. The papers are:

• Paper 12.30 - Turnover Under $50,000 - Specific Taxation Issues
• Paper 12.31 - Turnover $50,000 To $1m - Specific Taxation Issues
• Paper 12.32 - Turnover $1m To $2m - Specific Taxation Issues
• Paper 12.33 - Turnover $2m To $5m - Specific Taxation Issues
• Paper 12.34 - Turnover $5m To $10m - Specific Taxation Issues
• Paper 12.35 - Turnover $10m To $20m - Specific Taxation Issues

I recommend that you brand the papers with your firm's name and address details and distribute them to clients, with an appropriate charge.

Exporting

ESS BizTools contains an excellent paper (Paper 14.30 - Export Market Development Grant) which sets out, in an orderly manner, a summary of how the Export Market Development Grant operates and, more importantly, contains ten forms to assist in the preparation of the EMDG Application Form.

These forms are:

• Overseas Market Visitation Sheet
• Overseas Market Visitation Expense Sheet
• Overseas Market Visitation Summary Sheet
• EMDG Overseas Market Visitation Expenditure
• EMDG Overseas Representation Expenditure
• EMDG Communication Costs
• EMDG Product Sample Costs
• EMDG Trade Fairs, Literature and Advertising
• EMDG Marketing Consultant
• EMDG General Costs

You could either brand the paper and send it to your exporting clients (charging for the paper) or you could utilise the forms to earn professional fees for your firm from the preparation of the EMDG Grant Application.

Selling A Business

Would it have helped if you could have sent the client a check list to assist them in preparing their business for sale?

ESS BizTools contains three papers/check lists which can be branded with your firm name and address details and given to clients to assist them in planning for the sale of their business.

In my experience many people either have unrealistic expectations as to the value of their business or they sell the business for far less than its worth. In both instances, if the client had developed a proper "sale of business" strategy, they could have achieved a far more satisfactory result.

The ESS BizTools papers will assist in complimenting the advice given to clients relative to the sale of their business. The papers are:

• When Is The Best Time To Sell? (Paper 36.01)
• Check List For The Sale Of A Business (Paper 36.10)
• Valuation Of A Business (Paper 36.50)

Starting Out In Business

You know that you should send him/her some information on the pitfalls of starting a business, but you don't have the time to prepare it. Don't worry.... ESS BizTools contains 11 papers which have been specifically chosen as being ideal papers to be progressively forwarded to a client who is just starting out in business.

The papers are contained under the menu heading "Business Recommendations" on the ESS BizTools web site, namely:

• Paper 01.01 - Small Business Overview
• Paper 01.02 - Pitfalls In Starting A Business
• Paper 01.03 - Business Setup And Purchase
• Paper 12.30 - Turnover Under $50,000 - Specific Taxation Issues
• Paper 12.31 - Turnover $50,000 To $1m - Specific Taxation Issues
• Paper 12.32 - Turnover $1m To $2m - Specific Taxation Issues
• Paper 01.04 - Rating Chart To Assess Your Strengths And Weaknesses
• Paper 01.05 - Who Can Assist Small Business Operators?
• Paper 01.06 - Have You Got Enough Money To Go Into Business?
• Paper 01.07 - What Makes A Business Successful?
• Paper 01.50 - Sources Of Finance

We recommend that over a six week period you progressively forward these papers to your client, asking he/she under a covering letter, to contact you should any queries arise.

The benefits of using ESS BizTools in this way is that it immediately enables you to communicate with a new client, forwarding the client reading material which will assist him/her in managing the business and at the same time will point him/her towards business development activities being offered by your firm.

It will also reinforce to the client that he/she has made the right decision in choosing your firm and that you are a pro-active business development firm....not just a compliance preparation firm.

In the Business Recommendations Section, you can also find other uses for ESS BizTools, under the headings:

• Introductory Management
• Experienced Management
• Dealing With Banks
• Business Planning
• Corporate Governance
• Preparation And Use Of Periodic Financial Accounts
• Business Networks
• Government Assistance - R & D
• Exporting
• Marketing
• Family Businesses

New Business Recommendations

One of the changes we have made is that the Business Recommendations Section has been improved in that it now has a direct link to the papers mentioned in the various sections. You can now view the summary of the paper and download/print the paper/powerpoint as required.

Business Recommendations contains material for specific levels of business experience including:

• New To Management (client starting a business)
• Introductory Management (client in business for a couple of years)
• Experienced Management (client is an experienced business person)
• Dealing With Banks
• Business Planning
• Corporate Governance
• Preparation And Use Of Periodic Financial Accounts
• Business Networks
• Government Assistance - R & D
• Exporting
• Marketing
• Family Businesses

Are All Of Your Team Members Aware Of ESS BizTools?

We have received some feedback from subscribers over the last few weeks which indicates that not all of their team members were aware that ESS BizTools was available to assist in giving client advice. In most cases, the Partners acknowledged that this was an oversight. Are all members of your team aware of ESS BizTools and the business development material that it contains?

Implementation Of A Seminar Programme

A full list of the seminars contained in ESS BizTools is under the menu heading "Seminars & Papers" on the ESS BizTools web site.

Our suggestion is that you run an initial 4 x 1 hour seminars, either weekly or fortnightly to get your clients and prospects involved in a seminar programme. Many firms have decided that 5.30pm to 6.30pm is a good time to run a 1 hour seminar. But you could run it as an early morning or lunch time seminar if that suits your practice. The choice is yours.

Our suggestions on your initial seminar programme would be:

• Characteristics Of A Well Run Business Seminar (Seminar 1110)
• Profit Making Seminar (Seminar 1000)
• Differentiate Your Business (Seminar 1010)
• Introduction To Marketing (Seminar 1050)

Select "Seminars & Papers" from the menu headings on the left hand side of the screen. In the second paragraph there is a download - "DOWNLOAD THE ZIP FILE". This is generic material for seminars in general and is only required to be downloaded once. This download contains such things as:

• Complimentary Invitation
• Explanation of Check List
• Invitation to Key Note Speakers (if you are inviting external persons to present papers)
• Seminar Attendees List (which is a list of the persons attending the seminar, which can be useful to the presenter)
• Venue Booking Confirmation (if you are using an external location, its a good idea to confirm the booking in writing. This form can be reproduced on your letterhead)
• Seminar Registration Acceptance Letter (which can be produced on your letterhead and sent back to the client/prospect acknowledging their registration)
• Seminar Attendees General Evaluation Form (which asks for attendees' comments in relation to general matters concerning the seminar)
• Seminar Report - General Evaluation Form (is a summary of the comments made by attendees)
• Thank You Letter To Key Note Speaker (can be reproduced on your letterhead)

When you select the required seminar, you will firstly be given the option to "DOWNLOAD SEMINAR ORGANISATION MATERIAL". This will give you:

• Advertisement (if required)
• Contents (which gives the name of the paper, paper number and the recommended presentation time for that paper)
• Features (which is the summary sheet stating the names of the papers to be presented)
• Invitation (which you can print up on your letterhead to send to clients or prospects)
• News Release (which can be edited to suit your firm and distributed to the media)
• Registration Form (this is a specific registration form designed to suit this particular seminar.
• Timetable - With Times (so you can have an idea of the suggested timetable to be adopted for this seminar. You can then use this to develop your own timetable, which is contained in the next form)
• Timetable - Without Times (you would complete these times yourself to suit your requirements)
• Individual Paper Evaluation Form (which is a form that can be printed and handed to attendees for them to evaluate the seminar)
• Seminar Report - Individual Papers Evaluation Form (this is a form which enables you to summarise the comments made by the individual attendees)

Each of these forms can be "branded" with your firm's name and address details so as to customise it to suit your firm.

When you are ready to run the seminar, you can "DOWNLOAD PAPERS" or "DOWNLOAD POWERPOINTS". This material can be "branded" with your firm's name and address details etc.

The "DOWNLOAD PAPERS" download presents you with a Word Document for each paper. The material should be downloaded into an appropriately named directory for any required editing and reproduction prior to distribution to attendees. If you wish to use the PowerPoint Slides, these can also be downloaded and "branded" as required.

If you wish to use one Registration Form to cover the four seminars, you can use the "Multiple Seminars Registration Form". This form can be found in the generic material download - "DOWNLOAD THE ZIP FILE" mentioned at the start of this News Alert.

We hope you now have a better understanding as to how ESS BizTools seminar material can assist you in developing business development strategies for your practice.

If you wish to run a more in-depth seminar, our suggestion is:

• Business Management - Firm Foundations Seminar (Seminar 1520) - (this seminar has been designed for presentation over 15 hours. The material has been configured so that it can be presented in 5 x 3 sessions, but obviously you can vary that if required.

The Specific Organisational Material which relates to this seminar can be obtained by selecting "DOWNLOAD SEMINAR ORGANISATION MATERIAL". You are then given 5 sessions of downloads. This will enable you to download the particular papers/powerpoint slides which relate to each of the five 3 hour sessions. The system works exactly the same as that described for the one hour seminars.

If you have any queries on any aspect of presenting seminars using ESS BizTools, please do not hesitate to contact us.

Good luck with your seminar presentation!!