Financing - a key component of meeting the future
Business Advisory Services Update
In the Thomson Reuters White Paper released last week, a key comment was, “The past has no future.” In the discussions relative to financing of businesses, accountants were put on notice that SMEs were seeking assistance in the sourcing of loans or raising capital from the market.
This highlights a very important role for accountants to include in your work brief – the monitoring of cash flow to determine if additional funding is required, then assisting with the preparation of the documentation for raising of capital under:
- Section 708 of the Corporations Act – can raise up to $2m from a maximum of 20 investors in 12 months.
- Crowd Sourced Funding Equity Raising – if the company’s turnover and gross value of assets is under $25m, the company can raise up to $5m in 12 months.
- If a company under 3 years of age is undertaking the development of a new product, process or service, Early-Stage Innovation Company is a good consideration, as the company receives the investment and the investors receive an incentive from the government
To raise capital or to seek a loan, companies are going to require a business plan, budgets, cash flow forecasts and projected balance sheet that reflect the company’s expected performance for the next 3 years.
These type of services will considerably enhance the image of your firm and assist in talent attraction and retention because you have offered your team interesting and challenging work
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