Posted: 22 August 2017

Accountants, are you adding value to company directors?

With Crowd-Sourced Funding Equity Raising, available from 29th September 2017, now is an appropriate time to consider how accountants can help mentor small/medium enterprises for the challenges that company directorship presents.

The Australian government expects thousands of companies to take the opportunity to raise capital from the public over the next twelve months.

In the first phase (at least) of Crowd-Sourced Funding Equity Raising, the eligible entities will be unlisted public companies with a requirement of three directors.

Whilst many small/medium enterprise operators are company directors, the vast majority of them have never had the responsibility of stewardship of money invested in their companies by people who many of them will not know.

Crowd-Sourced Funding Equity Raising and Early Stage Innovation Companies offer businesses tremendous opportunities to add value, but also brings a whole new group of directors potentially into the full glare of public and governmental scrutiny.

ASIC and other government agencies will be closely observing this significant opportunity being given to small business – too many mistakes and the legislation will undoubtedly be tightened to make the whole process far more difficult for smaller companies to raise capital.

What can accountants do to assist company directors, from a small/medium enterprise background, master this process? Offer support to directors by presenting seminars on the “Role of a Director in Small/Medium Business” including encouraging directors to develop an “elevator pitch” on their company’s ambitions and why investors should want to join them in their business.

There are a number of opportunities for accountants arising out of the Crowd-Sourced Funding legislation with the first listings on intermediaries' platforms (website) scheduled from 29th September 2017. Now is the time to get prepared to assist your clients and prospects to be able to avail themselves of this unique opportunity to be able to raise capital from the “crowd”. At this stage Crowd-Sourced Funding is only available for unlisted public companies. The legislation enables propriety limited companies to be converted to an unlisted public company. Whilst there has been some debate about the requirement for companies to be unlisted public companies, some people with considerable experience in the process of raising capital for small companies are very supportive of the concept that capital is to be raised by unlisted public companies primarily because of the structure of public companies, corporate governance requirements and constitutions that reflect that the shareholders will be more than family and friends which is normally the case within a proprietary limited company.?rel=0&showinfo=0" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">

What benefits and services does the company offer to their customers and prospects?

Accountants could offer an overview of the key legislation that relates to company directors.

There is an opportunity for accountants to mentor new directors on corporate governance processes, including:
• A working knowledge of the company’s Constitution.
• Ensuring that adequate processes and systems have been implemented for:
• appointment of the managing director/chief executive officer
• systems for:
• asset acquisition
• development and protection of intellectual property
• accounting
• debtors
• inventory
• creditors
• bank accounts
• Workplace Health & Safety
• Human Resources/Fair Work Australia
• Risk Management
• Environmental Laws
• Cashflow Management
• Not trading whilst insolvent

There are many other matters with which many directors of these new types of companies will require assistance. This is a great opportunity for accountants to develop a new product stream – “Corporate Governance Reviews for Directors”.

ESS BIZTOOLS offers accountants a full range of material to assist with corporate governance mentoring to assist small/medium enterprise operators to take the big step of becoming a “de facto public company” within the ESS BIZTOOLS’ Gold Package.

We have a 25% discount available to you as part of our New Financial Year celebrations. This special promotion expires on the 31st August 2017. Please go to our website – www.essbiztools.com.au and click on “Subscriptions” to subscribe to take advantage of this special 12 months, 24/7 subscription per office of only $2,227.50 (incl GST).

Why not join us for our next free webinar on Wednesday 30th August 2017 at 12.30pm titled “Crowd-Sourced Funding – Great for SMEs and Accountants”. (Click here) to register to participate in this webinar.

If you have any questions or comments on any aspect of how you might go about using ESS BIZTOOLS’ Gold Package to assist you to deliver outstanding value-adding services to your clients, please don’t hesitate to contact us.

www.essbiztools.com.au

www.essbasip.com.au

www.essbizgrants.com.au

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