Accountant's Minute 213
The Financial Review Top 100 Accounting Firms for 2019 Report has again identified that many of the top 100 firms have expanded beyond traditional auditing and taxation work into higher margin consulting services and outsourced Chief Financial Officer Services.
“The future accountant seems to be heading towards a respected GP status, one’s own “financial GP” that then refers the clients to an in-house or external professional.”
Crowd Sourced Funding Equity Raising presents small to medium sized accounting firms a perfect introduction to consultancy services and outsourced Chief Financial Officer Services.
Many of the companies seeking to raise Crowd Sourced Funding Equity Raising will be clients of small to medium sized accounting firms which gives those firms the first opportunity to proactively offer a broader range of professional services thus enabling those firms to grow with their clients.
In Australia, the introduction of Crowd Sourced Funding Equity Raising is about seven years behind the other major industrialised countries all of which have achieved significant growth for small businesses and medium sized enterprises by giving them the opportunity to be able to raise capital of up to $5 million in a twelve month period from the public.
55 companies have raised $39.9 million thus avoiding having to borrow funds and eliminating the need for supplying security and personal guarantees.
A company seeking to raise capital as a Crowd Sourced Funding Equity Raising Company will require a well prepared Business Plan that charts the business’ planned operations for the next three years, Budgets and Cash Flow Forecasts that reflect the financial forecasts for the next three years, an awareness of the Crowd Sourced Funding Intermediary’s duties responsibilities and powers and the preparation of a Crowd Sourced Funding Offer Document.
At an average of $25,000 each for professional services to become “investment ready” for 55 companies this would be an investment of $1.3 million.
If 70% of these companies then engage their accountants to supply outsourced Chief Financial Officer Services at an average fee of $50,000 per annum this would represent $1.9 million that the current accountants should be able to secure if they have made the commitment to supply outsourced Chief Financial Officer Services to their clients.
There are strong expectations that in 2020 the Crowd Sourced Funding Equity Raising market in Australia will grow significantly just as it did in UK, USA and Canada.
As we approach the end of 2019 now is the time for accountants to prepare strategies to “claim this market” so that a range of Business Improvement Services can be offered in 2020.
The 55 companies that have successfully raised capital so far have been identified as belonging to 37 different industry classifications including Agtech, sport apparel fashion, food and beverage, hospitality, Fintech, energy, consumer, fashion, liquor, and many more.
If you would like to access the summary of the 37 industry tags that relate to the 55 companies that have raised capital together with the capital raising attributed to each Crowd Sourced Funding Intermediary and the detailed summaries identifying the capital raised for clients of each Intermediary, please visit www.essbiztools.com.au/crowdsourcedfundinglearnmore.
Want to know more about the opportunities that Crowd Sourced Funding Equity Raising gives to your accountancy firm to offer a broader range of professional services? If so, please join us for a Free Webinar “Crowd Sourced Funding Equity Raising Gives Accountancy Firms an Entry to Advisory Services” on 20 November 2019. commencing at 11:30am AEST / 12:30pm AEDT . To register please click here.
If you have any questions on any aspect of the assistance that ESS BIZTOOLS can supply to your accountancy firm please do not hesitate to contact us:
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Episode 213 - Crowd Sourced Funding Equity Raising Gives Accounting Firms an Entry to Advisory Services
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