Expert Tips: Business Advisory Services

SWOT Analysis Helps

Business Advisory Services Updates

Accountants can help SMEs by encouraging the preparation of a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis at the beginning of a new calendar year. You could encourage your clients to take some quality time and sit down alone or with their team to consider the key areas of the business. For the individual business activities, it’s a good idea to ask the following...

Key Drivers for ‘Predictive Accounting’

Business Advisory Services Updates

The key driver for utilising ‘Predictive Accounting’ is to clearly summarise the various “non-financial items” before attempting to produce a budget. ‘Predictive Accounting’ embraces a systematic approach to the preparation of budgets, starting with basic information relating to: The types of products to be manufactured. The targeted quantity of the various products to be...

Succession Planning Starts With A Conversation

Business Advisory Services Updates

Succession planning is not something that business operators should think about when they get old and are ready to retire. It is a process that should be thought about in every segment of the business journey. Questions that you could ask: What is your vision for the business? Who would take over from you if something happened to you? If someone walked in today and asked whether you...

Superstar for Budgeting and Forecasting?

Business Advisory Services Updates

In our final Business Advisory Services conversation on Wednesday 16th December at 12-noon AEDT (11.00am AEST), Peter Towers, Managing Director of ESS BIZTOOLS will be joined by Paul Barnaby, Chartered Accountant and Managing Director of Beyond Accounting Technologies. Paul’s proud claim is that he can turn an accountant into a ‘budgeting and forecasting superstar’ in a relative short...

Predictive Accounting Encourages Discussion

Business Advisory Services Updates

Predictive accounting is an important part of the delivery of Chief Financial Officer Services because it requires accountants to discuss with clients all aspects of their business and then to commit that vision into Budgets, Cashflow Forecast and Predicted Balance Sheet to determine the level of investment required in stock, debtors, and capital expenditure.  The aim is to determine what...

Predictive Accounting Helps

Business Advisory Services Updates

Knowing the financial impact of decisions, before a client implements those decisions, is very important for financial stability. The process commences with an examination of the key drivers relative to the physical number of units to be produced and the calculation of the direct costs that will be involved in that process.  The calculation of estimated stock holdings can be made based on...

Accounting For Departments As If They Were Businesses

Business Advisory Services Updates

  Benchmarking is a great tool for accountants to utilise to analyse a business so that information on the business’ performance can be conveyed to the directors, owners, leadership team. To enable credible figures to be produced, it is very desirable that the individual departments within a business are segregated so that separate Profit & Loss Accounts, Key Performance Indicator...

Every Question Should Lead to a Service Engagement

Business Advisory Services Updates

Now is the time for accountants to be having a cup of coffee with SME clients to help set the business’ strategic plan for 2021. Some of the questions that you could ask include: What are your top 5 sales lines? What mark-ups do you make from these products? What are your bottom 5 sales lines? What mark-ups do you make from these products? Do your team members know the composition of...

Scaling Up

Business Advisory Services Updates

As we consider the challenges, potential problems and rewards that might be possible in 2021, SME leadership teams and their accountants could do well to incorporate the strategies of “scaling up” in their strategic plans for the next few years. The key concepts of “scaling up” require businesses to: Attract and keep the right people - leadership team and team members with adequate...

Strategic Planning Other Issues

Business Advisory Services Updates

There are numerous other areas in the strategic planning process in which accountants can assist SMEs, including: Review of charge out rates being utilised by tradies to ensure that the charge out rates will ensure that, if productivity is in accordance with the estimates, the targeted profit will be generated. Review of retail businesses’ expectations of product mix and mark-ups relative...

Strategic Planning 2021

Business Advisory Services Updates

Strategic Planning 2021 There is a strong expectation that 2021 will be a better year than 2020.  However, this will not occur unless there has been some strategic planning undertaken over the next 4 weeks so that the strategies and expectations for 2021 are identified and promoted to the team. Accountants, who are supplying Business Advisory Services, will be able to assist SMEs to...

Crowd Sourced Funding Game Changes

Business Advisory Services Updates

Crowd Sourced Funding Equity Raising has certainly introduced new opportunities for SMEs as well as for accountants and business advisors. SMEs can access a retail investor audience for a fraction of the typical cost for public companies under a prospectus. Proprietary limited companies can now have a potentially unlimited number of investors under the Crowd Sourced Funding regime...

Business Strategies

Business Advisory Services Updates

Accountants could spend some quality time with their SME clients at present planning their business strategies for 2021. Why not have a cup of coffee with your clients and discuss these strategies with them, particularly those clients who have received JobKeeper payments. In the Business Advisory Services Update Webinar/Conversation on Wednesday 9th December at 11.00am AEDT (10.00am AEST)...

Government Grants Awareness Helps

Business Advisory Services Updates

There are hundreds of government grants available from the Australian, State and Territory governments, primarily targeted at businesses with turnovers under $50 million per annum. The range of services that government grants will finance include: Funding of research and development activities undertaken by a company at a rate of 43.5% of eligible research and development expenditure. Up...

Debtors’ Management a Problem Area for Many Businesses

Business Advisory Services Updates

Debtors’ management is often not given a high priority in a business and this can lead to high levels of debt owed to the business. Accountants can assist their clients to improve their debtor’s management systems by encouraging a monthly calculation of “Debtors’ Days Outstanding”. Debtors efficiency will be enhanced by the utilisation of a written debtors’ management system which...

Passing the “Principles Test” Helps Raise Funds

Business Advisory Services Updates

Young companies can qualify for the “Early Stage Innovation Company” status by passing the “Principles Test”. Five questions need to be answered: Is the company genuinely focused on developing for commercialisation one or more new, or significantly improved products, processes, services, marketing or organisational methods? Is there high growth potential? Potential to successfully...