Does Advisory Services Reflect How SMEs Rate Accountants
Advisory Services News - Issue 41
Good day!
Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.
DOES ADVISORY SERVICES REFLECT HOW SMES RATE ACCOUNTANTS?
SME Issues that Accountants/Bookkeepers need to relate to:
To understand the impact of advisory services on SMEs, a good place to start is the current challenges confronting SMEs:
- High interest rates
- High inflation
- Business failures and insolvencies
- Issues raised by Paul Robson, CEO of MYOB, in a “Financial Review” article in February 2024:
- Fiscal management skills not evident
- Significant problems after 6 months trading – implies not enough funding available at the beginning
- Lack of understanding of suppliers' payment terms – probably a key contributor to running out of money
- Lack of familiarity with credit terms – appeared to be an expectation that each credit customer would pay within 30 days
- Inappropriate systems for control of debtors – it’s important to implement a documented debtors’ system
- Not planning for payments to the Australian Taxation Office – was this not considered in the initial planning?
Did these firms receive adequate advice from an accountant before commencing their business?
The Australian Small Business Ombudsman, Bruce Billson, last week commented, “The ATO in Hot Pursuit of Tax Debt” – he was referring to tax debts owed by SMEs.
Mr. Billson also indicated that:
- “Small business conditions have deteriorated by 3.5% in the last 12 months
- The business operating environment has been declining in the past 2 years
- Economic activity generated by small business is currently 33% of GDP, compared to 40% of GDP in 2006
- Small businesses currently provide jobs for 42% of the private sector workforce, whereas in 2006 this was 53%”
These are the issues confronting SMEs – how would your clients score the services that you are providing to SMEs?
Tomorrow, we will discuss the challenges facing accountants and bookkeepers.
In recognition of the issues confronting SMEs, as well as accountants and bookkeepers, we are offering a special discount on our four product packages until 16 September 2024. You can find details of the significant discounts at www.essbiztools.com.au – click on Packages and Pricing.
