SMEs Need Accounting Support

Good day! 

Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.

SMEs Need Accounting Support

The current business conditions are causing a large number of SMEs considerable difficulties. There are many vital roles that Accountants and Bookkeepers can play in assisting SMEs to survive.

ESS BIZTOOLS is presenting a complimentary webinar on Wednesday, 14 August 2024, at 10 AM AEST with Peter Towers, Founder and Managing Director, and Amanda Gascoigne, Amanda Gascoigne Consulting, discussing “Fiscal Management – A Starting Point.” We have the pleasure of inviting you to participate in this webinar – to register, please click here.

The former Taxation Commissioner, Chris Jordan, warned in 2022 that many accountants needed to adopt a “New Business Model” if they were going to remain viable in the next few years.

He commented that accountants should be looking to “diversify to remain viable long term and should focus on becoming a ‘Brilliant and Trusted Advisor.’”

In the webinar “Fiscal Management – A Starting Point,” Amanda and Peter will discuss the environment that SMEs are now operating in and will recommend additional services and support that Accountants and Bookkeepers could provide to assist SMEs to survive and prosper during this difficult period.

The current challenges confronting SMEs include:

• High Interest Rates
• High Inflation
• Business Failures

Paul Robson, CEO of MYOB, commented recently:

• “Fiscal Management Skills Not Evident in Many SMEs”
• “Significant Problems After 6 Months”
• “Lack of Understanding of Suppliers' Payment Terms”
• “Lack of Familiarity with Credit Terms”
• “Inappropriate Systems for Control of Debtors”
• “Not Planning for Payments to the Australian Taxation Office”

The Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, commented last week:

• “ATO in Hot Pursuit of Tax Debt from SMEs”
• “Business Conditions Have Deteriorated 3.5% in the Last 12 Months”
• “Concerns by Small Business Owners About Their Business Viability Have Increased”
• “Economic Activity Generated by Small Business Has Dropped from 40% in 2006 to 33% at Present”
• “Small Business Share of the Private Sector Workforce Has Dropped from 53% in 2006 to 42% Currently”

Most small and medium-sized accounting and bookkeeping firms provide the bulk of their services to SMEs; therefore, these challenges will affect accounting/bookkeeping firms' performance.

The former Tax Commissioner added, “Most Accountants Should Be Looking to Diversify to Remain Viable Long Term and Should Focus on Becoming a Brilliant and Trusted Advisor.”

SMEs really need this assistance from a “Trusted and Brilliant Advisor” to meet the problems that they are experiencing at present, including:

• Preparation of Realistic Business Plans
• Preparation of Budgets and Cash Flow Forecasts as the “Financial Interpretation of the Business Plan”
• Realistic Payment Times for Key Suppliers Included in the Cash Flow Forecast
• An Understanding of Debtors’ Management Systems
• Cash Flow Forecast Prepared on the Realistic Debtors’ Days Outstanding Figure Rather Than the “Dream” That Every Customer Will Pay on Time
• Implementation of Systems That Provide the Business Management Team with Key Information on a Daily Basis
• Preparation of a Weekly Performance Report/Profit and Loss Forecast with Associated Key Performance Indicators
• Preparation of Monthly Profit and Loss Accounts for All Operations and Budget Variation Reports

These items and others, including:

• Virtual CFO Role That Will Support SMEs
• Where Do You Start in Delivering Advisory Services?
• 52-Week Business Enhancement System
• Addressing the Knowledge Gap
• How Can Accountants/Bookkeepers Help?
• Product Packages and Training to Assist Accountants and Bookkeepers to “Deliver Advisory Services”

Will be discussed in the complimentary webinar.

Amanda and Peter are looking forward to presenting their suggestions to you on the “Delivery of Advisory Services,” which meets the description of a “Brilliant and Trusted Advisor to SMEs.”