ESS BIZTOOLS - Business Advisory Services Update Podcast: Recent Episodes
Peter Towers
Based on our first issue of "From Talk to Action" series, this podcast episode discusses the following:
- Former Tax Commissioner's warning
- The future of Accounting and Bookkeeping is changing - are you ready?
- The declining demand for bookkeepers: a challenge or opportunity?
- Action Plan: future-proof your firm
- Debtor and supplier challenges are rising - is your firm prepared?
- The Advisory opportunity
- ESS BIZTOOLS: helping you transition to Advisory Services
- Special Officer; 50% off the Advisory Intro Package
In this episode of ESS BIZTOOLS Podcast, Peter Towers explores how systems drive business success for accountants, bookkeepers and business advisors. Discover how structured financial and management accounting processes – such as the 52-Week Business Enhancement System, Predictive Accounting, and Profitability Analysis – can help SMEs not just survive but thrive. Learn about key strategies for capital raising, succession planning and business evaluation, to enhance growth and efficiency. Get insights into how implementing these systems can set your firm apart and create new revenue streams. Don’t miss this deep dive into how systems can transform businesses in 2025!
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In this episode, Peter Towers, Managing Director of ESS BIZTOOLS, discusses the essentials of guiding clients through Research and Development (R&D) opportunities. He highlights the significant tax incentives available to Australian businesses engaged in R&D, and provides actionable advice for accountants, bookkeepers, and business advisors on supporting clients from idea generation to project planning. Peter emphasises the importance of establishing detailed records, understanding core activities, and securing intellectual property, along with practical steps for forming a company to qualify for R&D tax benefits. Tune in to learn how to help your clients leverage R&D for growth and innovation.
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In this episode of ESS BIZTOOLS Podcast, host Peter Towers dives into the evolving role of accountants in the business world, joined by distinguished guests Sam Salcman of Edwards Pearl and Andrew Geddes, co-founder of the Financial Management Research Centre (FMRC). The trio reflects on the transformation of the accounting profession, highlighting the importance of business advisory services and the integration of modern tools like ESS BIZTOOLS. They discuss how accountants can shift from compliance-focused tasks to becoming strategic partners for their clients, leveraging technology and financial insights to foster business growth.
The conversation also delves into the challenges and opportunities within the industry, including the adoption of virtual CFO models, addressing declining numbers in the profession, and fostering deeper client relationships. With anecdotes from decades of experience and a focus on the future of small businesses, this episode offers valuable insights for accountants, business advisors, and entrepreneurs navigating today's dynamic economic landscape.
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In this episode, Peter Towers dives into the intricacies of setting charge out rates for professional service firms. He covers essential considerations beyond simple cost calculations, such as service quality, industry reputation, and unique value-adds. Peter explains how firms can justify premium rates by offering enhanced advisory services, client education, and strong business acumen. He also emphasises the importance of understanding labour costs, productivity metrics, and competitive positioning. By following these strategies, firms can better communicate their value to clients and optimize their fee structures to support growth and profitability.
You can also access our podcast on:
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In this episode, Peter Towers addresses the critical issue of debtors management for SMEs facing financial challenges in Australia. He emphasises the importance of effective credit management and how poor practices, such as granting credit without proper systems, can lead to cash flow problems. Towers discusses common pitfalls SMEs encounter, including inadequate credit terms, lack of monitoring, and unrealistic assumptions about payment timelines.
This episode also highlights the role of accountants and bookkeepers in helping SMEs establish strong debtor management systems. This includes setting clear terms of trade, ensuring compliance with payment documentation, and actively following up on overdue accounts. Towers also notes recent legislative changes, like Australia’s Payment Times Reporting Act, aimed at improving payment practices, particularly by larger companies.
This episode serves as a guide for SMEs and their financial advisors to implement practical strategies for reducing outstanding debts, thereby enhancing cash flow and financial stability.
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This podcast episodes looks into Export Market Development Grant, the eligibility requirements, who are eligible and most importantly, how accountants and business advisors can generate revenue by assisting SMEs with the application process.
You can also access our podcast on:
- Amazon Music
- Apple Podcast
- Audible
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This podcast episodes looks into the essential aspects of what accountants and bookkeepers need to examine in order to ensure that their SME clients’ businesses are investment ready.
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This podcast covers the following issues affecting accountants and bookkeepers today:
- Australian Small Business Ombudsman Report
- Former Tax Commissioner's Warning
- Fiscal Management Issues - statement from Paul Robson, CEO of MYOB
- What do businesses need?
You can also access our podcast on:
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Featuring Trevor Marchant of Marchant Dallas, this podcast discusses the latest article produced by The Boss Factor Library.
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The SME market in Australia is now estimated to be around 2.5 million businesses. Many of them aspire to “scale up” by offering new services and expanding employment opportunities as they seek out new markets both in Australia and overseas.
These businesses need advice, just the same as the CEO operating a larger business needs advice. The real difference is that larger businesses employ most of the expertise that might be required in-house, whereas the vast majority of SMEs cannot afford to do this or they simply do not have enough work to keep a highly qualified motivated person fully engaged.
Nevertheless, they still need this critical input from a range of experts – not just accountants – if they are going to succeed.
In this new financial year, there is going to be a lot of challenges for the SME market, due to high interest rates, high inflation and the ever present threat of recession.
The services that you offer to your SME clients will have a significant bearing on their survival rate in business.
Peter Towers, Managing Director of ESS BIZTOOLS and Mark Holton, Director of SmithInk discuss How Accountants could navigate the market conditions that their SME clients are encountering in 2003/2004 with some insights from the Accountants Boot Camp and the Thomson Reuters White Paper
This podcast episode is presented by Peter Towers, Managing Director of ESS BIZTOOLS, and Andrew Geddes, the “public face” of FMRC. They discuss a wide range of issues affecting accountants implementing services beyond compliance, to assist SME clients to improve their business performance.
You can also access our podcast on:
Amazon Music
Apple Podcast
Audible
Spotify
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This podcast episode explains how a 52-week service is a great strategy that will bring growth, not just to your SME clients, but also to your firm.
You can also access our podcast on:
Amazon Music - https://amzn.to/3JCyC7a Apple Podcast - https://apple.co/3XVO2IH Audible - https://adbl.co/3xKmwDc Spotify - https://spoti.fi/3ZcOIKF YouTube - https://youtu.be/g6qVV5eJh0U
In this podcast episode, Peter Towers, Managing Director of ESS BIZTOOLS, addresses the question some accountants/bookkeepers ask, “Why should we get involved in Research and Development?”
Peter Towers, Managing Director of ESS BIZTOOLS, conducted an interview with one of his consulting clients, Duane Hunter. They discussed Duane’s “innovation journey”, which highlights the need for accountants to provide assistance to enable their SME clients achieve their objective of being able to turn their invention into a profitable, marketable product.
Peter Towers, Managing Director of ESS BIZTOOLS, and Trevor Marchant, Managing Director of Marchant Dallas, discuss the best use of The Boss Factor Library for Accountants, so not only you can generate more revenue but also attract and retain talent.
Peter Towers, Managing Director, ESS BIZTOOLS and Jordan Lowry, Director, Blackstone Business Group discuss attraction and retention of accountants and other issues facing businesses.
Peter Towers, Managing Director of ESS BIZTOOLS and Paul Barnaby, Regional Integration Consultant for PlanGuru and Managing Director of Beyond Accounting Technologies discuss using PlanGuru software to enhance Financial Forecasting.
Peter Towers, Managing Director of ESS BIZTOOLS discusses why Research and Development is very important for SMEs.
Peter Towers, Managing Director, ESS BIZTOOLS talks abut the Introduction to Virtual CFO Delivery, including the report card on the Australian Accounting Industry by the CommBank Market Pulse.
Peter Towers, Managing Director of ESS BIZTOOLS, present a podcast incorporating R&D – whilst not perfect, is important for SMEs and Are you aware of domain registration problems for SMEs?
Peter Towers, Managing Director of ESS BIZTOOLS and Brad Smart, Director of Pinecam discuss the benefits of Accountants producing newsletters for their clients/prospects.
Peter Towers, Managing Director of ESS BIZTOOLS together with Mark Holton, Director of SmithInk discuss the Australian Accounting Industry and Overseas Accounting Industries.
Peter Towers, Managing Director of ESS BIZTOOS discusses “Combating Worsening Talent Shortage!”
“Accountants are facing problems” – Accounting Market Pulse.
Does your accounting firm have a strategy to attract and retain staff?
Andrew Geddes – Australian Accountancy Guru discussed this problem with me in November 2021.
“Partners of accountancy firms are saying there are not enough young accountants, but no, there are enough of them, they’ve chosen not to work in the profession because they have been asked to do compliance work only and to obtain 80% productivity which has caused people to say – I’m not sure I want to work in that environment”
“We’ve got to teach them, and the partners and directors have got to be available.”
Firms should ensure that younger accountants work closely with partners so that they can improve their knowledge of business and develop their skills.
“You have to involve young people with clients and projects”
“You’ve got start it now – this afternoon because your greatest challenge at the moment is getting good people to work with!”
Peter Towers, Managing Director, ESS BIZTOOLS had a podcast discussion with Paul Barnaby Managing Director, Beyond Accounting Technologies and PlanGuru’s Regional Integration Consultant – Asia/Pacific to discuss the findings outlined in the “Accounting Market Pulse” and to outline how the Academy of CPAs (Certified Predictive Accountants) can assist accountants to deliver a broad range of value-added services that will assist clients to operate value-added businesses and at the same time assist in overcoming the major problem confronting the accounting industry at this time – “worsening talent shortage” because your team will have interesting and challenging work to perform.
Are your clients carrying out research and development activities behind your back?
You might be surprised to discover that many SMEs conduct their research and development activities in total secrecy.
That’s because they’ve been scared off by blogs and articles warning about confidentiality and protecting intellectual property.
In some cases, clients can take this a bit too far, and they may not even tell you, their accountant, what they’re up to.
This is crazy stuff! These ‘sneaky’ clients may be missing out on some serious government incentives.
By keeping you in the dark, these SME clients won’t be getting the proper professional advice they need to know on how their operations should be structured to take full advantage of their R&D activities.
Research and Development is part of the Income Tax Act and your eligible clients should be claiming their Research and Development Offset.
Let’s start today with a snap quiz! Did you read last May’s Accounting Market Pulse report and seriously think “maybe our accounting firm should be offering those Business Advisory Services to our clients?”. Now, eleven months later, have you done anything about it? Perhaps, you may still be thinking about how you’ll introduce those Business Advisory Services to your accounting team so they’ll be up to speed when you finally start talking to your clients.
The “SME Needs Analysis” is the most important component of our new ESS BIZTOOLS package offering. This module has been based on the original research that was produced by Andrew Geddes – the Joint Founder of the Financial Management Research Centre at the University of New England. Andrew is well known as an Accountancy Industry Consultant and for ten years was the Chair of Green Cross Ltd a top 200 ASX company. Andrew consulted to Green Cross for thirty-five years from its beginning as a “one vet one nurse veterinary surgery in Townsville”.
Peter Towers, Managing Director of ESS BIZTOOLS discusses how Accountants, Business Advisors and Bookkeepers can offer Business Advisory Services to their SMEs clients without being committed to a contract.
Our guest is Andrew Geddes, the well-known Accounting Industry Consultant who was the Chairman of Green Cross Ltd, a company which grew from a one veterinary surgery practice in Townsville to a Top 200 ASX company. Andrew is joining Peter Towers to discuss the challenges confronting accountants in 2022.
Did you know there are many grants and incentives to help fund early stage innovation companies? And small and medium businesses can access them - they are not just for the large companies.
Peter Towers from ESS BizTools explains what opportunities are available around research and development.
Find out about the application process and steps you will need to take to gain early stage innovation company status.
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 questions for each of the key business areas:
- What are we doing well?
- What are we doing not so well...
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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 produced daily.
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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?...
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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 time....
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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 the effect will be on the business’ bank position and/or level of loans.
If there is a shortfall in the cash available for the business, decisions can be made before any commitments have been made as to whether the business should be seeking to borrow new funds or be exploring the opportunity of raising capital by utilising Crowd Sourced Funding Equity Raising or Section 708 of the Corporations Act?.....
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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 manufacturing/purchase estimates and the unit sales can be based on estimates from sales people.....
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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 Reports, Budgets and Comparisons to Budgets are produced for the leadership team to be better informed of the individual “department’s” performance...
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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?.....
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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 training and motivation.
- Create a truly differentiated strategy - relating to customers, suppliers, supply chains, communications....
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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 to those various products to determine...
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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 clearly identify strategies for this new cal....
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rowd 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 (previously limited to 50 non-employees shareholders).
- CSF offers can be advertised publicly, whereas other public offers have heavy restrictions on permissible advertising, or can’t be advertised at all.
- Shares issued directly to shareholders – nominees/trust structure is not permitted.
- Crowd Sourced Funding Company is not an investment company – can’t raise funds to invest in other entities or schemes.
In ESS BIZTOOLS’ Business Advisory Services Update Webinar/Conversation - Wednesday 9th December at 11.00am AEDT (10.00am AEST) Peter Towers will discuss with...
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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) Mark Holton, Director of Smithink will...
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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 to $150,000 in grants to assist exporters and suppliers of services to overseas’ visitors under the Export Market Development Grant....
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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 will assist the team member, assigned to this task, to perform his/her duties...
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Matt Vitale, Co-Founder of Birchal, Crowd Sourced Funding Intermediary, indicated this week that during 2020 his company had assisted more companies than it had in 2019.
Birchal expects to assist even more companies to raise capital during 2021.
To be eligible, a company needs consolidated turnover of less than $25 million, gross assets under $25 million and not listed on a stock exchange....
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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?....
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Section 708 of the Corporations Act enables a private company to raise up to $2M in a 12 month period from a maximum of 20 retail investors.
“Retail Investors” are defined as people who are not “Sophisticated Investors”.
“Sophisticated Investors” are people certified by an accountant as having a net wealth of $2.5M or, for the last 2 years, had a gross income for in excess of $250,000.
There is a probation on advertising that the company is seeking to raise capital....
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If you haven’t already planned your strategies for 2021, now is a great time to be holding some “think tank” meetings to identify key strategies that your accountancy firm should be implementing during the next 12 months
Following on from the Com Bank “Accounting Market Pulse Report” which identified that Business Advisory Services would be the most in demand service supplied by accountants in the next 6 to 12 months, the recent Accounting Business Expo enabled a significant number of presenters to make presentations relating to the subject headings.....
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There are 3 distinct capital raising opportunities for SMEs, as an alternative to borrowing money from a bank.
The capital raising requires companies to issue shares to new shareholders and, in so doing, the company and its directors avoid having to offer security, sign personal guarantee documents and make monthly repayments....
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The consequences of not registering on the Personal Property Securities Register can be very expensive.
Risk management is very important for every business and one of the major risk categories that accountants can assist clients on is an awareness of the Personal Property Securities Register.
Every business should develop a policy of registering customers on the Register so that the business..
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Businesses that provide enabling or supporting technologies, imports or services to drive business growth or improve business competitiveness in one or more of the government’s targeted sectors can also access the grants of up to $20,000, on a 50% funding basis, to undertake virtually any activity which will contribute to an improvement in the company’s performance. The types of businesses which meet the eligibility requirements include:
- Freight and Logistics
- Infrastructure Related Construction and Services...
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The Australian government, via the Entrepreneurs’ Program, operates the Business Growth Grant Program which is targeted at companies which operate in the following targeted segments:
- Advanced Manufacturing
- Food and Agribusiness
- Medical Technologies and Pharmaceuticals
- Mining Equipment, Technology and Services
- Oil, Gas and Energy Resources
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In my discussions with accountants it is obvious that, if an accountancy firm decides that it’s going to offer Business Advisory Services, there needs to be a marketing campaign to alert clients & prospects that the firm is offering a broader range of services.
If there is no marketing campaign, how is the target audience going to know that the firm is now able to assist with the verification of charge out rates, assist in a Crowd Sourced Funding Equity Raising campaign, offer a Virtual Chief Financial Officer Service etc?
Marketing for an accountancy firm can take different forms:...
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At the Accounting Business Expo held on 16/17 November the number of presentations relating to Business Advisory Services was very high – probably the highest ever for this type of forum.
A wide variety of speakers spoke on numerous components of the services that accountants could deliver under the banner “Business Advisory Services” and “Chief Financial Officer Services”.
This response adds significant support to the research undertaken by the Commonwealth Bank “Accounting Market Pulse Report” for the accountancy industry which identified that “the supply of....
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Accountants can assist professional practices by implementing a strategy for the setting of charge out rates to ensure that the key components that contribute to a professional practice generating a profit have been considered.
The key component for the calculation of charge out rates include:
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In the first presentation of our new Business Advisory Services Update weekly webinar presentations I’ll be joined by Amanda Gascoigne, Chartered Accountant, Coach and Mentor, Amanda Gascoigne Consulting and we’ll discuss the issues of ‘resetting your practice’, particularly as it relates to servicing tradies’ businesses.
How many tradie business clients does your accountancy firm have?....
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This is an overview of my presentation to the “Accountancy Business Expo” this afternoon at 1.30pm AEDT (12.30pm AEST). Register for your FREE ticket to the Accounting Business Expo - https://secure.terrapinn.com/V5/step1.aspx?E=10138&p=1&_ga=2.139956148.680047742.1604884253-2119313395.1604884253
The key items that I’ve included in this presentation cover the major issues that, I believe, are important for accountants who are...
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A common question that accountants hear from retailers is “Why, if we are selling so much product, aren’t we making a profit?”
In my presentation to the Accounting Business Expo on Tuesday 17th November at 1.30pm AEDT (12.30pm AEST) I’ll briefly discuss this very important question. Register for your FREE ticket to the Acco....
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Accountancy firms have experienced significant increases in work activity directly as a result of assistance being given to business clients relative to surviving the COVID-19 crisis.
In many respects this is the first prolonged experience that many accountancy firms have had with delivering a broader range of professional services (commonly known as 'Business Advisory Services') to assist clients.
The real impact from COVID-19 for accountants has been:
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Many accountants have large numbers of tradie businesses as clients.
In my presentation to the Accounting Business Expo on Tuesday 17th November at 1.30pm AEDT (12.30pm AEST) I’ll discuss the proactive role that an accountant can play to assist individual tradie businesses set realistic targets and then assist those clients to achieve those targets by ongoing support during the year.
Register for your FREE ticket to the Accounting Business Expo -
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There is an expectation that businesses are going to find tougher conditions for financing their businesses.
A key component of my presentation to the Accounting Business Expo on Tuesday 17th November at 1.30pm AEDT (12.30pm AEST) will relate to activities that accountants can contribute to assist SMEs with their financing arrangements whether it is borrowing money to an understanding of the capital raising opportunities that are now available for small private companies.
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The Accountants Business Expo presentation that I’m making is on Tuesday 17 November is at 1.30pm AEDT (12.30pm AEST). Register for your FREE ticket - https://secure.terrapinn.com/V5/step1.aspx?E=10138&p=1&_ga=2.139956148.680047742.1604884253-2119313395.1604884253
There is now SME market awareness that accountants can provide services beyond taxation, including Chief Financial Officer Services.
SME managers encounter numerous problems every day which, in a larger business, the CEO would be able to request the business’ in-house Chief Financial Officer give input and advice. Most SMEs do not have the luxury of having a qualified accountants on....
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“Delivering Business Advisory Services to Add Value” is the presentation that I’m making at the virtual Accounting Business Expo on 16/17 November.
The Commonwealth Bank’s Market Pulse Report has identified that ‘Business Advisory Services’ is the practice area expected to be most in demand in the next 6 to 12 months.
This was the determination of a group of accountants, from all types of accounting firms, who were surveyed for the bank’s report. The challenge for all accountants is to now ensure that you do not miss out having the ‘right seat on the bus’ as the ‘Business Advisory Services’ journey commences in Australia.
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Accountants can contribute to their SME clients’ leadership skills by incorporating personal leadership capacity and development within the Chief Financial Officer services being offered to clients. In this way the leader will understand how they can influence followers and be able to communicate to the team the purpose of the organisation, whilst showing strong personal capacity.
The leader needs to communicate that the business must have a strong awareness of the contribution made by customers.
Team members’ attitudes are a prime contributor to bottom-line profitability of businesses and leaders need to ensure that adequate staff training is being delivered to the team for them to have this awareness.
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The Export Market Development Grant provides financial incentives based on expenditure paid to promote exports of products and services, including inbound tourism and the export of intellectual property and know-how outside of Australia.
Total claims are calculated at 50% of eligible expenditure capped at a maximum of $150,000 per exporter.
There eligible expenditure categories include:
- Overseas representation
- Marketing consultants
- Marketing visits (not including travel to North Korea or New Zealand)
- Free samples
- Trade fairs and promotion is events
- Promotional, literature and advertising
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Business Advisory Services provides a great opportunity for accountants to supply a broader range of value adding services to their clients. Accountants in public practice should embrace this opportunity to offer a range of commercial services to your clients.
The key items for consideration include:
- Preparing accounts on a departmentalised basis.
- KPIs on a departmentalised basis.
- Business review reports for the leaders of individual departments.
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There are still plenty of challenges confronting SMEs of which accountants need to be aware - assisting clients to develop strategies to overcome challenges is part of the broader range of services incorporated within “Business Advisory Services”.
Some experts are predicting that debtors' days outstanding could blow out considerably over the next few months. This is a very dangerous situation for SMEs. You can assist by advising clients about the benefits of ensuring that new customers are well aware of your client’s trading terms and that your client's team is implementing their debtors' management system diligently from the first transaction with a new client through to the prompt dispatch of invoices and statements at the end of the month.
Knowing their “Debtors' Days Outstanding” is a crucial Key Performance Indicator for every business.
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Accountants, many companies will potentially need your assistance on this process.
For young companies which have not been active for very long there is an alternative test to the Gateway Test that we discussed in a post yesterday.
The company must be able to supply supporting documentation to answer the following questions:
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There is an expectation that many businesses will have spent some of the lockdown time caused by COVID-19 to undertake research and development activities and some of those businesses will be giving consideration as to whether they can raise funding to finance the commercialisation of their research and development.
Some young companies will pass the initial test that we summarised in yesterday’s post and they are then required to pass either the Gateway Test or the Principles Test.
The Gateway Test requires 100 points to be earned by the company in response to a series of questions:
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Early Stage Innovation Company status is not well-known and this has probably meant that many directors of young companies were unaware of the special category of companies that the government established to encourage investors to consider investment in companies which have developed new products, processes, services, management or marketing methodologies.
To be eligible the company must be under 3 years of age, have turnover of less than $200,000 and expenditure of less than $1M, in the previous 12 months.
To be eligible a company is required to pass 1 of 2 tests.
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Accountants who wish to be able to advise clients on Crowd Sourced Funding need to have a clear understanding of the duties, responsibilities and powers of Crowd Sourced Funding Intermediaries.
ASIC has appointed the Crowd Sourced Funding Intermediaries. The Intermediary’s role is to act as the “Gatekeeper for ASIC" to ensure that the Corporations Act has been complied with by the company in the capital raising process.
The CSF Intermediary is also a “promoter” of the opportunities that are available to investors to invest in a company that the Intermediary has reviewed and agreed to upload to their website so that the public can visit the website to view the company’s Crowd Sourced Funding Offer Document and other material supplied by the company in support of their capital raising endeavours.
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Crowd Sourced Funding presents accountants with an opportunity to be able to undertake a significant range of professional services to assist clients to be able to raise capital direct from the public.
The process includes:
- Briefing your client on the Crowd Sourced Funding journey from the initial discussion through to receiving a list of the new shareholders from the Intermediary.
- Mentoring your client on the Crowd Sourced Funding Intermediary’s role and responsibilities.
- Preparation of – Business Plan, Budgets, Cashflow Forecasts.
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Many directors of private companies will be considering ways that they can “scale up” their businesses. When people undertake these reviews many of them will come to the conclusion that whilst they have a very good business they could encounter difficulties in being able to borrow money from banks and they may speak to you on alternative fund raising opportunities.
One of these opportunities is “Crowd Sourced Funding Equity Raising".
There is a process to go through which, if your clients are serious about gaining an understanding of how Crowd Sourced Funding Equity Raising, operates they will be keen for you to give them some guidance as to how this new type of funding for SMEs operates.
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EMDG applications for 2019/20 financial year must be lodged with Austrade by 30.11.20.
The EMDG aims to assist the development of exports by Australian firms. Eligibility applies to any Australian business entity type. To be eligible to make a claim, businesses must have spent at least $15,000 on eligible export marketing activities in 19/20.
If this is the first year a business has submitted an application, expenditure incurred in the previous financial year (2018/19) can be claimed together with the expenditure in 2019/20 to enable the applicant to exceed the minimum expenditure requirement of $15,000.
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With the general business uncertainty accountants are going to be in ongoing demand from their clients to assist them to survive.
There are many key aspects of a business to be considered including:
- identification of government grants for your clients;
- determining how the business is controlling its day-to-day activities relative to productivity;
- mark-ups;
- charge out rates;
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n the recent budget, the Australian government made changes to the research and development system applicable for large companies (turnovers over $20M). In so doing, the government repealed its proposed legislation, which has been stalled in the Senate.
Companies with annual turnovers of $20M or more will still face a tiered intensity approach that will now see two tier levels instead of three.
The marginal research & development premium will be 8.5% above the company’s tax rate for R & D expenditure between 0% and 2% R & D intensity (R & D % of turnover).
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In the Federal Budget, released last week, the government has made significant changes to the Research & Development Tax Incentive rules, thus reversing many of the changes that the government had proposed in its previous budget, which have been stalled in the Senate.
The government has announced a new commitment of up to $2B to Research & Development Tax Incentive.
The changes include the scrapping of the $4M refund limit for companies with annual turnovers of less than $20M.
The refundable R & D Tax Offset for small companies (turnover under $20M annually) will be set at 18.5% above the claimant's company tax rate, up from the 13.5% proposed in the Bill that was stalled in the Senate.
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Breakeven Analysis is very important for your business clients to understand, because this is the point where the business knows whether it has made a profit or a loss. It's the starting point for the generation of profits within a business.
I think it's important that, irrespective of whatever role you're playing with your accountants, preparing accounts and income tax returns or offering a Business Advisory function to your clients, you should show your business clients how they should go about calculating their breakeven sales so that they continue reviewing their targeted sales throughout the year, so the calculation that you give them, which is obviously based on the business' Overhead Costs, including Labour, Labour On Costs and the realistic Gross Profit Percentage being generated by the business, is very important for them to know the breakeven figures on a daily, weekly, or monthly basis.
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Accountancy firms have experienced significant increases in work activity directly as a result of assistance being given to business clients relative to surviving the COVID-19 crisis.
In many respects this is the first prolonged experience that many accountancy firms have had with delivering a broader range of professional services (commonly known as 'Business Advisory Services') to assist clients.
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