The past has no future!

Accounting News

The past has no future!

By Peter Towers – ESS BIZTOOLS Pty Ltd

Do you think of yourself as an innovative accountant?

Are you ready to step up your game and offer your clients a broader range of professional services?

If you are, then let us dive into the world of virtual CFO services – an exciting way to provide real accounting support throughout the year and not just at the end of the financial year.

Thomson Reuters' recent white paper, Leading Australian SMEs in 2023's Changing Economy, suggests that "The Past Has No Future". This powerful statement should become the new mantra for SMEs, accountants, and advisors alike.

Let us focus on strategies that will drive growth in revenue and profit for SMEs in 2023 and beyond.

To help your SME clients overcome the challenges they face, such as tight cash flow, increasing costs, and the need for growth, as their accountants you should:

• Encourage exploration of new markets for fresh customers and revenue streams.
• Advocate for regular business planning and strategy development to identify growth opportunities and set clear goals.
• Suggest alternative sources of funding, like grants, loans, or investments.
• Promote government support programs and networking with mentors; and
• Support new product or service development and data analytics for better decision-making.

But where do you start?

Introducing a "52-Week Business Enhancement System" for your clients will help you regularly review these aspects. ESS BIZTOOLS is developing product packages to assist accountants in delivering virtual CFO services with a comprehensive overview of the business all year round.

Begin by understanding the client's leadership team and their vision for the business. Then review every aspect of the company's operations, from raw materials and inventory to marketing, sales, and customer relations. You will also need to ensure internal control processes are working effectively, staff training is delivered, and energy requirements are met.

As a virtual CFO, you can help your clients improve their business plan, manage risks, and optimise their finances. With ESS BIZTOOLS ' comprehensive product package, you will have all the tools you need to conduct a due diligence review and facilitate business plan preparation.

Now that you have set the stage for the "52-Week Business Enhancement System," you are ready to dive into predictive accounting reports. Ensure the chart of accounts is up-to-date and covers key drivers such as inventory, debtors, creditors, and payroll. Prepare budgets and cash flow forecasts, and consider capital-raising options such as Crowd Sourced Funding Equity Raising or Venture Capital.

With your support, SMEs can thrive in 2023 and beyond. Are you up for the challenge of providing the services they need to succeed?

Stay tuned for our next edition of Accountants Minute, where we will discuss daily, weekly, and monthly business enhancement systems to keep your clients informed and ready to adapt to changing market conditions.

Ready to take the next step and revolutionize your accounting services? Explore our virtual CFO product packages at ESS BIZTOOLS and start transforming your clients' businesses today!

ESS BIZTOOLS Easter Special

For a limited time, ESS BIZTOOLS is offering a massive discount on the Starter Package and Advanced Package.

Starter Package

Normally at $2,100 (including GST), you can now subscribe to this package for $1,899 (including GST). That’s a savings of $201!

What’s included?

• 12 months subscription
• 24/7 access to business development material
• Publishing rights
• One (1) holiday accommodation voucher (while vouchers last)

Advanced Package

Normally at $6,500 (including GST), you can now subscribe to this package for $2,968.90 (including GST). That’s a savings of $3,531.10!

What’s included?

• 12 months subscription
• 24/7 access to business development material
• Publishing rights
• Subscription to ESS BIZGRANTS
• Two (2) holiday accommodation vouchers (while vouchers last)

This special offer is available until Tuesday 11 April 2023.

Click here to learn more and get started.

ACCOUNTANTS DAILY ARTICLES

Ageing Aussie business owners ‘put the brakes on innovation’

With more entrepreneurs over 50 and fewer under 40, the rest of the Asia-Pacific is winning the race to digitise, CPA Australia survey finds.

Australia’s ageing small business owners are holding back innovation and digitisation, according to the latest CPA Asia-Pacific Small Business Survey.

It found Australia had the most company directors over 50 and came ninth (out of 11) for number of business leaders under 40.

CPA Australia senior manager of business and investment policy Gavan Ord said Australia’s youthful entrepreneurs had gone missing in action.

“Where have all the young business owners gone? They’re generation MIA when it comes to small businesses,” said Mr Ord.

CLICK HERE to read more.

How builders buckle under the weight of work in progress

Proper accounting procedures can help measure the true cost of completing a job.

Builders play in one of the most volatile industry sectors in the country. The league table for business failure places builders in the top three. Always. Often they take number one position. This has been the case for the 30-plus years that I have been tracking business failure statistics. But why are builders perennial contenders for the title of businesses that fail the most?

The answer is that there are many factors. One of these is the management of work in progress, projects under construction. When I work with builders, I often see the analysis or interrogation of work in progress being left for formal reporting processes, often performed annually and, in my experience, a best guess between builder and accountant.

For residential builders there is added pressure with this annual assessment as work in progress, together with the resulting gross profit margins, influence insurers that provide home warranty insurance (HOW).

HOW covers building work which is incomplete or defective and the builder has either disappeared, become insolvent during construction, or has failed to respond to a rectification order. Without HOW a residential builder cannot operate.

CLICK HERE to read more.

ATO warns businesses to check FBT claims as deadline nears

Electric vehicles become exempt from the levy for the first time and Mazars expects an influx of salary packaging requests.

The ATO has advised businesses and their tax practitioners that as the FBT year draws to a close they should already be working on what items they can claim in their lodgement.

The tax office said for businesses not lodging through a tax practitioner the lodgement date would be 22 May, while for those lodging electronically via a tax practitioner the due date would be 26 June.

The ATO also warned businesses that if it was the first time they would be lodging with a tax practitioner to contact them before 21 May as they would need to add them to their FBT client list by then to ensure they were eligible for the later June lodgement and payment date.

The biggest change to FBT within the 2023 FBT year - which spans from 1 April 2022 to 31 March 2023 - was the introduction of the electric car exemption.

CLICK HERE to read more.

Small practices that sell a vision can beat Goliaths to staff

Firms have to market themselves as forward-thinking because young candidates care about more than just money.

Small practices that market themselves to potential employees can beat the big firms because salary alone will fail to attract and retain, says the director of Professional Services BD, Alistair Marshall.

Mr Marshall said today’s digitally empowered workers would do their research before deciding to attend an interview and that was where a firm could stand out.

“A change in attitude can make a huge difference regardless of the size of the practice,” he said.

“The small firms always perceive that they can’t compete with the big boys and I’m here to deliver the message positively that they can, but they need to change the way they think.”

CLICK HERE to read more.

‘Marked increase’ in directors seeking help with DPNs

Worrells says enquiries are up about 30 per cent and many directors are unaware of their personal liability.

More directors on the hook for company debt are reaching out for help with a “marked increase” in inquiries, says a principal of insolvency specialist Worrells.

Perth-based Mervyn Kitay said many directors knew their company had outstanding debts but were unaware of their personal liability until a director penalty notice (DPN) arrived from the ATO.

“We are now seeing a marked increase in inquiries from directors who are actually getting DPNs,” Mr Kitay said. “We’ve probably seen about a 30 per cent uplift in inquiries directly as a consequence of DPNs.”

“We’re seeing directors now becoming aware of the fact that they will be personally liable for the debts unless they put company into administration, liquidation or actually pay the debt.”

CLICK HERE to read more.

Grants Update

There are number of grants for which your SME clients might be eligible.

Want to know what they are? Click here for a list of current grants, prepared by ESS BIZTOOLS.

ESS BIZTOOLS Podcast

Our podcast channels are available to access on different platforms. Click on your preferred platform to access.

Business Advisory Services Update Podcast

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 the following platforms:

Accountants Minute Podcast

This podcast discusses Issue 347 of Accountants Minute, which explains why accountants and bookkeepers should diversify their services by providing R&D assistance to their SME clients.

You can also access our podcast on the following platforms:

ESS BIZTOOLS Webinars

Upcoming Webinars – Click to Register

Delivering Virtual CFO Services – Wednesday 29 March 2023 at 11am AEST (12pm AEDT)

Upskilling your TEAM – Thursday 13 April 2023 at 11am AEST

Implementing 1 Inch Wide/1 Mile Deep Knowledge – Thursday 20 April 2023 at 12pm AEST

52 Week Business Enhancement System – Thursday 27 April 2023 at 12pm AEST

Previous Webinars – Click to Watch

Want to know more?

Visit www.essbiztools.com.au. You are also welcome to visit www.essbizgrants.com.au, a website that can assist in the identification of government grant(s) suitable for your clients.

If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 1800 232 088 and we will arrange a complimentary 15-minute Zoom meeting to discuss your firm’s position and to give you our advice.

We believe that this is the blueprint for the delivery of an enhanced range of services by Australian accounting firms to assist SME businesses to add value to their businesses and to assist accountants not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.

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