Small Business


Do You Need A Self Managed Super Fund?

Top 4 Advantages To Having A Self Managed Super Fund!

Do You Need A Self Managed Super Fund?

A Self-Managed Superfund (SMSF) has been one of the most talked about items in discussions
surrounding tax, due to the numerous tax advantages it brings, both from the tax and investment point
of view.

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3 Ways For Accountants To Value Add

3 Ways Accountants Can Value Add & Create A Competitive Advantage!

The role of the accountant has evolved and value adding is crucial. What was once the ‘traditional accountant’ has now become the ‘outsourced CFO’ as businesses now turn to their accountant for strategic advice. Below outline three basic methods accountants can value add and ultimately create a competitive advantage.

1. Working Capital Management

Managing cash and the levers that optimise an organisation’s liquidity is critical to its success. The administration of these components is known as working capital management. A business without sufficient cash to be able to pay their debts will fail. Conversely a business with too much cash available will endure an opportunity cost from investments not taken up.

Finding the right balance is key. One measurement of working capital is Inventory plus Accounts Receivables less Accounts Payables. To decrease working capital, an organisation can reduce the amount of inventory it holds, reduce debtor levels, or increase trade creditor levels – ultimately increasing cash flow.

Accountants play a critical role in being able to advise what the optimal level should be and provide methods of achieving this, examples include:

  • Reorder point model – i.e. when to order inventory
  • Obtaining credit facilities – e.g. From the ATO
  • Providing key financial ratios with comparisons to industry averages – e.g. debtor days

2. Performance Reporting

Without measures to assess organisational goals, businesses will be unaware if targets are met, they will remain static, and will not find areas of improvement. Accountants can provide these measures through various means – for example:

  • Dashboard reporting – providing a visual snapshot of financial performance and KPIs
  • Financial ratios – e.g. return on investment
  • Non-financial measures – e.g. staff turnover

One valuable measurement tool is the balanced scorecard (BSC). The BSC provides a framework for developing financial and non-financial measures to monitor the achievement of an organisation’s strategic objectives.

It takes a wholistic approach and breaks down the organisation into four perspectives: financial, customer, internal process, and learning and growth.

Goals are determined for each quadrant with accompanying KPI’s used to measure performance.

3. Product Costing

Traditional costing methods allocate overhead costs to products or services based on a single organisation-wide measure.

This can spell a recipe for disaster, for example:

  • Products can be determined to cost less than they should – therefore a business might persist with the product when in fact it is not profitable
  • Products can be determined to cost more than they should – therefore a business might cease production/sales of the product when in fact it is profitable

Fortunately, todays accountant has an accurate solution – Activity-based Costing (ABC). ABC allocates overhead costs based on the amount of activity required to produce the product or service. Through the use of such techniques accountants can better position their clients to maximise wealth.

Businesses can now assess their core competencies and create competitive advantages. These value adding techniques are only a few of many available, and are necessities to obtaining success in a highly competitive world.

By Adam Jacobson

Contacts us for a complimentary review of your current business structure


Check The Temperature Of Your Business Accounts!

Call The Dr Now! 7 Crucial Steps To Your Business Accounts Health Check!

Are you feeling unwell? (cough, cough) How do you know when to visit the doctor? How do you know when your business accounts aren’t feeling well?

Then it is time to discuss the 7 crucial processes to review your business accounts for any hidden issues.

1. Bank Accounts

It is important to reconcile your business bank accounts regularly. Reconciling your business accounts regularly avoids any documents being misplaced before reconciling and it also detects potentially fraudulent entries early. Whilst your bank account now reconciles to your statement ensuring you review the un-presented items on your bank reconciliation report and you can also investigate any long outstanding transactions or unusual items that you know have occurred. Keeping in mind that these transactions may be duplicates.

2. Creditors

Always remember to review the creditor’s detailed report and if an invoice appears that you’ve already paid, then it is possible that the payment may have been allocated incorrectly and require appropriate action or the invoice could possibly be a duplicate.

Also, ensure that you have not forgotten to pay a supplier. Whilst these things can happen and a supplier might not have contacted you for the payment it doesn’t mean they’re not grumbling about it.

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How A Virtual CFO Can Help With Business Decisions

How To Have A Virtual CFO Help Guide Your Business Decisions!

The Role Of A CFO

Most larger businesses have an internal Chief Financial Officer (CFO) or a Financial Controller. Clearly, larger businesses can afford an in-house CFO, but it goes beyond an affordability issue. Large, successful businesses also understand how crucial the CFO role is to their business performance.

What Is The Role Of The CFO In A Business:

  • Keeps a close eye on the numbers and trends,
  • Alerts management when preventative actions are required,
  • Helps management create sound forecasts and plans,
  • Ensures the cash inflows and outflows are managed well so the business never runs out of cash or needs to borrow in haste,
  • Reports on revenues achieved compared with targets,
  • Gives solid information on a range of Key Performance Indicators (KPIs) to the business decision makers, and also
  • Helps management with decision making.

This is management input that all businesses require regardless of their size.

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What Is The Real Value Of Your Business

How Much Is Your Business Really Worth?

Most business owners invest a lot of time, effort and money into their commercial babies. Hoping that years, and in some cases decades, of hard work will mean that one day they will be able to sell and enjoy a comfortable retirement.

Unfortunately, there is a common misconception among business owners about the dollar value of their business. This stems from the unquantifiable emotional investment that is rarely reflected in the ventures dollar value.

Read More, for 3 main drivers and other factors that impact the value of an enterprise!

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Save Time And Move To The Cloud Now

Move To The Cloud It’s The Right Choice!

First of all, Aston Martin are designing a personal submarine, Elon Musk is touting the use of the BFR to reduce intercontinental flights to 30 minutes and we live in a world where you turn on your home lights and heating with the use of your smartphone! So moving your business to the cloud is absolutely the right choice!

We live in an ever-changing world of technology and it seems like we are always eager to be hooked on the next new gadget and smart device apps!

At AS Partners we have noticed that technology has advanced further in the last five years, then in the twenty years before that and furthermore, we have advised and supported numerous businesses when it comes to moving into the cloud. As a result, these business clients with annual revenues of up to $15M have experienced strategic advantages! Read on for the top 4 reasons why you should move your business to the cloud too!

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