Preparation is important
The ‘Tradie Charge Out Rate Calculator’ available within ESS BIZTOOLS addresses a common issue faced by small and medium-sized accountancy firms working with Tradie business operators. The challenge revolves around determining appropriate charge-out rates for team members based on factors like labour overhead costs, salaries, anticipated client-charging time, external purchases, mark-ups, and overhead expenses. The goal is to ensure that these elements, when integrated into the budget, lead to the targeted profit. This segment of ‘Delivering Advisory Services’ serves as a guide for accountants in navigating these complex calculations.
The ‘SME Needs Analysis’ is recommended as a conversation starter for accountants and bookkeepers aiming to discuss advisory services with clients. This tool helps evaluate business performance, debtor days outstanding, cash flow, funding needs, and other business enhancement matters. It encourages accountants to move beyond the perception that they only deal with tax returns, fostering discussions on broader aspects of business improvement.
The article also emphasizes the challenges facing SMEs in 2024, such as high inflation and interest rates, natural disasters, and the introduction of the ‘Industry Growth Program’ by the government. To address these issues, the importance of delivering advisory services is highlighted. Accountants and Bookkeepers are encouraged to start discussions with key clients, using tools like the SME Needs Analysis, to understand and address specific concerns, from profit/loss and cash flow difficulties to business planning and financial performance benchmarking. Our commitment to Accounting and Bookkeeping firms is that you can leverage ESS BIZTOOLS’ product packages to efficiently deliver comprehensive advisory services.
Section 708 – 40 years old but still vital for SMES!
We want to dispel the myth that small companies need a ‘disclosure document’ to raise capital, emphasizing the special exemption provided by Section 708 of the Corporations Act for ‘Small Scale Offerings’. Under the ’20/12 Rule’, companies can issue securities up to 20 times in 12 months, raising a maximum of $2 million from a maximum of 20 people. These offerings must be ‘personal,’ avoiding marketing or advertising, and are often used by small companies in their initial capital-raising journey, crucial for Research & Development funding and prototype commercialisation.
To facilitate this process, ESS BIZTOOLS offers a ‘Section 708 Capital Raising Product Package’, aiding accountants and bookkeepers in providing advisory services to SME clients. The package includes recommended documentation for investors, such as a Business Plan, Predictive Accounting Reports, company valuation, and statements confirming compliance with regulations.
We also debunk another myth, asserting that annual accounts and tax returns are sufficient for SMEs. This underscores the need for more comprehensive financial information, citing MYOB’s CEO, Paul Robson, who highlights the challenges faced by SMEs in areas like rising input costs, interest rates, and general cash flow management. Robson advocates for more than just annual financial statements, urging businesses to focus on business metrics, budgets, and cash flow forecasts. The article stresses that SMEs require ongoing assistance, including monthly financial accounts, business metrics, cash flow advice, and costing advice to navigate challenges and improve fiscal management, ultimately preventing a high failure rate among small businesses.
Delivering services that SMEs need
For the month of April 20124 ESS BIZTOOLS is presenting a series of complimentary webinars for Accountants and Bookkeepers.
These webinar will provide an overview of products that ESS BIZTOOLS can provide to Accountants and Bookkeepers to assist them in delivering services that SMEs need. Our webinar program is detailed below – please select a convenient time to attend a webinar!
Level 1 – Advisory Intro
Friday, 5 April 2024 at 11.00am AEST
Wednesday, 10 April 2024 at 2.00pm AEST
Wednesday, 24 April 2024 at 4.00pm AEST
Wednesday, 1 May 2024 at 5.00pm AEST
Level 2 – Starter Package
Wednesday, 3 April 2024 at 1.30pm AEST
Thursday, 11 April 2024 at 12.00pm AEST
Tuesday, 23 April 2024 at 5.00pm AEST
Wednesday, 1 May 2024 at 5.00pm AEST
Level 3 – Advanced Package
Tuesday, 9 April 2024 at 12.00pm AEST
Monday, 15 April 2024 at 5.00pm AEST
Friday, 19 April 20124 at 12.00pm AEST
Level 4 – Financial Forecasting Package
Wednesday, 17 April 2024 at 12.00pm AEST
Monday, 22 April 2024 at 1.30pm AEST
Tuesday, 30 April 2024 at 5.00pm AEST
Peter Towers – Managing Director, ESS BIZTOOLS Pty Ltd
Telephone: 07 4724 1118
Email: peter@essbiztools.com.au
Website: www.essbiztools.com.au
- Preparing to deliver advisory services - 2 April 2024
- Two Research and Development Myths Debunked! - 1 February 2024
- The Giant Awakening - 21 January 2024
