There are many challenges facing accountants and, indeed, the whole business community. These could be summarised as:
- The economy – interest rates are not at the current level to assist borrowers. They’re indicative of an economy that has significant problems.
- There are depressed business situations in some areas around Australia. This leads to businesses closing or making significant staff retrenchments.
- “Digital disruption” keeps on affecting businesses in all sorts of ways.
- Standard Business Reporting (SBR) – the Australian Taxation Office intends to implement this strategy from 1 July this year which, the ATO believes, will have a significant “red tape reduction” effect on accountants, even though the government will maintain that it’s good for business.
In these circumstances, accountants have a choice. You can either meet the challenges and provide the services the marketplace wants, or retreat and hope things will improve in the future.
I believe there are many positive outcomes accountants can achieve by being proactive at this time.
- The Australian Taxation Office’ Second Commissioner has identified that there’s a real role for accountants in offering debtors’ management advice and cashflow management advice to small/medium enterprises. Debtors’ days outstanding is currently 51.6 days – three weeks longer than the standard business trading period of 30 days.
- The Personal Property Securities Act (PPSA) and the Personal Property Securities Register (PPSR) is a quagmire that can cause immense problems for businesses that are unaware of the requirements to register assets and other “personal property” on the register to gain some protection.
- Sale of businesses – there are thousands of businesses that baby boomers would like to sell. Many of these owners need assistance.
- Shrinkage/waste management reviews – potentially millions of dollars could be saved by businesses. Many small/medium enterprises need assistance in this area.
- Succession planning – every business should be facing up to this very important phase in a business. Are you offering succession planning advice?
- For more ideas on services that can be offered as part of Business Advisory Services in 2015, please go to www.essbiztools.com.au.
ESS BIZTOOLS PTY LTD