Australia’s 2.2 million businesses produce an average return on shareholders’ funds after tax of only 3.8%.
42,561 tax agents, 15,638 business activity statement (BAS) agents and 19,550 tax (financial) advisers regulated by the Tax Practitioners Board.
Registered tax agents are required to meet continuing professional education (CPE) obligations.
Charging life insurance to dead people – how would that work? Just ask AMP – as highlighted in the Banking Royal Commission, AMP has admitted charging $1.3 million in life insurance premiums to more than 4,600 dead people through their superannuation. This clearly doesn’t pass the ‘pub test’, and AMP are in the process of refunding the $1.3 million premiums. Thinking of going to a financial adviser to get some independent advice on life insurance for yourself? Perhaps thing again. Read More…
As any fat smoker will tell you, their problem is not knowing what to do, their problem is actually exercising and giving up the fags.
Measuring website traffic is the process of analysing the users who visit your website. Website traffic is measured in sessions or visits. The most common attributes examined are; Sessions (number of times a website is visited). Users (number of individual IP addresses that visit the website). Bounce Rate (the percentage of visitors who leave the site after viewing only one page. Session duration (the average time a user spends on A site). Pages (number of pages viewed). The behaviour of Read More…
Word-of-mouth referrals are the number one method professional services firms get leads and gain new business.
Australia has 2.2 million businesses with the average business owner being over 50 years old, and 84% over 35. The over 35 business owners search for accounting services in the following ways.
Statistically, 30% of businesses fail in the first year, and 70% within 10 years.
Utes used for work or business purposes will create tax deductions such as depreciation, lease payments, fuel, repairs, insurance, cleaning, and registration.
phoenix company is a commercial entity which emerges from a collapsed insolvent entity. The new company trades under the same or similar name and is able to present the appearance of business as usual to its customers.
The Federal Government’s plan to target, and reduce the size of the black economy, involves a variety of measures.
A cashless society exists when financial transactions are conducted not with money in the form of physical banknotes or coins, but rather through some other means.
The black economy is a clandestine market or transaction that involves illegality.
The GST tax gap is estimated at $5 billion and is the difference between the theoretical GST liability estimate and the actual GST collected.
Garnishee notices are a tool used by the ATO to collect outstanding tax debts from delinquent taxpayers.
ATO tax debts, like all debts, are legally enforceable obligations. The ATO collects these debts on behalf of the Australian Federal Government.
The Labour Party proposes to remove franking credit refunds which will cost taxpayers $5b per year.
The ATO has a variety of measures in place to help drought-affected taxpayers in financial hardship to manage their tax.
This is a very important question that every financial planning client would definitely like to know the answer to. But in practice, how would a client know (until it’s too late and they have paid the financial price for it)? There are numerous ways unethical financial planners can rip off and fleece clients. A few of the common methods include; Over-servicing. Putting clients into high commission investment products – e.g. $5 billion was ‘invested’ into tax-effective agricultural investments because the Read More…
Effective from 22nd February 2018, the Privacy Amendment (Notifiable Data Breaches) Act 2017, establishes the Notifiable Data Breaches (NDB) scheme in Australia.
The Federal Government is legislating to allow the Australian Taxation Office (ATO) to disclose information on businesses tax debts to registered credit reporting bureaus (CRBs).
Compliance services are now completely commoditised. The commoditising of compliance services was inevitable really, and the only surprising thing is how long it’s taken.
It’s well known that two heads (or more) are better than one for problem-solving, coming up with ideas, and management in general.
In the UK in 1974, passive investment income was hit with a 15% investment income surcharge which took the top rate to an incredible 98%.
Without a doubt, if Australia’s company tax rate stays at the current 30% rate, then future overseas investments in Australia will be impacted and reduced.
Ground floor in the right area near anchor businesses is always superior. You don’t get walk-in business to level 1 as such.
Strategies for successful tendering Tendering is the process of choosing the best or cheapest company to supply goods or do a job by asking several companies to make offers for supplying the goods or doing the work. Tendering occurs in all parts of business but is most common with government projects, construction, utilities, and infrastructure. Governments are heavily into tendering out their projects as this ensures that the awarding of contracts is fair and free from bribery and nepotism and Read More…
An accounting practice has six main customer segments.
Did you know that you can now post news and events directly to your map listing which then displays when your practice pops up in a Google Search.
Client satisfaction feedback is critical if we are to improve the weaknesses in our client servicing, while continuing to build-on our strengths.
The key to exceptional business results is consistency. If you do nothing else, be consistent. Provide predictable, reliable results every time.
Client satisfaction is defined as ‘the number of clients, or percentage of total clients, whose reported experience exceeds specified satisfaction goals.
To maximise client retention, you should do five things.
The five factors affecting client retention are client satisfaction, client delight, client switching costs, client relationships, and client service standards.
Client retention is about exceeding the client’s expectations so that they become loyal advocates for your practice.
The three ways accountants can get in trouble with debt financing their practice are: Using short term debt to make long term investments. Doing this creates problems as the short-term debt will need to be refinanced well before the long-term investment returns are available. If the short-term debt cannot be refinanced, the lender will either sell or close the business. Failing to consider that when increasing debt it increases business risk. Borrowers need to ensure their cash flows have a Read More…
Established practices have less funding needs than new practices as they are well established and producing ongoing revenue that covers the practice costs and owner’s living expenses.
Accounting practices, like all businesses, require funding to start, operate, and grow. The funding requirements of practices vary depending upon whether they are a new practice, established practice or an expanding practice. The practice funding can be provided by the practice owners from their personal savings and assets, through debt financing, or a combination of the two. With new practices funding is required to cover the initial practice set-up costs. These costs include the office fitout, office signage, furniture, equipment, Read More…
The benefits of your practice providing a service guarantee to clients are as follows
This strategy is about creating new services that you can provide to your existing client base. It is similar to the low hanging fruit strategy, but involves more work. The practice has to create the new services, train the staff on delivering the new services, and develop a marketing plan. When considering what new services to provide ask yourself two questions. Firstly, what service would provide immense value to existing clients? Secondly, does the practice team have the skills or Read More…
The first step to providing more existing services to existing clients is to identifying which services each client currently uses.
Productivity studies show that the most significant factor in determining an employee’s ability to focus is their physical environment.
Value adding software tools include modules on budgeting, scenario planning, business planning, valuations, profit improvement, tax planning, risk management, etc.
A good pricing strategy is one which is a good balance between the price floor and the price ceiling.
Approximately 4% of accounting practices outsource overseas at least part of their clients accounting, taxation and superannuation work.
Benchmarking involves comparing your accounting practice processes and performance metrics to the best accounting practices in the industry.
An accounting practice’s key performance indicators (KPIs) are the set of quantifiable measures that are used to gauge or compare performance.
The objective of debtor management is to minimise the time between issuing an invoice to a client and collecting payment in full.
Working capital management involves ensuring a practice has positive working capital so it is able to continue its operations.