Monthly Archives: December 2021

Worried about your cash flow?

Worried about your cash flow?  It’s the number 1 concern at this time of year.  And understandably so as cash flow is the oxygen that keeps any business running.

Cash flow concerns this year are a bit different.

Whilst some business have sold their socks off over the last 18 months, others have got by whilst others have struggled.  Now that many businesses have been able to fully trade again, a Christmas holiday slowdown hasn’t exactly come at the right time for many.

It also appears as the ATO, who haven’t been chasing unpaid debts, now seemingly appears to be actively be chasing unpaid tax debts.  And for those with tax debts unreported and unpaid for more than three months, there is particular concern as it has been said by liquidators that the ATO will use the Director Penalty Regime to assign and collect business tax debts from directors.

Not being able to pay wages and other expense sin January and February is what keeps small business owners awake at this time of year.  And the problem is publicly available accounting software reports on the past.  Some may now market cash flow forecasting but that is very short term and incomplete.

So what do you need to understand and control your cash flow?

  • We can provide you with a number of tips gained form any years working with and advising a vast array of industries.
  • We have a specialised cash flow tool that provides full 4 way forecasts.

So what should you do?

We invite you to a free 30 minute meeting in which we can again understanding of your situation and concerns and then explain ways in which we can help.  You have nothing to lose and may end up sleeping better and enjoy Christmas.

Should you change business structure?

Trust, company, partnership or sole trader?  Choosing the right structure to run your business is not an easy task.

You have to take into account such things as:-

  • Asset protection
  • Family succession
  • Tax
  • Admitting or removing unrelated business partners.

Each structure has their own advantages and disadvantages depending on your personal circumstances.

But even with the right choice made at day one, personal circumstance often change over time to the extent that the original entity that once served its purpose no longer does.  Or becomes a hindrance.

There are two main obstacles to changing structure:-

  • Cost – both monetary and time (as in notifying customers etc as well as getting insurance and telecommunication contracts re-set in your new entity)
  • Transaction costs – in particular Capital Gains Tax, but also there can also be considerations such as Stamp Duty

But there are forms of relief under the Tax Act which either defer, reduce or eliminate and capital gain.

Too many accountants are focused on processing the past, whether that be a Tax Return or a BAS.  At MRS, we are focused on our clients’ long term success and security.  We are currently re-structing two clients structure – one to allow the admission of business partners and the other to obtain greater protection, greater tax efficiency and eventual exit of the business founder at a much reduced capital gain.

Are you concerned that you are not in the best structure?  Or may this is not something your accountant has not discussed with you.  Either way, we welcome a free 45 minute exploratory discussion.

The 5 key things to implement in 2022

Hard to be believe this year is almost over!  It has been a tough year for many.  But that said, the economy has performed surprisingly well, we have high vaccination rates and statements from our leaders that we are not going back into lockdown.

It seems as though we can relax over the Christmas break with a degree of calm.

The Christmas break is a great time to take a breath and re-asses your work and personal life.

But having started work on the back of the 1983 recession and worked through the ealry’90’s recession, not to mention the GFC, the 1997 Asian crisis and other such events, the effects of covid will play out for a couple of years yet.  We are not out of the woods yet.

In light of the uncertain times that lie ahead, on Wednesday 12th January we will explore 5 key things to address and implement in 2022

  1. Re-evaluate how covid has changed your business and moreover how your business needs to adapt. In particular we will explore who is now your customer target base and how to find them.
  2. Amend your STP payroll reporting to not fall foul of Fair Work Australia obligations.
  3. Making a profit is the goal but the oxygen to a business is its cash flow. We will explore how to better manage and improve your cash flow.
  4. With a federal election looming, take up any advantage under existing tax laws.
  5. Being in business carries the risk of getting sued. We will examine key asset protection strategies to protect the wealth you have worked hard to generate and/or inherited.

You can reserve your place at this 45 minute webinar by clicking here

And as we are passionate about helping small business owners through these difficult times, we welcome your passing on this invitation to family, friend and business associates.