Q. With Christmas approaching we expect to have some increase in our costs and also some interruption in our debtors collections. We are concerned about the impact on our cash flow. Do you have any suggestions on how to better manage this?
A. Christmas does bring some variation in typical trading patterns. It is not consistent though across business sectors. For businesses like retailers, it should cause acceleration in cash flow, through increased trading and consumer activity. For businesses in the manufacturing and building sector it is often a time where production stops for a number of weeks. So the first thing to do is to understand the impact at an industry level. Don’t fall into the trap of thinking it will be the same for everyone. Once you know this you have a base to work against.
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Tags: budget planning | cash flow | christmas | debtor management | forecast
Posted in Business Scruples (Q&As), Export, Infotelligence |
Q. We think we may be entitled to both Research & Development concessions and possibly Export Market Development grants. We’ve overlooked these in the past, but want to take advantage of them if we are entitled to them. What is the best way to confirm our entitlement and then make our claims?
A. This is something you should take specialist advice on. If your accountant works in this area they should be able to assist you to identify both whether the expenditure incurred in the 2010 financial year is eligible expenditure and then also quantify your claim entitlement.
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Tags: Export Market Development Grant | R&D Tax concession
Posted in Business Scruples (Q&As), Darwin News & Events, Export, Infotelligence, Local News & Events |
Q. We have a well established business and own our business premises. Everything has operated in a single partnership structure. This has kept our accounting and reporting requirements quite simple. Friends keep telling me we should be looking at a different structure. Do you have any comments?
A. The choice of business structure is generally determined by a range of influences and there is no one answer that is right for all circumstances. The key issues to consider are risk protection, tax efficiency, simplicity and efficiency of management and succession. Using a single partnership structure you probably have the simplicity and efficiency of management piece covered. The issue to look at is whether the other areas are equally well managed or whether the benefits of alternate structures outweigh the cost of change.
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Tags: business structure | partnerhip | Strategic business planning | Tax strategy and structuring
Posted in Business Scruples (Q&As), Darwin News & Events, Export, Infotelligence, Local News & Events |
Q. I am looking to buy a business. I’ve had my accountant value a couple that I was interested in, however the valuation came in well below the asking price. Am I looking at the wrong type of businesses or are they normally over priced?
A. It is not uncommon for the price of a business to exceed its true value. There are a couple of reasons for this.
Firstly, price and value are not the same thing. In a perfect market they should be, but we don’t operate in such a market.
Normally price will trade at either a premium or a discount to value. Price is a measure of the current market and available supply and demand. Where there is a limited supply of a particular type of business or a good quality business then it is likely that the business will trade at a premium to value.
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Tags: Business valuation & appraisal | Sale of business
Posted in Business Scruples (Q&As), Export, Infotelligence |
Approximately 60% of Australian’s die without a will in place. The average age of people with a will is 82 and the average age of people who die without a will is 62. Apparently, the majority of us believe that we are going to die of extreme old age.
Dying intestate can be complex enough but if you have a Self Managed Superannuation Fund the situation can become even more complex.
Dying without a will in place is likely to mean that there will be a significant period of time before your beneficiaries can access your superannuation – even if you have binding death benefit nominations in place. The reason is that once the trustee dies, there may not be anyone with the legal authority to approve the payment of your superannuation to your nominated beneficiaries. If you are a Director of a trustee company with multiple directors, it will depend on whether the trust deed and the company constitution allow the other directors to act without you.
With many of us building a significant amount of wealth within SMSFs, it’s important that these funds are not unnecessarily tied up when our families most need them.
Click here for more information about how Hayes Knight can assist or speak to your Hayes Knight Adviser today.
Tags: Estate Planning | Self Managed Super Funds | SMSF | Will
Posted in Infotelligence |
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