Technology

- Cloud Accounting Systems (Xero, QuickBooks)

- Balance between Theory and Application.

- ATO – Automation of Income Tax Returns

Bitcoin

- Understanding financial statements

One Stop Shop

- Central Advisor

- All referrals in house – easier for client

- Develop deeper relationship with client – higher retention rate

Accounting Industry Disrupters

HOW "ACCOUNTING" HELPS

AND

WHAT EDUCATIONAL TOOLS

BEST EQUIP FUTURE

SUCCESSFUL BUSINESS PEOPLE

3 Key Tools

Communication

Planning

Knowledge/Skills

Communication Building Enduring Relationships + Trust

How?

- Preference for Correspondence

- Decision Making Processes

- Key Person/People

- Tolerance for risk

- Care/Listen

- Build rapport (Time/Experience)

- Proactive

- Promise PLUS Follow through

- Being the Translator

Why?

- Client Retention – competition

via social media/cloud/internet

- Meet their Needs

- Solve their problems (not

always tax)

- Develop Successful thriving

businesses

- Impact lives (Legacy)

- Positioned as Central Advisor

- Provide certainty about future

Growth Plan

Budget

Marketing

One Page Plan

Staff

Planning

- They are optimistic - 95% believe

opportunities exist to grow their

business, yet only 22% have a plan

to grow the value of their business.

- Low reality check on the risks or

downsides.

- “I have a goal, but I don’t really

have a plan to get there.”

One Page Plan

Ideas, Plans Action,

Strategy Focussed,

Complacent, No Plan,

Operational focussed

CASE STUDIES from the “Real World”

Civil Construction Company (Succession)

• Business originated in 1980’s

• Turnover approximately $6million

• Current owners now in their 50’s (husband & wife),

looking to retire.

• Leave Legacy

• Ensure enough from proceeds to support retirement

lifestyle

• Son working in business – wanted him to benefit

• Weren’t sure of exact time frame to exit

Motor Vehicle Accessory Franchise

• Business 1 x store + 1 x franchise store

• Unit Trust Structure – Son purchased units from father

• Took an aggressive approach to growth

- Approximately 4 new locations

- Entry of a new unit holder

- Now looking to Franchise + more

IT Company – Supply & Service

• 4 x existing directors/shareholders (> 55)

• 1 x active in the business

• 1 recently passed leaving the wife to the shares

• No buy/sell insurance in place

• Active Director not confident with financials & big

focus on operations (limits growth opportunity)

• Other employees with leadership qualities but no

access to large amounts of capital

Family Law Valuation – Single Expert - Wealth Management/Mortgage Broking Firm in Perth,

WA

- 2 x Directors

- 1 Director going through divorce proceedings

- Business needs to be valued as part of the family asset

pool.

- Shareholders receiving consistent flow of dividends over

a period of 5 years at least

- If shareholders leave, the consideration is based on their

share of Net Tangible Assets of the Company at that point

in time.

Farming Business – Next Generation

- Dealing with next generation

- When are mum and dad ready to retire?

- Structure for this?

- How do you fairly split assets if some do not choose to work on the

farm.

- Is the asset big enough to fulfill the plan?

- Family meetings (keeping all family members informed as a single

unit)

Function Centre - Profit Improvement

- Experienced Owners

- Has been profitable in the past

- Acquisitive growth in past 12 months\

- > 50 employees

- New bookkeeper – no previous experience (wife)

- Other owner spending up to a day just on payroll

- Not as profitable as when it was purchased

Buying a Business

• Should I buy this Business?

• What is the business worth?

• What should I pay for it?

• How much finance can I get?

How accountants can help – Feasibility Study

- Clients Experience in the Industry

- Value vs Price

- Client’s Access to Capital

- Structure

- Software Requirements

- Sale Contract (additional inclusions)

- Due Diligence

Conclusion

• Manage Students Expectations (Classroom vs Real World in

Business. Provide Perspective with Theory

• Encourage them to get involved in some form of

volunteering/employment as soon as possible. Develop

industry contacts.

• Keep them aware of developments in the industry –

technology etc