Small to Medium (SME) Businesses ($500K to $50M)

Sometimes it’s necessary to reconsider the way in which a business has been structured and to develop a new approach for its future. Changes to the business’ size and operations, owners’ circumstances or broader regulatory environment, may all necessitate a new strategy for stronger asset protection and tax efficiency. An outdated or inappropriate structure may expose the owners’ or business’ assets to unnecessary risk. To continue to build on the best possible foundations, structures should be reviewed on a periodic basis. At Allworths we consider our clients’ structures on an annual basis and proactively raise any concerns or opportunities with them if we believe another arrangement would be more beneficial. If a client wishes to proceed with a restructure, we are able to manage the process from start to finish - ensuring they receive the best possible result.

Kerry Packer once said, “If anybody in this country doesn’t minimise their tax, they want their heads read.” Within the bounds of Australian law, we apply all our commercial knowledge and experience in developing practical strategies that you can apply for tax minimisation or deferral purposes. Without expert tax planning, it can be challenging to determine the optimal timing in the collection of outstanding amounts, the payment of bills or debts and the disposal of assets. There are usually additional opportunities to legally minimise or defer tax liabilities, including the recent $20,000 instant asset write-off measure, which can greatly assist SMEs in managing their cash flow. Other opportunities include the R&D Tax Incentive, Export Market Development Grants and many more. In addition to providing expert tax strategy, we help our clients ensure that they are benefiting as much as possible from the various concessions and assistance programs that are available at state and federal levels.

SME owners and operators tend to value time above all else. Every distraction from profit-generating activities should be absolutely necessary. With Allworths, you no longer have to worry about managing your books and payroll. If your accounts are still being managed manually, we generally start with a cloud migration to a trusted online platform such as MYOB, QuickBooks or Xero. With any of these platforms, you immediately benefit by having a real-time dashboard of your business’ financial health and the ability to auto-generate financial reports or statements. They also enable us to save you money by managing your accounts as efficiently as possible using the latest technology. Clients can utilise additional cloud tools such as Receipt Bank to keep track of their supplier invoices, bringing their ongoing workload down to very little! With Allworths, you can remain focussed on your profits and passion with the peace of mind that your books are being kept in tip top order.

Compliance activities may be a necessary evil, in that they are required by the Corporations Act and the ATO, but they offer SME business owners more than just an easy night’s sleep. Although compliance activities can be complicated and need to be performed correctly, they are also the foundations upon which SME owners fund their ongoing growth and ultimate exit. The good news is maintaining accurate and complete accounts in an ongoing and timely manner has only become easier given the rise of cloud accounting technologies such as Xero. Accounts will be examined by banks, investors, partners and purchasers to help establish the financial health of your business. By keeping accurate and up-to-date records, SME businesses are always well-placed to capitalise as much as possible on the opportunities that lay before them.

Most businesses aren’t required to prepare financial statements in accordance with the full spectrum of accounting standards. On the other hand, reporting entities, including publicly listed corporations, are required to produce general purpose financial statements enabling key stakeholders (such as investors) to make informed and timely decisions. This can be a time-consuming, highly complicated and arduous process. At Allworths we help these clients ensure they are compliant with International Financial Reporting Standards, as required by Australian Corporations Law. Large unlisted entities can opt for reduced disclosure requirements (RDR general purpose), somewhat lessening the time and cost burden. However, in any case, it’s important to engage a suitably qualified and experienced team to ensure that you are keeping up with ever-changing accounting requirements.

The popular cliche, “you need to work on the business, not in the business” might be a little glib, but there’s certainly truth in it. SME business owners or managers tend to have increasing obligations to customers, staff, creditors and investors. As they struggle to stay on top of these mounting time-pressures, regular budgeting and reporting against Key Performance Indicators can fall to the wayside. However, without prioritising these activities, the business as a whole can begin drifting off course or lose direction altogether. It’s important to engage a suitably qualified “fresh set of eyes” to partner with you towards the achievement of your financial and other goals as a business. One that will not lose track of their role even during exceptionally busy periods. With the benefit of our support, as well as the help of cloud-based tools such as Xero and Spotlight Reporting, your business can start operating in a more methodical and informed manner towards the achievement of its set goals.

Scaling an SME business requires a systematic mindset ruled by financial systems and processes. Those who take the time to comprehensively document their financial policies and procedures are then able to induct and continuously train their growing team with relative ease. This is not something that many business owners are well-equipped to do, as they are generally focused on day-to-day operations and sales. Seeking experienced support in this area means enjoying the benefits of systematic thinking and operations; including rapid scale, ability to attract finance and more; without creating an additional time burden. You get to keep doing what you love, while we ensure that your financial practices can be replicated and implemented by others.

Sooner or later, all SME businesses change hands. It could be in the event of a sale, impending retirement or the unfortunate reality of death. In order to survive these times of upheaval, businesses must plan for seamless transitions with minimal conflict and disruption to business operations. In our experience, with family-owned and run businesses in particular, those who openly communicate about their collective vision for the future of the organisation are the ones who have the highest chances of emerging from the process not only unscathed but stronger and more optimistic. It is paramount to have a plan and not all plans are created equal. Effective business succession strategies consider broad-ranging issues, spanning: tax implications, legal requirements, operational systems and processes, business valuation, insurance, multi-stakeholder communications and more. It’s a highly complex process that must be applied on a case-by-case basis to ensure the best possible results. It takes an experienced team with diverse commercial experience to produce the best possible results in these highly emotionally-charged and difficult times.

There are many situations in which it’s necessary to know the latest value of your business. Sometimes it just warms the heart to know how far you have travelled. Realistically, as business owners, we tend to seek out business valuations when, for example: planning for retirement, seeking to raise debt or equity finance, dealing with divorce proceedings, estate and succession planning, trying to attract new partners or even a buyer. At Allworths, we have the in-house capability and years of experience in the science (and art) of arriving at a fair and justifiable value of most SME business types in a timely and accurate manner.

When buying a used car, a look under the bonnet and a test drive are always advisable. In business purchases or investments, the stakes are obviously much higher and a thorough checkup is paramount. It requires an experienced team of people working not only with you but closely with the target business to fully understand the reality of the situation on the ground, often beyond the numbers alone. A lemon of a business could suffer from common pitfalls like the overstatement of assets, understatement of liabilities, pending legal actions and outstanding tax or debt obligations. Being able to identify all the possible issues and inconsistencies early in the process is critical before too much time or money is wasted on a dud business. On the upside, the right due diligence partner could help you make a life or business-changing purchase with confidence.

At Allworths we are highly experienced in all aspects of SME due diligence, including: operational, financial, tax and legal compliance and human resources.

External audits can be undertaken voluntarily, for example, in preparation for the sale of a business. Having 3 years’ worth of audited financial statements can help get negotiations off to the best possible start, on transparent terms. Of course, audits are also required in many cases by both regulators and often banks seeking to check on the financial health of their debtors. Companies meeting two of three tests set by ASIC; annual turnover ($50M+), total assets ($25M+) and employees (100+); are required to conduct an external audit annually. At Allworths, to develop a total understanding of your business and report to relevant stakeholders, we follow a proven audit methodology, including: understanding the business, understanding key audit risks, internal control testing, substantive testing and reporting. We always endeavour to make this potentially painful experience as clear, communicative and timely as possible.

There may come a time when your proprietary limited company has simply served its purpose and, though solvent, is no longer required. Rather than continuing to pay ASIC registration, accounting and other fees, you may instead opt to wind up the entity. For companies holding less than $1,000 in assets, the deregistration process is relatively inexpensive and straightforward; however, it is important to understand the potential risks involved, e.g. the company can be unexpectedly reinstated and sued.

Another option open to solvent companies looking to wind up is voluntary liquidation. Any company with more than $1,000 in assets will need to undertake this longer and more complex process. A common case for voluntary liquidation is when companies with capital gains reserves and/or assets purchased pre-19 September 1985 wish to distribute these amounts to shareholders tax-free. Allworths can guide you through this journey from start to finish, ensuring you meet all your obligations under the law and achieve the most favourable outcomes possible.

Note: Although we cannot advise on insolvency matters, we would be happy to recommend a trusted partner firm.

For Australian businesses looking to secure a foothold overseas and break into more lucrative or advantageous markets, we can be your stepping stone through our trusted international networks. In particular, through our affiliation with the , we are able to make connections to specialist advisors all over the world. We have made referrals to a wide range of countries, including: United States, United Kingdom, New Zealand, Singapore, India, Hong Kong, China, Thailand, Malaysia and South Korea. In addition to making valuable connections that will hopefully expedite your plans for world domination, we can also advise on the often-complex Australian tax implications of any international expansion.