In the dynamic landscape of modern commerce, business advisory services have become an essential component for companies aiming to navigate through complex business environments.

We offer comprehensive support, drawing from a wealth of expertise to provide tailored advice that addresses the unique challenges and opportunities our clients face. Our services extend beyond traditional financial management and delve into strategic planning, enhancing performance, and fostering sustainable growth.

A boardroom meeting with executives discussing financial strategies. Charts and graphs on the wall, laptops and papers on the table

Through our business advisory services, we play a pivotal role in assisting organisations to manage risk, ensure compliance with ever-changing regulations, and secure a competitive edge in their respective industries. By partnering with us, businesses gain access to informed perspectives and actionable strategies that catalyse development and lead to long-term success. We are dedicated to offering guidance that not only solves immediate concerns but also fortifies the foundation for future scalability and innovation.

Key Takeaways

Understanding Business Advisory Services

A group of professionals discussing financial strategies in a modern office setting. Charts and graphs are displayed on a large screen, while individuals engage in lively conversation

In our exploration of business advisory services, we focus on three critical aspects: the scope, the benefits to business owners, and how it differs from consulting. Each element plays a crucial role in driving success and sustainability for businesses.

Scope of Advisory Services

Business advisory services encompass a wide range of professional services that are tailored to support businesses in their strategic decision-making processes. These services extend from basic business advice to comprehensive strategies aimed at enhancing performance. Our advisory services include:

Benefits for Business Owners

Business owners can gain a significant advantage from our advisory services, given the precise and customised insights provided for their unique situations. Key benefits include:

Advisory vs Consulting

While advisory services and consulting are often used interchangeably, there are distinctions:

Advisory ServicesConsulting
Ongoing partnershipProject-specific engagement
Strategic developmentProblem-specific solution
Focuses on future planningFocuses on current issues
Steers long-term goalsTargets immediate results

In our advisory role, we form a long-term relationship with businesses, emphasising tailored strategies for success and sustainability, contrary to consulting, which typically revolves around solving specific problems with defined outcomes.

Strategic Planning and Performance

A group of people brainstorm around a table with charts and graphs, discussing strategies and goals for business growth and success

In this section, we uncover the crucial role of strategic planning in laying a foundation for measurable business success. We'll address how to develop a robust business plan, establish effective Key Performance Indicators (KPIs), closely monitor financial performance, and frame succession planning as well as exit strategies to ensure long-term viability and profitability.

Developing a Business Plan

Our approach begins with crafting a comprehensive business plan, an essential roadmap that delineates our objectives, strategies, and actions to drive business growth. We articulate our vision, setting realistic goals and timelines, and map out these elements to foster a clear direction for our future.

Setting Key Performance Indicators

We then define our Key Performance Indicators (KPIs) – quantifiable metrics that gauge the efficiency of various aspects of business performance. KPIs such as customer acquisition costs, employee turnover rates, and net profit margins are not only pivotal in tracking progress but also in driving accountability throughout our organisation.

Monitoring Financial Performance

Ongoing scrutiny of our financial performance is vital. We employ a systematic approach to evaluate our financial statements, comprehensively examining our income, expenses, cash flow, and revenue growth. This vigilant financial monitoring allows us to make informed decisions, maintain profitability, and adjust strategies as necessary.

Succession Planning and Exit Strategies

Finally, we lay the groundwork for succession planning and exit strategies, acknowledging the importance of preparing for future transitions. Whether it's passing on leadership or exiting the market, we establish clear succession protocols and strategic exit plans to protect the legacy of our business and uphold stakeholder value.

By focusing on these core areas, we solidify our strategic foundation and enhance our prospects for sustained business performance.

Risk Management and Compliance

A team of professionals discussing risk management and compliance strategies in a modern office setting

In the ever-evolving business landscape, we understand that effectively managing risk and ensuring compliance are critical to safeguarding the integrity of our organisation. We focus on addressing these crucial areas through comprehensive strategies and leveraging digital advancements.

Understanding Compliance Obligations

In Adelaide, as well as throughout Australia, compliance obligations form the backbone of operational integrity. We meticulously evaluate legal and regulatory requirements specific to our industry and locale to ensure we adhere to all pertinent laws and guidelines. These obligations are continuously monitored to align our practices with evolving standards.

Implementing Digital Systems

We embrace digital systems to streamline our compliance and risk management processes. Implementing such systems enables us to efficiently track compliance metrics, assess risks in real-time, and ensure accurate data management. Integrating these technologies not only enhances our efficiency but also bolsters our capabilities in predictive risk assessment.

Financial Management and Reporting

Our approach to financial management and reporting is underpinned by robust risk management strategies. We prioritise transparency and precision, adapting our financial practices to meet the demands of dynamic economic environments. This includes the diligent preparation of financial statements that reflect the true financial position of our business, ensuring that our stakeholders receive reliable and timely information.

By integrating these practices into the core of our operations, we fortify our business against potential threats and maintain the highest standards of compliance and financial stewardship.

Business Growth and Development

In this section, we'll explore how strategic marketing, refined business structures, and precise financial projections are pivotal to fostering business growth. We focus on areas vital for business owners to leverage in order to scale their enterprises effectively.

Marketing and Brand Strategy Sessions

We understand that a solid marketing and brand strategy is the cornerstone of any growth initiative. Through comprehensive strategy sessions, we help align your brand's core values with market opportunities. We facilitate sessions aimed at identifying your unique selling propositions and enabling you to capture your target market efficiently.

Optimising Business Structure

A well-optimised business structure forms the backbone of your company, supporting sustainable growth. We assist in evaluating and restructuring your organisation to ensure agility and resilience in a dynamic marketplace. Whether you're a start-up scaling up or an established business refining your operations, our guidance is designed to prepare your structure for future expansion.

Financial Forecasting and Budgeting

Accurate financial forecasting and budgeting are essential for growth planning. We focus on realistic and actionable forecasts that help in anticipating financial needs and managing resources. Through meticulous budgeting, we ensure that your investment in innovation and marketing is not only sustainable but also catered towards maximising returns on research and development (R&D).

By honing these facets of your business, we aim to place you on a trajectory for success and longevity in the competitive business landscape.

Small businesses often face challenges during this time of year. By taking a proactive approach and planning ahead, you can ensure a financially stress-free holiday season. Reach out to us for assistance and let us help you navigate through this period with ease.

Are you planning to take a well-deserved break from your business this year?

During this time of year, small businesses often face challenges. While expenses persist, cashflow can be affected when debtors go on holiday.

Leading up to the holiday period, is your business cash flow in good health to carry you through? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.

Planning your cash-flow over the holiday period

Invoice early - Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.

Chase payment - Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.

Talk to suppliers - A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.

Review your costs - Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.

Talk to the bank or tax department - If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.

We can help you navigate the holiday period and help you alleviate cashflow worries. So you get a well deserved break.

When you’re planning for a break, book an appointment with us.

This new financial year, the ATO is rolling out updates to superannuation and trust distributions. Here are the key changes that will commence on 1 July 2022:

Increase of the Superannuation Guarantee to 10.5%

The Superannuation Guarantee (SG) rate will rise from 10% to 10.5% on 1 July 2022 and will continue to increase by 0.5% each year until it reaches 12% on 1 July 2025.

Removal of the $450 superannuation contributions cap

Currently, you don’t have to pay superannuation for most employees who make less than $450 per month. However from 1 July 2022, the $450 threshold test will be removed, and employees aged 18 or over will need to be paid superannuation regardless of how much they earn.

It’s important to note too that from 1 July 2022, super will be payable to employees under 18 if they work more than 30 hours per week regardless of how much they earn.

Trust distributions to companies

The ATO recently released a draft tax determination dealing specifically with unpaid distributions owed by trusts to companies. The new guidance applies to trust distributions arising on or after 1 July 2022.

Distributions made to companies on or after that date will be treated as Division 7A loans if left unpaid. The precise timing of the Division 7A loan will depend on the wording of the resolution to pay the distribution.

Work-test removed – enabling those under 75 to contribute to super

Currently, a work test applies to superannuation contributions made by people aged 67 or over. However, from 1 July 2022, this work test has been removed and individuals aged under 75 years will be able to make or receive non-concessional or salary sacrifice superannuation contributions. These contributions are subject to existing contribution caps.

The work test will still apply to personal deductible contributions.

Please contact us if you’d like to know more or if you have any questions.

The federal budget was handed down last night and with a federal election expected in May, this is a conservative budget that focuses on improving the skills shortage in Australia.

We have summarised below the key announcements from last night’s budget for you.

Small businesses

Small businesses with a turnover less than $50million will receive a bonus 20 per cent tax deduction for expenditure incurred (including depreciating assets) that supports their digital adoption up to an annual limit of $100,000.

These small businesses will also receive a bonus 20 per cent tax deduction for expenditure incurred on eligible external training courses provided to their employees.

Cheaper fuel (hopefully)

In an effort to bring down fuel prices, the government is halving the tax levied on each litre of fuel for 6 months. This will be effective from 30 March 2022 until 28 September 2022.

Low and middle income earners

Individuals earning less than $126,000 will be eligible for a $420 tax offset. This is in addition to the existing $1,080 offset, bumping the total offset up to $1,500.

Apprentices

A new Apprenticeships Incentive System will commence from 1 July 2022 which will see new apprentices in high-demand industries receive up to $5,000 for the first two years of their training, while their employers can access a 10 per cent wage subsidy that will drop to 5 per cent in the third year.

The proposed system will replace the generous 50 per cent wage subsidy scheme which is expected to stop on 30 June 2022.

Superannuation

For self-funded retirees, the government has announced that the temporary reduction of the superannuation minimum drawdown will be extended until 30 June 2023.

The announcements in last nights budget need to be passed by the appropriate government authorities before they legally come into effect.

Please contact us if you’d like to know more or if you have any questions.

Director identification number

A new government regime came into effect on 1 November 2021 which will require directors of companies to register for a director identification number (director ID).

What is a Director ID?

A director ID is a unique a 15-digit identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

Directors will only ever have one director ID. They'll keep it forever even if they:

Who needs a director ID?

You need a director ID if you're a director of a company. This includes directors of a corporate trustee of self-managed super funds (SMSF).

You don't need a director ID if you're:

When do you need to apply?

When you must apply for your director ID depends on the date you become a director.

For existing directors, they have until 30 November 2022 to apply. However, if you become a director between 1 November 2021 and 4 April 2022 you will need to apply within 28 days of appointment.

Date you become a directorDate you must apply
On or before 31 October 2021By 30 November 2022
Between 1 November 2021 and 4 April 2022Within 28 days of appointment
From 5 April 2022Before appointment

If your company intends to appoint new directors, it will be important to ensure that they are aware of the requirements and timeframes to establish their director ID if they do not already have one.

How to apply for a director ID?

You must apply for your own director ID to verify your identity. No one can apply on your behalf.

It’s free to apply for a director ID and the fastest way to do this is online using the myGovID app.

If you have not already set up myGovID, you will need to download the app onto your phone or device and create an account. Please visit How to set up myGovID

In addition to your myGovID, you will need to have two documents that verify your identity such as:

Once you have a myGovID, and information to verify your identity, you can log in and apply for your director ID using the link below. The application process should take less than 5 minutes.

https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

How to apply if you cannot get a myGovID

If you can’t get a myGovID, the best way to apply for a director ID is by calling the Australian Business Registry Service on 13 62 50 between 8.00am and 6.00pm Monday to Friday.

You can apply by phone if you have:

Please contact us if you’d like to know more or if you have any questions.

From 1 November 2021, where no choice is made of a superannuation fund by a new employee, the employer can no longer use their default employer super fund. Instead, there is a requirement that the employer must use the employee’s 'stapled super fund'.

A 'stapled super fund' is an existing super account of an employee that follows them as they change jobs. The employer will be required to source the name of the superannuation fund from the Australian Taxation Office (ATO).

What you need to do from 1 November 2021

Step 1: Offer your new employees a choice of super fund

You need to give your new employees a Super standard choice form and pay their super into the account they tell you on the form. There is no change to this step of your super obligations.

If your employee doesn’t choose a super fund:

You may need to log into the ATO’s online services and go to ‘Employee Super Accounts’ to request their stapled super fund details. Your accountant can do this for you.

The ATO will provide your employee’s stapled super fund details after they have confirmed that you are their employer.

You can pay into a default fund if your employee doesn’t choose a super fund and the ATO has advised you that they don’t have a stapled super fund.

Please contact us if you’d like to know more or if you have any questions.

Disclaimer: All strategies and information provided on this website are general advice only which does not take into consideration any of your personal circumstances. Velich Advisory does not represent, warrant or guarantee that the communications on our website are free of errors, virus or interference. Liability limited by a scheme approved under professional standards legislation.
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© Velich Advisory Pty Ltd 2022

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