Accounting Advice

We’ve all heard them; Accountant jokes. (My personal favourite is “Accountants aren’t boring. They just find really boring things incredibly interesting.”)

Well, put aside your preconceptions & let me introduce Ross Ludwig, Accountant CPA & BEC Welshpool’s own Accounting & Taxation specialist.

There’s nothing dull about Ross!

“I’ve had a successful & varied career, including 25 years in my own Accounting business,” says Ross “but my first 12 months at the BEC have been more stimulating & rewarding than I could have imagined.”

“It’s been an exciting journey of mutual discovery,” he says.

“Besides imparting knowledge to clients, I’ve learned a tremendous amount with them & from them.”  

Ross is right at the “front line” of the BEC’s service.  When new clients walk through the door it’s generally to take advantage of a FREE one hour consultation with Executive Officer, Chris Gray. Then it’s over to Ross for a detailed snapshot of their business.

“Typically, I first see people prior to starting, or during the early stages of their business,” says Ross.

“Chris & I take them through the real essentials of their enterprise; things like the choice of business structure, asset protection, tax management & compliance, legal issues, the risks of leases & much more,” he says.

“But possibly the most useful  ~ & powerful  ~  insight we provide is a Cash Flow projection for the first 12 months of the client’s business, along with a Profit & Loss for the same period. We’ll even break it down to show how many customers per day, at how much per head, they’ll need to break even. It’s absolutely invaluable information. And we are able to provide this at very low cost – less than half the rate of an accounting rates due to Australian Government funding.”

Ross says,  "it’s inspiring to see businesses start from scratch, prosper & grow".

But sadly, such success stories are not the norm.
Many businesses struggle and as we know many cease to trade beyond 2 - 3 years.

The good news is that Ross says there are proven steps to maximize your chances in a competitive environment.

If you’re considering Taking Over An Existing Business:

	Select the enterprise carefully. Pay special attention to the type of business & its competition
	Carry out exhaustive Due Diligence
	Ensure you have Adequate Working Capital, to operate, to grow & in case of emergencies
	Be mindful of your regular BAS & PAYG obligations & budget for them. Ross recommends setting aside around 20% of takings to meet your annual Income Tax liability

	Besides all of the above, Ross warns; "Beware of the “feel good” enterprise".
	That’s the one born of the misguided belief that because you’re passionate about a hobby or pursuit, you’ll be about to turn it into a profitable business
	Conduct rigorous Feasibility & Marketing Studies
	Prepare to do the hard yards. New businesses require sustained, even brutal, hard work. This can come as a shock to people whose whole working life has been as an employee
	Find a competent Financial Adviser/Accountant & keep constantly abreast of how your business is doing & where it’s going and talk often to the BEC

And above all, Ross says, “Remember; businesses are always a work in progress.”

Until next time,

Kym Bidstrup,
Media Manager BEC Welshpool