Business Accounting Frequently Asked Questions

Business Advisory FAQ’s

What is Business Advisory?

Business Advisory services help businesses identify potential opportunities, develop strategies to capitalise on those opportunities, and introduce greater efficiency into their operations.

How can a business advisory firm help my company?

Business advisory firms can provide guidance in key areas such as strategy development, financial management, marketing, sales support, human capital management and technology implementation and optimisation.

When should I consider engaging with a business advisor?

Every organisation reaches a point when they need assistance or advice from outside the organisation to move forward and achieve success beyond its current level of performance. A good time to engage with a business advisor is when you are making strategic decisions that could have long-term implications for your company’s success or growth trajectory, or even if you simply need an unbiased sounding board at critical points in the decision-making process.

What kind of skills should I look for in a business advisor?

When selecting a business advisor, it is important to consider the specific expertise and experience they bring to your organisation. This could include industry knowledge, financial acumen, strategic planning capability or process improvement expertise. Additionally, you should ensure that the advisor’s communication style is compatible with yours and that they understand both the practical and operational sides of your business. Finally, make sure that they have a track record of delivering successful results for their clients.

How much do business advisory services typically cost?

The cost of a business advisor’s services will vary depending on their skill level, experience, and the scope of the project or engagement. Generally speaking, most advisors charge an hourly rate or a flat fee for their services. It is important to discuss fees up front and clearly define expectations for delivery and outcomes before beginning any work. 

 Additionally, some advisors may offer flexible billing arrangements such as success-based payments or other performance-based incentives, which could help reduce upfront costs and ensure that your interests are aligned with those of your advisor.

How do I choose the right business advisor for my company?

Selecting the right advisor will depend on several factors, such as your unique needs, budget, and timeframe. You should assess potential advisors based on their experience in your industry or within your specific area of need, and look at their track record of success with similar businesses. Additionally, you should discuss exactly what types of services they can offer and how these would benefit your organisation. It is also important to consider their communication style and availability to ensure that you have a good working relationship with them during the project period. Finally, it is wise to obtain references from existing clients to get an independent opinion on their services before making a commitment.

What should I expect from a business advisor?

When working with a business advisor, you should expect them to provide expertise and guidance on the best strategies for achieving your goals and objectives. A good advisor will take the time to understand your unique needs, develop tailored solutions that fit your budget and timeline, and deliver measurable results in a timely manner. Additionally, they should keep you updated on progress and be available to answer questions or address issues as they arise. Ultimately, you should look for someone who is reliable, knowledgeable and can help propel your business forward towards success.

What are some benefits of utilising a business advisory service?

Utilising a business advisory service can provide numerous benefits to an organisation. These include access to impartial advice and industry expertise, plus practical solutions to help achieve growth or overcome challenges. A business advisor can also provide valuable insights on trends and best practices that could impact your business strategy, as well as offer guidance on long-term planning. Finally, they can help identify opportunities for efficiency improvements or process automation, which can lead to cost savings or increased profits over time.

What steps should I take once I have secured a business advisor?

Once you have chosen an appropriate business advisor for your company, the next step is to clearly define the scope of services and ensure that both parties are in agreement about goals and expectations. It is important to communicate regularly throughout the engagement and establish key performance indicators that can help evaluate progress. It is also helpful to schedule regular check-ins with your advisor to review results and ensure that you remain on track. Finally, be sure to express appreciation for the value they have provided by offering timely feedback and showing gratitude whenever possible. Doing so will help foster a positive working relationship and maximise the long-term benefits of your advisory engagement.

What should I do if I am not satisfied with my business advisor?

If you find yourself dissatisfied with your current business advisor, it is significant to first discuss the issue openly with them directly to provide an opportunity to resolve any misunderstandings or miscommunication issues. If this does not lead to a satisfactory outcome, it is recommended to look at alternative options such as switching advisors or seeking a second opinion if appropriate. Ultimately, you should make sure that any changes are made in a way that aligns with your goals and objectives so that you can achieve the desired results.

Virtual CFO FAQ’s

What can a Virtual CFO do?

A virtual CFO provides financial expertise and guidance to help businesses manage their finances, grow profitability, and achieve their goals.

How does having a virtual CFO benefit my business?

Having a virtual CFO benefits your business by bringing in the financial expertise of an experienced professional who can provide strategic advice on budgeting, cash flow management, tax planning, investments and more.

What services does a Virtual CFO offer?

Services offered by Virtual CFOs include financial forecasting and planning; budgeting; monitoring cash flow; developing investment strategies; identifying cost savings opportunities; managing expenses; reviewing loan terms; providing insight into industry trends and regulations; evaluating current accounting systems/software programs for accuracy/efficiency purposes among other services.

What type of experience should I look for in my Virtual CFO?

When selecting a Virtual CFO, you want someone well-versed with many years’ experience in finance related matters such as taxation law, audit compliance procedures etc. They should also be highly skilled in using technology to streamline processes , such as cloud-based accounting software or automation tools that will allow them to provide a quicker and more accurate service. Finally, they should have excellent communication skills to be able to explain financial matters to average non-financial expert clients.

How much does a Virtual CFO cost?

The cost of a virtual CFO can vary depending on the services required and the experience of the professional. Typically, this cost is agreed up-front and billed on a monthly basis. Additionally, since many businesses have seasonality factors when it comes to their finances, it may be possible to negotiate a fixed rate for certain services or periods of time.  This can help reduce the overall cost of engaging a Virtual CFO.  

Moreover, depending on the needs of your business, it may also be beneficial to consider outsourcing certain services such as payroll processing or bookkeeping.  This can help reduce costs while still providing you with the financial expertise of a professional.   Ultimately, it’s important to make sure you are getting value for money when selecting a Virtual CFO provider, so be sure to do your due diligence before engaging them for any services.

Are there other options available besides hiring a Virtual CFO?

Yes, there are other options available if you don’t have the budget or need for an experienced Virtual CFO. These include DIY services such as cloud-based accounting software and online learning resources that provide guidance and instructions through the entire financial process. 

Additionally, you could look into engaging a bookkeeper or accountant to oversee your finances, as they are typically more cost-effective than hiring a Virtual CFO. However, it’s significant to note that these services will not provide the same level of expertise and guidance as an experienced Virtual CFO. Ultimately, it’s best to assess your needs before making any decisions about which option is best for you and your business.

What are the advantages of having a Virtual CFO?

The main advantage of having a Virtual CFO is that it provides access to experienced financial professionals who can provide tailored advice and support for your business objectives without needing to hire a full-time finance manager. This can include everything from budgeting, cash flow management, tax planning, investment strategies and more. 

Additionally, a Virtual CFO can save you time by streamlining processes such as accounts reconciliation or creating custom reports which would otherwise require significant manual effort. Having an experienced professional handling your finances can also reduce stress associated with managing them, which allows you to focus on other aspects of running your business. 

Finally, engaging a Virtual CFO can also help you make better decisions when it comes to investments or cost savings opportunities, as they can provide an unbiased and objective viewpoint.  Ultimately, the advantages of having a Virtual CFO depend on the specific needs of your business, but it can definitely be a valuable asset in achieving your financial objectives.

What should I look for when selecting a Virtual CFO?

When selecting a Virtual CFO, you should consider the experience and qualifications of the provider, as well as their understanding of your specific needs. It’s important to ensure that they are certified or licensed in the areas they offer services in, such as accounting, tax planning or investment advice. 

Additionally, they should have extensive knowledge of financial regulations and industry best practices to ensure you receive quality advice and reliable service. You should also look for providers who offer flexible options such as part-time or project-based engagements, which can help reduce costs while still providing access to an experienced professional. 

Finally, it’s significant to make sure their pricing structure is clear and transparent to ensure there are no hidden costs or surprises. Ultimately, taking the time to find the right Virtual CFO can help you make better financial decisions and maximise your resources.

What other services could a Virtual CFO provide?

A Virtual CFO can provide many services beyond what might be traditionally associated with a CFO, such as creating budgets, forecasting cash flow or managing investments. They can also offer specialised services such as providing advice on strategic planning, helping with market analysis, evaluating risks or offering guidance on mergers and acquisitions. 

Additionally, they can provide support for setting up new systems or processes for efficient bookkeeping, accounting, or payroll management. Finally, many Virtual CFOs offer consulting services that can help you with developing a business plan, raising capital or expanding into new markets. 

Ultimately, the services offered by a Virtual CFO will depend on their experience and qualifications, so it’s important to find one that best suits your needs.  By leveraging the right Virtual CFO, you can free up time and resources while still getting access to quality financial guidance.

What are the benefits of having a Virtual CFO?

The main benefit of having a Virtual CFO is that it provides you with access to experienced financial professionals who can provide tailored advice and support for your business objectives. This can help you make better decisions and maximise your resources while also reducing stress associated with managing finances. 

Additionally, they can save you time by streamlining processes such as accounts reconciliation or creating custom reports, which would otherwise require significant manual effort. Finally, many Virtual CFOs offer flexible options such as part-time or project-based engagements, which can help reduce costs while still providing access to an experienced professional.

Ultimately, engaging a Virtual CFO can be a valuable asset in achieving your financial objectives.

Investment Advisory FAQ’s

What is Investment Advisory Services?

Investment advisory services include professional advice from an advisor based on your individual needs and goals. The objective of the advice is to provide you with guidance for investing and help you manage your investments more effectively from a tax and asset protection perspective.

How does an investment advisory service help me?

An investment advisor can offer advice on tax planning strategies, retirement planning, as well as other areas related to managing your personal finances. They can also act as a sounding board when making decisions about where and how to invest.

Are there different types of investment advisors?

Yes, there are different types of investment advisors. Some specialise in certain areas, such as retirement planning, while others may provide more generalised services. It is important to understand the type of knowledge and experience each advisor can bring to the table.

What should I consider when selecting an investment advisor?

When selecting an investment advisor, it is important to research their background and experience to ensure they are qualified to provide quality advice and guidance. You should also read reviews from past clients and ask questions about their strategies, fees, and services offered. Finally, make sure you feel comfortable working with them by having a conversation before signing any contracts or agreements.

How much will I pay for investment advisory services?

Investment advisory fees vary depending on the type and level of service provided by your advisor. Typically, advisors charge on a fixed-fee or an hourly fee based on the amount of time spent providing advice and guidance.

Self Managed Super Funds FAQ’s

What is a Self Managed Super Fund (SMSF)?

Self Managed Super Fund (SMSF) is a trust arrangement set up to provide retirement income for its members, who are also the trustees of the fund. The trustees manage the investments and assets of the fund, making decisions in accordance with the law, while also meeting their members’ retirement needs.

Who can establish an SMSF?

In Australia, any person 18 years or over can establish an SMSF as either a sole trustee or with one to four other individuals acting as co-trustees. All trustees must be members of the fund.

What types of investments can I hold in my SMSF?

Your SMSF can hold a variety of investments, including cash, listed securities such as shares and managed funds, direct property and collectables such as artworks or motor vehicles.

How does an SMSF work?

An SMSF works by pooling the retirement savings of its trustees to provide for their retirement needs. The trustees are responsible for directing the fund’s investments and managing its assets in accordance with tax laws. They also need to ensure that the fund meets its obligations under superannuation law and other regulatory requirements.

What are the costs associated with setting up an SMSF?

The setup costs of an SMSF may vary depending on your individual circumstances and what types of investments you are looking to make. Generally, costs may include setting up the fund (including the legal structure) and ongoing administration fees.

What are the benefits of an SMSF?

The main benefit of an SMSF is that it allows trustees to have greater control over their retirement savings as they manage the investments directly. Additionally, having an SMSF can mean better tax treatment, increased flexibility in terms of investment options, and potential cost savings through economies of scale when investing larger sums of money.

How do I set up an SMSF?

You will need to register your SMSF with the Australian Taxation Office (ATO). This involves completing a registration application form, providing documentation such as a trust deed, establishing an Australian bank account in the name of the fund, and obtaining an Australian Business Number (ABN) for the fund.

Can I borrow money through my SMSF?

Yes, you can borrow money from a financial institution to purchase certain assets under limited recourse borrowing arrangements (LRBAs). This means that if the loan is not repaid, the lender cannot claim any other assets owned by your SMSF.

Who regulates SMSFs?

SMSFs are regulated by the Australian Taxation Office (ATO), which sets out rules and guidelines to ensure compliance with superannuation laws and regulations, as well as providing advice on setting up and running an SMSF.

Are there any risks associated with establishing an SMSF?

Yes, there are some risks associated with establishing an SMSF, including the potential for penalties and fines for non-compliance with taxation regulations or superannuation laws. Additionally, trustees may need to put in extra time and effort to manage the fund’s investments, as well as researching and staying up-to-date on the relevant legislation and regulatory requirements. It is important to seek professional advice before setting up your SMSF.