Do You Require Additional Financial Services?

The CCH report, ‘SMEs – the fine line between failure and success’^[1], identified key services that SMEs want supplied by accountants, including:

• Management of Costs
• Management Monitoring
• Business Plans
• Assistance in Raising Capital or Loan Funds
• Expansion Advice

Digital disruption – short-fuse, big bang?

The Deloitte report, ‘Digital disruption – short-fuse, big bang?’^[2], identified 17 industries, comprising 65% of the Australian economy, which will face significant ‘disruption’ by 2017. The industries identified by Deloitte were:

Short-fuse, big bang category

• Retail Trade
• Arts and Recreation
• ICT and Media
• Finance
• Business and Professional Services
• Real Estate
• Construction

Long-fuse, big bang category

• Education
• Agriculture
• Government Services
• Health
• Transport

Short-fuse, small bang category

• Accommodation and Food Services
• Wholesale Trade
• Construction

Long-fuse, small bang category

• Manufacturing
• Mining

Strategies suggested by Deloitte

Whist each of these industries have different characteristics and different time frames, Deloitte suggested that, to minimise threats posed by ‘digital disruption’ and to maximise an organisation’s ‘digital potential’, it’s all about ensuring businesses are ‘digital survivors’. Deloitte’s suggestions included:

• recalibrating cost structures;
• replenishing revenue streams; and
• reshaping corporate strategies.

‘Digital transformation’ is a journey of continuous improvement. Deloitte has identified that, to survive and prosper during these challenging times, businesses need to put customers at the centre of their experience and then balance competing interests and elements, whether people, platforms or planning.

Accountants can assist

Accountants offering Chief Financial Officer (CFO) services and business advisory services have invested considerable time and energy into their systems and training programs to enable them to deliver a wider range of services other than taxation. We believe it’s a good idea for you to assess your satisfaction on the range of services your accountants are offering.

• Are you happy with the range of services your accountant offers to you?
• Are you interested in receiving additional services from your accountant? If so, have you contacted your accountant and had a discussion with them?
• If your accountant doesn’t supply the additional services you’re seeking, who will you approach?

Your accountant would probably appreciate some feedback on the type of services you require, so they can advise whether they intend to supply those services or whether they can refer you to an affiliated firm. Businesses everywhere, both yours, your accountant’s and ours included, are faced with additional challenges of supplying services for customers, to survive the ‘digital disruption’ period. The type of services accountants, offering business advisory services, can supply to assist their clients to navigate the ‘digital disruption period’ include:

• analysis of your financial performance by undertaking a business health check;
• debtors’ review;
• budgets and cashflow forecasts preparation;
• Personal Property Securities Register (PPSR) due diligence review;
• business plan preparation;
• due diligence review of all aspects of your business;
• succession planning;
• preparing your business for sale; and
• buying a business.

If you require any of these services, please don’t hesitate to contact your accountant and have a discussion with him/her in relation to the type of services you would like to receive. Accountants who are offering a wider range of services are able to assist small business operators in their quest for additional information and value-adding services. In the first instance, we suggest you have a discussion with your accountant, to ascertain whether your accountant is able to supply you with the additional services you require. If your accountant is unable to assist you, please don’t hesitate to send an email to peter@essbiztools.com.au, with your location and postcode, and we will send you the names of accountants, within your area, who are able to give you an introduction to business advisory services and other services you’re seeking. If you have any questions on services accountants, utilising ESS BIZTOOLS and ESS BIZGRANTS, are offering to their SME clients, please don’t hesitate to contact us. If you wish to receive future episodes of Survival Hints for Small Business series, you can visit our iTunes – Podcasts - Survival Hints for Small Business page and subscribe to our podcasts. If you have any questions or suggestions on future items to be covered in Survival Hints for Small Business, please don’t hesitate to contact us. [1] SMEs - the fine line between failure and success, CCH, April 2013 [2] Digital disruption - short-fuse, big bang?, Deloitte, September 2012