Newsletter - pilotpartners.com.au

Volume 29 2014
directions
PAGE 2
Introducing Kylee Smith
Failing to Act on Fringe Benefits Tax
Changes Could Prove Costly
PAGE 3
Client Case Study:
u&u Recruitment Partners
PAGE 4
Welcome to the Team!
Congratulations
Pilot Community
WELCOME TO PILOT DIRECTIONS, OUR NEWSLETTER THAT PROVIDES NEWS, INDUSTRY ALERTS AND STAFF UPDATES.
Pilot has once again launched into a positive start for the New Year and we hope that this upward momentum
will continue throughout the entire year. We are seeing a growing interest from our clients as well as the
optimism with which they respond to us.
The Pilot team would like to wish you all an enjoyable and successful 2014. Please do not hesitate to contact
us if any guidance is required.
Brian McDonald
Managing Partner
IMPROVING YOUR CASHFLOW
Cashflow during the first quarter of the year is usually
between when the sale was made and when it
a big decision for business owners. Working with
the tightest for business owners. This is due to the fact
was invoiced, further delaying payment.
a lender and developing a finance package that
applies to the useful life of the new asset will free
that most businesses either shut down or have less
sales activity during the post Christmas period. As a
4.
Protect your margins – Price cutting to win
up the business’ cashflow.
result, cash receipts for businesses often drop to their
a sale will reduce the profitability and cashflow
lowest point during the first few months of the year.
coming into your business. A high volume, low
If you are seeking finance as a solution to improve your
margin business strategy will hinder cashflow and
cashflow, it is important to note that all lenders will
We would like to share a few tips for business owners
increase the working capital required to finance
expect the following as a part of the finance application:
that are designed to improve your cashflow:
operations.
1.
Accurate and timely information about the
performance of your business (including profit &
1.
Chase your debts – We often see business
5.
Reduce your working capital cycle – Most
owners allowing their customers excessive
business owners have a good idea about how
payment terms (greater than 45 days). They also
long it takes to convert stock or work into cash.
continue to let customers trade when there has
Seeking better payment and delivery terms can
been a breach of payment terms. Being disciplined
improve cashflow and your bottom line.
loss, cashflow and balance sheets);
2.
Office debt);
3.
2.
3.
A clear plan for the use of the borrowed funds and
have the means to repay the funds over the life of
the loan; and
and keeping your accounts in order ensures that
your customers won’t use you as their financier.
All statutory obligations have been met (e.g. Tax
6.
Work with your financier – Many of the large
4.
Realistic budgets and cashflow forecasts to
financial institutions are proactively working with
support your application (including sensitivity
Review current stock levels – It is sometimes
their clients to improve collections processes and
analysis for changes in your business).
amazing the amount of stock (and stock
free up cashflow. Some of the banks are now
lines) that some businesses hold on site. If you
offering same day settlements. We have also
At Pilot Partners we have successfully arranged debt
understand each item’s shelf time you will order
witnessed lenders providing various solutions
facilities for a number of our clients that are designed to
appropriately and avoid overstocking.
aimed at reducing working capital including trade
help them grow their business and effectively manage
finance and debtor facilities.
their working capital cycle.
Develop efficient business systems –
Buying verses borrowing – Capital
Should you require assistance in this area please contact
department is critical. Any hold ups between
expenditure (whether it’s plant and equipment,
your key adviser at Pilot on (07) 3023 1300.
the two departments may result in a time lapse
technology upgrades or new premises) is always
Co-ordination between the sales and accounts
PILOTPARTNERS.COM.AU
7.
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INTRODUCING KYLEE SMITH
Since joining Pilot in 2008, Kylee Smith has
for them and their business. At Pilot we are
been an enthusiastic and proactive member of
always developing innovative ideas to assist our
the Taxation Services division. A country girl at
clients to grow their business in a tax effective
heart, she loves living in the city and being a
manner.
part of the Brisbane business community.
HOW DO YOU HELP YOUR CLIENTS?
WHAT IS YOUR SPECIALITY OR
FOCUS?
The Taxation Services team assists clients with
Although I assist clients across a wide range
a wide variety of taxation matters covering all
of tax matters, I particularly enjoy helping
Federal and state taxes. We endeavour to meet
clients with setting up a new business. Putting
their goals as well as tax law requirements.
together tax efficient structures, especially
for businesses expanding into Australia, is very
We also work closely with all of the other
rewarding.
business divisions in the firm. Our advice and
guidance ensures that they have the right
taxation resources and know-how to steer their
clients in the right direction.
TELL US SOMETHING ABOUT
YOURSELF THAT WE WOULDN’T FIND
ON THE PILOT WEBSITE?
I love the outdoors; as someone who has grown
WHAT DO YOU LIKE MOST ABOUT
BEING AN ACCOUNTANT?
up in a country town I enjoy horse riding, fishing
Taxation legislation is always changing. I like
“catch a fish greater than 1 metre” off my
following the tax law and passing on the
bucket list.
and the bush. However, I am still trying to cross
relevant details to our clients. This assists them
with keeping their financial affairs current,
I’m also a keen photographer with a particular
whether personal or business (related).
focus on taking scenic shots.
I also enjoy the problem solving aspect of my
Kylee can be contacted on (07) 3023 1321 or
role. Helping clients find a solution that works
[email protected]
FAILING TO ACT ON FRINGE BENEFITS
TAX CHANGES COULD PROVE COSTLY
From 1 April 2014, the tax rate levied on fringe benefits will increase from 46.5% to 47%. This increase
has resulted from the additional 0.5% Medicare Levy legislated last year to fund the National Disability
Insurance Scheme.
Not-for-profits organisations that are registered with the Australian Charities and Not-for-profits
Commission (“ACNC”) and other organisations, such as public hospitals, have the ability to access Fringe
Benefits Tax (“FBT”) exemptions and rebates to reduce their FBT liability (subject to various caps). Due to
the changes in the FBT rate, the amount of fringe benefits that can be provided to employees without
exceeding the caps has been reduced as follows:
Applicable Threshold per employee ($)
Maximum amount
if no GST credits
available ($)
30,000 (Public benevolent institutions other
than hospitals, health promotion charities and
rebateable employers)
17,000 (public and non-profit hospitals)
Maximum amount
where GST credits
available ($)
15,899.94
14,421.69
9,009.96
8,172.29
If your organisation is entitled to the FBT concessions or you are an employee of such an organisation and
you have entered into salary sacrifice arrangements exceeding the above caps during the FBT year ended
31 March 2015, you may be liable for additional tax next year.
If you would like further information about your eligibility to access these concessions or the impact the
changed FBT rate will have on your organisation, please do not hesitate to contact Murray Howlett or
Josh Meggs from Taxation Services Division on (07) 3023 1300.
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CASE STUDY
u&u Recruitment Partners has developed a
As a result of the merger, u&u is now owned and
Brad and Lachlan also worked with the newly merged
reputation as “the” recruitment firm of choice in
operated by four board members. Each of the owners
entity so that it was appropriately structured for tax.
Queensland. Since opening its doors in 2010, the
understood the importance of having the firm
They also looked at ways to improve the financial
firm has grown to over 20 staff specialising in critical
appropriately structured for growth.
controls and operations of the business.
Human Resources, IT, Accounting, Legal, Procurement,
“We were very excited about working together,” said
“Strong growth is never a bad challenge,“ stated Brad.
Business Support and Health, Safety and Environment
Craig Sneesby, Managing Director and Board Member
“However, it is still important to ensure the business is
recruitment. It has been awarded Recruitment Agency
at u&u. “We had the right mix of experience, drive and
structured correctly and that all the owners are on the
of the Year at the CareerOne Excellence Awards and
ambition. We knew u&u was going to have a strong
same page moving forward.”
was noted on the BRW Fast Starter lists for 2012 and
future.”
corporate support functions including Executive,
Brad and Lachlan are now working with the finance
2013. The firm also recently won Best National Start
team at u&u to develop analytics and regular reporting
Up Agency at the 2013 REA Awards.
BUSINESS SOLUTIONS FROM A BUSINESS
related to growth development and cash flow
u&u prides itself on taking the time to understand
NAVIGATOR
forecasting.
its client and candidate needs. It offers unparalleled
u&u Director of Client Services and Board Member,
service levels to its clients across the full range of
Scott Horton met Brad Ryan, a Partner in the
"By working with Pilot we feel that we no longer have a
private and public sector organisations, from listed
Business Advisory and Taxation Services Divisions,
transactional relationship with our accounting provider.
multinational companies and large government
at a corporate business lunch. The two struck up a
It’s reassuring to know that the answers to any of our
departments to small businesses.
conversation that led to a follow-up meeting and an
business questions are just a simple phone call away."
Craig Sneesby
introduction to the other u&u board members.
“We were never looking to change accounting
providers,” said Craig. “But once we met with Brad we
realised that we were missing the personal contact
and relationship from our existing accountant.”
Brad also introduced u&u to Lachlan Ballinger,
a Manager in Pilot’s Business Advisory Division. Both
Brad and Lachlan took time to meet with the board
members and learn their business goals.
“We strive to form a partnership with our clients,”
said Craig. “We expect the same in return from those
FINANCIAL AND OPERATIONAL IMPROVEMENTS
involved in our business.”
•
Brad immediately identified the need for u&u to take
•
Developed business structures and obtained
insurance to ensure the owners are protected
out business insurance to protect the owners in the
Developed and implemented financial controls
to improve operations of the business
case of an adverse event.
•
“The foundation and strength of u&u is based
•
Introductions to other like–minded business
advisors
BUSINESS CHALLENGE
around its four owners,” said Brad. “It is therefore very
In 2013, Craig Sneesby and his business partner
important that the business and its employees are
merged their existing recruitment firm with u&u.
protected.”
The merger was an excellent cultural fit enabling
Access to accounting resources that can be
called upon at any time
For more information contact Brad Ryan from our
Business Advisory and Taxation Services Divisions on
u&u to grow to the next level and become the go-to
Brad introduced u&u to Mark Lauder from Lauder
(07) 3023 1300 or
recruitment firm in Queensland.
Financial Solutions who tailored an insurance solution
[email protected].
that met the needs of the business and its owners.
PILOTPARTNERS.COM.AU
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WELCOME TO THE TEAM!
As a proudly growing firm, Pilot is pleased to
welcome a number of new team members every
year. This year we are excited to introduce five new
graduates to our different business divisions.
Brie Edwards joined the firm’s Corporate Advisory
Division with three years of part-time experience.
She graduated from university with a Bachelor of
Commerce, majoring in Accounting and Financial
Planning.
Ramona Gerber is involved in Pilot’s Taxation
Services Division. While working in Townsville
for three and a half years, Ramona acquired her
Bachelor of Business, majoring in Accounting from
James Cook University.
The Performance and Recovery Division has
accepted two graduates. Justine Jackson
completed her Bachelor of Commerce at the
University of Southern Queensland after double
majoring in Accounting and Economics.
Demi Hatchman graduated from Queensland
University of Technology with a Bachelor
of Business, majoring in Accountancy and a
Bachelor of Corporate Systems Management. She
previously worked at Pilot for three weeks as a
vacationer in 2013.
We also welcome Linda Yang as a graduate
accountant in the Forensic Accounting Division.
Linda achieved a Bachelor of Commerce at the
University of Queensland.
CONGRATULATIONS
At the end of 2013, Pilot proudly appointed four new members to the management team.
Congratulations to Pilot’s newest Chartered
Accountants! Andrea Von Lingen and Sam Hall
Brian Keane has been promoted to Associate Director in Corporate Advisory Division and Alicia
completed their studies earlier this year.
Odenthal is now a Manager in Business Performance and Recovery Division.
Josh Meggs and Kylee Smith were both promoted to Managers in the Taxation Services Division.
We would like to thank them all for their dedication to the firm and to their careers.
Brian Keane
Alicia Odenthal
Josh Meggs
Kylee Smith
PILOT COMMUNITY
Trivia Night
Every year the Tax Institute holds a trivia night that Pilot has proudly participated in for the past four
years. Triumphing over large and mid-tier firms as well as some of Brisbane’s national law firms, our
representing team members took home a well deserved win.
Congratulations to Natalie McKay, Alicia Odenthal, Christine Connor, Greg Bell, Monica Minuzzo
and Kylee Smith for successfully answering questions about entertainment, general knowledge, music,
folklore, geography, sport, and many more. Here’s to all the future victories to come.
Chartered Accountants
Level 10, Waterfront Place 1 Eagle St, Brisbane QLD 4000 Australia
P +61 7 3023 1300 I F +61 7 3229 1227 I pilotpartners.com.au
chartered accountants
DISCLAIMER: This publication contains general information only and is not intended to constitute financial advice. Any information provided or conclusions made,
whether expressed or implied, do not take into account individual circumstances. It should not be relied upon as a substitute for professional advice.
Pilot is a trade mark of Pilot Nexia Pty Ltd ACN 105 267 061 ABN 58 144 064 946 Liability limited by a scheme approved under Professional Standards Legislation.
Member of Nexia International, a worldwide network of independent accounting and consulting firms.
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