The document discusses 5 things an accountant may or may not tell their clients. It summarizes: 1. Breakevens - Knowing your breakeven points helps set sales targets and review budgets quarterly. 2. Tax - Paying tax is necessary to make money, but minimizing tax is not always best. Discuss options with your accountant. 3. KPI's in business - Key performance indicators like hourly rates and productivity help measure business performance. 4. Budgets - Use accounting systems and breakevens to create budgets and review them weekly/fortnightly. 5. Cloud solutions - Accountants can help clients leverage cloud-based accounting and financial software.

1. 5 Things Your Accountant
May or May Not Tell You

3. Outline for Today
Real tiny bit about your presenters.
Quick Poll
What are the 5 things that your
Accountant may or may not tell you.
Our Guest – What makes a good
accountant!
Questions?

4. Nathan McDonald - BSBN
Business Instructor – Amazing Clients
Martial Arts Instructor – Over 100
Students
Passion is
Helping

5. Bill Parkes – Evolution Accountants
CPA
Brisbane Based
Passion is Numbers

6. Poll!
Do you get all
you need out
of your
accountant?

7. WE WILL NOT
Bag OUT ANY
AccountantS

8. 5 Things You May Or May Not Be Told

9. 1. Breakevens

10. 1. Breakevens
P&L Expenses
Loans, Leases, Taxes
Owners Drawings
Future Capital Investment
Profit

11. 1. Breakevens
Know Your Breakevens
Use these as the basis of your
budgets
Sets Sales Targets
Review Quarterly

12. 2. Tax

13. 2. Tax
Minimising tax is not
always the best option

14. 2. Tax
Paying Tax, Making Money
Plan for tax payments, BAS/PAYG
account. Avg 30% Profit going to tax
man
Have a fair idea of at least 1 year
ahead
Discuss options with your accountant.

15. 3. KPI’s in Business

16. 3. KPI’s in Business
Do you have
KPI’s in your
business?

17. 3. KPI’s in Business
Your Hourly Rate
Maximum Earning Capacity
Team Productivity %
Project/Job GP Percentages
Sales & Marketing Conversions

18. 3. KPI’s in Business
www.kpilibrary.com

19. 4. Budgets

20. 4. Budgets
Use your accounting system
Base it off break evens
Review Weekly / Fortnightly
Manage Budget Fortnightly
Quarterly Reviews

21. 5. Cloud Solutions

22. 5. Cloud Solutions

23. 5. Cloud Solutions

24. Bill Parkes
WHAT MAKES A
GOOD
ACCOUNTANT?

25. What makes a good
accountant
Five points to consider as a
framework to assess if you
have a good accountant

26. 1. Appropriate qualifications

27. 2.Proactive – Tax Minimisation
Company Structuring
Administrative changes
Legislative changes
Tax planning – estimating tax
Superannuation contributions
Negative gearing
Not just income tax

28. 3.Proactive – asset protection
Use of structures such as companies
Use of a corporate trustee in trading trusts
Use of one individual as the director in
trading companies or in trustee
companies of trading trusts
Use of the other individual as trustee in
investment trusts
Use of multiple entities in high
Use of fixed and floating charges

29. 3.Proactive – asset protection
Use of offsetting of loans
Incurring stamp duty
Use of trust arrangements
Use of company rather than trust
Use of multiple lenders

30. 4.Proactive – Other areas
Financial performance
Benchmarks
Wealth Creation
Addressing Business
Development
Financing issues

31. 4. Proactive - Other
 Potential liquidity and insolvency issues should be identified and
early intervention steps enacted and if irreversible the assistance of
a insolvency strategist (not a liquidator)
 Government support issues should also be addressed – e.g.
Centrelink benefits, industry grants (export development program),
R & D incentives

32. 5. Too active – Insider tells all
 Corporate view of business – Management (CEO), Accounting
(CFO), Legal, IT, Finance, Marketing, Sales, HR, Administration, etc
 You’re the CEO and your accountant should be the CFO but shouldn’t take on
the other roles
 Accountants typically offer business development advice in their suite of
services.
 Typically this would represent a very small percentage of their revenue and
therefore is area of minimal expertise in the service offering
 ‘Business development’ versus financial analysis
 Financial analysis may involve more frequent financial reports (quarterly /
monthly financial statements), preparation of budgeted profit and
losses, balance sheets and projected cash flow statements, horizontal and
vertical analysis, establishing and monitoring KPI’s, job analysis leading to
average hourly rates and productivity or utilisation rates (industry dependent).

33. Too active – Insider tells all
 Financial analysis conclusion – increase revenue, increase efficiency, increase
utilisation/conversion rate, monitoring liquidity and monitor the result
 Role of the Black Belt Business – how to increase revenue, efficiency
 Role of financier – address financing (debtor finance)
 Business advisors to accountant – promotion of value added services based on
value based pricing – but can be outside of expertise
 Example –Following free initial analysis and meeting a proposal to increase profits
by $50,000 based on potential, involves a $12,000 up front fee, initial analysis,
increase profits by $50,000, three way projection (budgets and cash flows),
monthly financial statements and review letter inc KPI analysis, quarterly meeting
and tax planning
 What’s missing – Black Belt Business – how to

34. Bill Parkes
Evolution Accountants

35. Vertical Business
BUGGER!

36. Path to Business Mastery
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 Initial 1-2-1 Session
 Workbooks and Syllabus
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 Full Member Portal with everything

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38. Number One Thing From Today

39. Questions?