Empowering SMEs

There are still many challenges ahead for most small businesses and medium-sized enterprises.  Many of your clients will have gained an appreciation of the extra services that you can provide to them following their first-hand experience of assistance from their accountants during COVID-19. The big question now is are your clients ready for the post COVID-19 recovery? Read more: https://www.essbiztools.com.au/index.php?option=com_zoo&task=item&item_id=303&Itemid=639

The final COVID-19 Survival Panel webinar for SMEs is being presented on Wednesday, 28th October 2020 at 12-noon AEST (1.00pm AEDT). The keynote presenters are Ashley Evans, Managing Director, AAA+ Financial Solutions and Peter Towers, Managing Director, ESS BIZTOOLS and ESS Small Business. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=273&Itemid=639

Greetings from ESS Small Business – We hope you're starting to see some light at the end of the tunnel. Do you need an insight into research and development? The feedback that we're receiving is that many small business and medium-sized business operators have been using the work from home restrictions during COVID-19 to commence research and development activities on better ways to undertake business activities within their businesses. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=272&Itemid=639

Worst Economic Position In Living Memory The Australian economy has been badly affected by COVID-19 Coronavirus, as indeed have the economies of most countries. The Australian Parliament has passed the extension to JobKeeper legislation at a smaller amount from 1st October 2020 to 3rd January 2021. For eligible team members working more than 20 hours per week the JobKeeper payment in the October to December period will be $1,200 per fortnight. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=271&Itemid=639

Concerns About Business Funding From 1st October 2020 Onwards Whilst the Australian government has announced that the Coronavirus SME Guarantee Loan will be redrawn and applications enabled until 30th June 2021, a $1 million maximum loan for a period of 5 years, with the money being able to be used for any business purpose, there is still an expectation that many businesses will have difficulties in negotiating with banks for new funding facilities from 1st October 2020. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=270&Itemid=639

Greetings from ESS Small Business – Tradies' Charge Out Rates Review And Corporate Governance. In our next ESS Small Business COVID-19 Survival Panel webinar for small businesses and medium-sized enterprises, Kevin Thiele an experienced Management Accountant will discuss the concepts of establishing charge out rates for tradies so as to ensure that the... Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=269&Itemid=639

The Prime Minister and Treasurer have announced significant changes to the JobKeeper program: From 28th September 2020, businesses will be required to reassess their eligibility for JobKeeper with reference to their actual GST turnover in the September quarter 2020, as compared to the September quarter in 2019, to be eligible for the JobKeeper payment from 28th September 2020 to 3rd January 2021. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=268&Itemid=639

The latest developments in Victoria, where Level 4 restrictions have now been imposed in Melbourne and Level 3 in Regional Victoria, have really highlighted the challenges that can confront businesses all over Australia if COVID–19 coronavirus is allowed to become established in a particular location. Read more: https://www.essbiztools.com.au/index.php?option=com_zoo&task=item&item_id=282&Itemid=639 

Want to learn more about ESS Small Business? (Click here) Greetings from ESS Small Business – Tax Ruling on JobKeeper and Research & Development. The Australian Taxation Office has issued a draft taxation determination relating to “Notional Deductions for Research and Development Activities Subsidised by JobKeeper Payments”. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=267&Itemid=639

The Australian government made a number of very important announcements this week, including the JobKeeper extension which, from 28th September 2020, will comprise 2 tiers with a reduction in the fortnightly payments payable to people who qualified at 1st March 2020. Tier 1 applies to people who were working more than 20 hours per week at 1st March 2020. Tier 2 applies to people who were working less than 20 hours per week at 1st March 2020. In both cases, the people must still be employed by the business/charity. Tier 1 payments from 28th September 2020 to 3rd January 2021 will be $1,200 per fortnight and from 3rd January 2021 to 28th March 2021 will be $1,000 per fortnight. Tier 2 payments from 28th September 2020 to 3rd January 2021 will be $750 per fortnight and from 3rd January 2021 will be $650 per fortnight.   Read The Full Article Here

Greetings from ESS Small Business – using a coordinated social media campaign and having an awareness of the equity fund raising available for small businesses are the key items for today. The situation in Victoria has created a significant wake-up alert to businesses all over Australia as well as governments and the general public. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=264&Itemid=639

Greetings from ESS Small Business – "Strategies Include Systems and Adequate Funding for Your Business". A lot has happened in the last few months. On 18th June 2020 the “Financial Review” published an article “Accountants Become the “Centrelink” of Business World” – “The accountant of the future will need to be a compliance expert who can grapple with fast changing rules while providing broader advice to clients about their business”.     Read The Full Article Here

Greetings from ESS Small Business – Are You Planning Your Strategies for the New Financial Year? There is still a lot of debate about what the government is likely to do relative to a number of programs, including JobKeeper, as we approach the original deadline date of 30th September 2020.  The government has already announced changes to JobKeeper as it applies to the Childcare Industry and there is speculation that JobKeeper will continue for some industries that are suffering additional pain because of COVID-19 coronavirus. read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=262&Itemid=639

Greetings from ESS Small Business. Due to administrative problems in setting up the grant processing mechanism with State government departments, there have been some delays in the rollout of the Home/Renovation Grants for homebuilders and for renovations to houses. The $25,000 grants made available by the Australian government to individuals who are constructing a new house or renovating an existing house, are expected to significantly enhance the building industry and some trade business classifications all over Australia.   Read The Full Article Here

Want to learn more about ESS Small Business? (Click here) Greetings from ESS Small Business. Thousands of business owners and team members have been working from home for the last 2-3 months and may have given some thought to the development of new products, processes or services by undertaking some initial research and development. They might now be wondering whether they should continue to work on this business idea to see whether a commercial product or service could be developed and whether they could obtain a taxation deduction for the expenditure that they have incurred. If you're one of these people – congratulations because Australia needs to develop new products and services.     Read The Full Article Here

Want to learn more about ESS Small Business? (Click here) This week we looked at: Utilisation of three-way forecasts (“predictive accounting”) to understand where your business is heading. Emerging from the 'lockdown blues'.   Paul Barnaby, Predictive Accountancy Consultant and Australasian representative of PlanGuru, made the following comments relative to the preparation of financial forecasts:   Read The Full Article Here

Greetings from ESS BIZTOOLS and our affiliates.  Welcome to this weekly update on issues confronting accountants, business advisors and bookkeepers from the COVID 19 coronavirus. This week we looked at: Financing your Business Engaging your Accountant to add Value to your Business Read The Full Article Here

Greetings, we hope that you're well and looking after yourself as well as your clients and that you're communicating with your clients in relation to their reopening strategies. The National Cabinet has started the first tentative steps towards reopening the Australian economy with the release of the three step plan process that is to be implemented, primarily by state and territory governments, according to their own timetables. Read more: https://www.essbiztools.com.au/index.php?option=com_zoo&task=item&item_id=267&Itemid=639

Greetings from ESS BIZTOOLS and our Affiliates, welcome to this weekly update on issues confronting small businesses and medium-sized enterprises from the COVID-19 coronavirus. Preparing for the end of the lockdown. Read More: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=256&Itemid=639

Greetings from ESS BIZTOOLS and our Affiliates, welcome to this weekly update on issues confronting small businesses and medium-sized enterprises from the COVID-19 coronavirus. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=255&Itemid=639

This week the Australian Taxation Office has released rules relative to the calculation of alternative decline in turnover for the JobKeeper payments and confirmation has been issued on JobKeeper payments that can be claimed for people other than employees.   Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=254&Itemid=639

Greetings – we hope you’re staying safe and still operating your businesses or, if not, you're able to think about some business strategies to implement when you to recommence business operations again. The Australian government, through the Stimulus Package Number 3, which was unanimously passed by Parliament last week, has implemented a number of significant strategies to assist many small and medium-sized enterprises that are struggling with the challenges of COVID-19 Coronavirus. Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=253&Itemid=639

This Australian government has now released three stimulus packages to assist small businesses and medium-sized enterprises to survive the COVID-19 coronavirus. Most small and medium-sized business operators will require the proactive assistance from your accountant/business advisors to guide you through these challenging times so as to ensure that your business is intact and able to operate efficiently when this crisis is over.   Read more: https://www.esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=252&Itemid=639

What sort of Small Business or Medium Sized Enterprise do you envisage operating or working at in 2020? Does your business have a “vision” for the next three to five years? Have discussions been held on the development of policies and strategies to assist in attracting outstanding people and retaining the good people that you already have?....   Read The Full Article Here

The good news on the equity capital scene for small businesses and medium sized enterprises continues with the Federal Treasurer Josh Frydenberg, confirming that the Federal Government’s election commitment relative to the establishment of the Australian Business Growth Fund official launch is imminent. This is great news for small businesses and medium sized enterprises because it will make it easier for these enterprises to access equity which will allow these companies to grow and employ more people. The Government has acknowledged that improved access to equity capital will reduce risks for small businesses and medium sized enterprises because it will reduce reliance on debt funding. The government anticipates that the Australian Business Growth Fund will approve equity investment in 30 to 50 companies annually.   Read the Full Article Here

Crowd Sourced Funding Equity Raising might be able to help your business. For the last twelve months private companies have been able to utilise the Crowd Sourced Funding Equity Raising sections within the Corporations Act to raise up to $5 million every twelve months from the public. By 31 October 2019, 55 companies had taken advantage of the amendments to the Corporations Act to raise $39.9 million shareholders capital direct from the public. Read full article: https://esssmallbusiness.com.au/index.php?option=com_zoo&task=item&item_id=249&Itemid=639

This is something to celebrate because the biggest change in financing arrangements for small businesses and medium-sized enterprises – private companies turned one on 19 October 2019. Crowd Sourced Funding Equity Raising could be of significant benefit for your company, if you meet the basic eligibility requirements: group turnover under $25 million annually group asset value under $25 million not registered on a Stock Exchange anywhere in the world Do you want to grow your business? Have you got a good business? Do you have a vision – energy – enthusiasm? If your business meets these characteristics, you could be able to raise up to $5 million in a 12 month period from the public... View The Full Article Here

“Attracting and keeping the right people is a key component of the life-cycle for most businesses” (Verne Harnish – Scaling Up) The other three essential components are: Creating a truly differentiated strategy (empowering SMEs047) Driving flawless execution (coming soon) Having plenty of cash to weather the storms (coming soon) Your accountant could assist you in identifying the characteristics of people who could assist your business to add value.  If your accountant is not available to assist you because of other work pressures you are invited to contact us and we will introduce you to an accountant/advisor who is able to assist you with this very important component of assistance on your business journey i.e assisting your business to create a “Talent Development Team.” Where do you start? Who is responsible for “Talent Development” in your organisation at present?   Read the Full Article Here

Does your business have a strategy that differentiates your business from your competitors? A “ Differential Strategy” is one of the key factors in creating a successful life cycle of a business. Have you talked to your accountant about assisting you to develop an update of your strategy and to make sure that your strategy has important differences incorporated which will differentiate your business from your competitors? Where do you start? Why not lock yourself away for a couple of hours of “quality time” and identify the key ideas that you have relative to the operation of your business.  The items that you are noting should cover the key aspects of your business including:....   READ THE FULL ARTICLE HERE

Have you ever had a critical look at the financial accounting information that your accountant is providing to you or that your accounting system is delivering to you? Do your Financial Accounts give you the information that you need to be able to effectively manage your business and add value to your business?...     READ THE FULL ARTICLE HERE

Recently a business operator wrote an article in “Accountant’s Daily” that pleaded with his accountant to provide a broader range of professional services not just taxation services. The small business person wrote “the truth is that while I’ve been patiently waiting for you to escape the compliance cubicle, I cannot hang around much longer.” “Over the years, I’ve sat through meeting after meeting with you about my tax returns. To be honest, I do this under sufferance – tax does not light me up!” “It is time to spell it out….Help me run a better business!” The writer then asked his accountant to meet with him quarterly with appointments set twelve months in advance – “know that I’ll look forward to our meetings and be interested in what you have to say...   READ THE FULL ARTICLE HERE  

The Crowd Sourced Funding Equity Raising Scorecard produced by ESS Small Business / ESS BIZTOOLS as at 31 July 2019 has identified that 31,141 investors have invested an average of $1,207 each in the 44 companies that have raised $37,586,246. (Click here to view the Scorecard) This uptake indicates that after a slow start Crowd Sourced Funding Equity Raising is starting to raise much needed capital for small businesses and medium-sized enterprises operating their businesses all over Australia.  Crowd Sourced Funding Equity Raising has been established in Australia following amendments to the Corporations Act by the Australian Government....     READ THE FULL ARTICLE HERE  

What is in it for a company? Ability to raise up to $5 million in a 12 month period direct from the public This is not a loan therefore: No loan application required No security required No personal guarantees required No monthly repayments of principal and interest required The company issues ordinary shares to the investors What does your client want to achieve for their company?....   READ THE FULL ARTICLE HERE

Accountants can assist companies to prepare the documentation that they will require: Business Plan Budgets/Cash Flow Forecast Customer analysis Identification of unique competitive advantage Business valuation to determine the number of shares to be offered and pricing Company directors and managers will benefit from advice on how Crowd Sourced Funding Equity Raising operates including:....     READ THE FULL ARTICLE HERE

Based on information contained within the Crowd Sourced Funding Intermediaries’ websites we have prepared the following scorecard as at 19 June 2019: Link to Crowd Sourced Funding Equity Raising Intermediary’s Scorecard Sample of business activities of companies which have raised capital include:...     READ THE FULL ARTICLE HERE

Companies need to have their “House in Order” - Andrew Geddes Chair of Greencross Ltd for 11 years (former ASX top 200 company) and a consultant to the Australian Accounting Industry for the last 30 years. “To raise capital SMEs have to go through all the disciplines of getting their “house in order” before investors will even consider supporting them, and in many ways that is a good thing.” “To put a Crowd Sourced Funding Offer Document together a company needs:....   READ THE FULL ARTICLE HERE

Crowd Sourced Funding Equity Raising is not the same as “Crowdfunding”. Crowd Sourced Funding Equity Raising is governed by the Australian Government’s “Corporations Act” which specifies strict legal requirements for the company to abide by. The company has to appoint an Intermediary from the businesses which have been appointed Crowd Sourced Funding Intermediaries by ASIC....     READ THE FULL ARTICLE HERE

When the then Australian Prime Minister, Malcolm Turnbull announced the Coalition Government’s Innovation Policy in December 2015 he indicated that two new types of corporate entities would be established. These entities were: Early Stage Innovation Company which required amendments to be made to the Income Tax Act Crowd Sourced Funding Equity Raising which required amendments to be made to the Corporations Act An Early Stage Innovation Company status can grant to eligible investors the opportunity to be able to claim a tax rebate on the value of their investment (subject to limitations) and these original investors may be entitled to avoid Capital Gains Tax on their initial investment in the company....     READ THE FULL ARTICLE HERE

Crowd Sourced Funding Equity Raising represents the biggest improvement in business financing for small businesses and medium sized enterprises in the last 35 years! Australia is playing catch up – Crowd Sourced Funding Equity Raising is already proven in overseas countries United Kingdom United States of America Canada New Zealand have had Crowd Sourced Funding Equity Raising (or its equivalent) for the last seven years.....   READ THE FULL ARTICLE HERE

Former public company director, Andrew Geddes, is hopeful the recent $3-million capital-raise by the women’s ride-sharing company, Shebah, will encourage more female-owned companies to begin using Crowd Sourced Funding Equity Raising for their growth capital. Mr Geddes, the former Chair of Greencross Limited, believes Crowd Sourced Funding is likely to become the preferred way for the small and medium sized business sector to raise capital in the near future. He claims the traditional alternatives of bank loans and angel investors often place stringent obligations on the company, its directors and loan guarantors that limit the potential for growth....   READ THE FULL ARTICLE HERE

Are you missing out on the capital on which your successful small or medium sized business needs to grow? There’s no real reason you should be, if you run a SME that meets the requirements for an all-new capital-raising process. Crowd Sourced Funding Equity Raising (CSF) has seen a rapid uptake amongst those companies, who have been first to market, since the process was legalized for small proprietary companies here in Australia back in October last year. More than $22M has already been raised as capital for small and medium sized businesses, in less than five months. That’s pretty remarkable, isn’t it? So, if your business is on the hunt for capital, Crowd Sourced Funding Equity Raising is a path that you and your accountant should seriously consider for your company.     READ THE FULL ARTICLE HERE  

Sounds great doesn’t it?  Would you like to be in this position? Already in Australia over $23.1 million has been raised by 27 companies since Crowd Sourced Funding Equity Raising was given the “green light” just 4 months ago. This change represents the biggest change in business finance for small and medium-sized businesses in the last 35 years. Crowd Sourced Funding Equity Raising offers a number of distinct advantages for your business/company. Why do I think Crowd Sourced Funding Equity Raising will receive a vote of thanks by the Australian small and medium-sized business sectors?   READ THE FULL ARTICLE HERE

So, you want to grow your business. What is it they say? If you’re standing still while others around you are moving forward, then you’re sliding backwards. Everything is relative and that applies to the growth of small and medium-sized businesses as well.     READ THE FULL ARTICLE HERE

Holidays at the beach in January. Starts you thinking, doesn’t it? You look in the mirror and you say to yourself “wouldn’t it be great to be able to relax like this all day, every day?” After all, you’ve put in 30 or so years of hard work. So, you start thinking about retirement, but, you own and operate a small or medium-sized business. That business has been good to you, but you’re now stuck with a lot of obligations, like bank guarantees, and you don’t know how you can slide out from under them. How can you cash up and retire with dignity? I’ll bet you’ve always thought that someone will come along and buy you out just when you we’re ready to ‘hang up your spurs’.     READ THE FULL ARTICLE HERE

How often do you have people telling you how lucky you are that you own your own business? If only they knew the half of it! Most small and medium sized businesses these days are heavily supported by bank loans or overdrafts. Then, there are always those times, when being in business feels like you’re living inside a pressure cooker.     READ THE FULL ARTICLE HERE

A recent report by the Australian government’s Small Business Ombudsman, Kate Carnell, indicated that more than 25% of small and medium enterprise loans are being funded by the parents of small and medium enterprise owners. The “Bank of Mum and Dad” is being forced to fund a significant amount of the loans to small and medium enterprises because of the credit crunch which has been worsened by the fallout from the Banking Royal Commission, Kate Carnell was reported as saying in a recent article in the “Financial Review”. (Click here). “Falling residential property prices are compelling the difficulty in borrowing, because most lenders require small and medium enterprise owners/shareholders to put up their houses as collateral”.     READ THE FULL ARTICLE HERE

A recent report by the Australian government’s Small Business Ombudsman, Kate Carnell, indicated that more than 25% of small and medium enterprise loans are being funded by the parents of small and medium enterprise owners. The “Bank of Mum and Dad” is being forced to fund a significant amount of the loans to small and medium enterprises because of the credit crunch which has been worsened by the fallout from the Banking Royal Commission, Kate Carnell was reported as saying in a recent article in the “Financial Review”. (Click here). “Falling residential property prices are compelling the difficulty in borrowing, because most lenders require small and medium enterprise owners/shareholders to put up their houses as collateral”.     READ THE FULL ARTICLE HERE  

Are you a naturally sceptical person? Most of us are a little, I guess, especially when we hear about new ideas involving access to money. Well, Crowd Sourced Funding Equity Raising isn’t a scam or a ‘get rich quick’ scheme, and it’s not ‘crowdfunding’ that we hear so much about on social media. 'Crowdfunding' is when people are asked to donate money to a worthy cause, like a family left destitute after their house burns down. It's a social media thing, and...  there have been problems. In the non-business world, people are able to utilise social media to assist in raising money for virtually any type of legitimate reason – there is virtually no government control.     READ THE FULL ARTICLE HERE

Doesn’t it really‘frost your cookies’  that medium-sized business always seems to get left out of the most important decisions? Well, as it turns out, the sector has finally scored a big win! Many medium-sized companies will be perfect candidates for a concept that’s going to revolutionise capital raising for Australian business and it’s already underway.     READ THE FULL ARTICLE HERE

Every so often, a new concept comes along that completely revolutionises the way we do things in small/medium enterprise businesses. This…….. is one of those times. As of now, Crowd Sourced Funding Equity Raising for Small Proprietary Companies (group turnover under $25 million per annum, group gross asset value under $25 million, not listed on a stock exchange anywhere in the world) is legal in Australia.

Why not join “Shark Tank’s” Dr Glen Richards and his team and former Greencross Limited Chair, Andrew Geddes to create your “Growth Plan for 2019 and Beyond” at the “Scaling up Masters” two day highly interactive workshop on 25/26 October?  Click Here.