Aligning Business Structures
Now more than ever we need to ensure our capital and corporate structures are aligned, working smarter and delivering on ALL our goals and objectives.
In these rapidly changing times and circumstances not only do we need to build in flexibility and contingencies, but we also need the comfort and certainty that can come from fixed, locked-in long term arrangements. A business needs to determine what it can afford (or not afford), not to mention what is the optimum structure to ensure the business does not pay too much tax. Businesses also need to manage the risks that may come from left field, such as potential legal action, divorce amongst partners and family estate planning issues. Businesses of course want to continue to grow and maybe even bring in a new partner or buy a franchise, all of which needs planning, alignment and funding.
What’s the best approach? Firstly, talk to your accountant, analyse and develop the plan, identify the potential opportunities and risks, all before considering the finance aspect. Consider if you should deal directly with the banks, go through a broker or even consider a venture capitalist.
It is a lot to consider- so where do you start? The team here at Advivo can help, and remember to always, “Begin with the End in Mind”.
Accessing new capital can be a minefield and there are lots of aspects to consider, terms, repayments, interest rate, security requirements, guarantees and covenants to name a few. Further to this the market is constantly evolving and innovating with new products and changing terms and conditions. We cannot possibly overview all the options here and it is such a personalised process depending on your circumstances, objectives and affordability.
That is why when assessing the right financing and capital structure for your business, especially when many of the items above may have competing interests, a robust financial forecast is the starting point of the analysis and assessing the options to ensure they align with your affordability, goals and objectives. Not only are the business circumstances a consideration, but so too will each business and the business owners involved, have different wants, needs, risks, capacity issues and future aspirations to take in to account, which can often get conflicted with guarantees.
In this month’s newsletter we aim to highlight the benefits of aligning all your structures so as to protect your business and personal assets, manage your risks and optimise your taxation position. Don’t forget the importance of a strong relationship with your financier and what to consider when looking at new funding or restructuring your current capital; it goes without saying, alignment with your objectives, cash flows, risk profile and corporate structure is imperative.
Our team is here to help you navigate through these interesting and ever-changing times that we are finding ourselves in, to ensure your business continues to prosper.
Sincerely
Leon Stephan
Managing Partner
Events
Innovation in Accounting and Business Planning – Event Highlights
Thank you to everyone for tuning in, participating and asking insightful questions to our panel experts at our second Lunch & Learn online event.
Read further insights from the event HERE.
What is capital restructuring and why do you need it?
Advivo explain why taking the time to get the right structure is important to achieve long term objectives, while operating more efficiently maintaining business continuity.
Click here to find out more.
The importance of a strong relationship with your financier
Never underestimate the importance of keeping your existing financier happy. Advivo explain how to ensure you get the financial support you need.
Read the full blog here.
Grow your business with financial modelling
In today’s unpredictable economic climate, Advivo show how financial modelling can be used to ensure a business’s success and profitability.
Read more here.
Are your assets properly protected?
Advivo explain why protecting assets against creditors and predators is becoming the most common concern among business owners.
Read how to properly protect your assets.
Advivo’s Charity of the Month!
Advivo’s commitment to the community includes our monthly charitable donation! Last month we donated to Canteen. A great charity helping young people cope with cancer in their family.
Have your say – HERE, to help us choose a local charity to support and we will announce the winner in next month’s newsletter
Don’t forget if you would like us to include a charity of your choice, just drop us a line at info@advivo.com.au
Key Events / Dates:
- 21 September – Lodge and pay August 2020 monthly business activity statement
- 30 September – Lodge PAYG withholding payment summary annual report if prepared by a BAS or tax agent:
- If a payer has only closely held payees and their tax agent helps prepare their report, they may be eligible for a concession to lodge this report by the due date of their tax return
- 30 September – Lodge Annual TFN withholding report 2020 if a trustee of a closely held trust has been required to withhold amounts from payments to beneficiaries
Recent Updates:
Temporary insolvency protections to be extended to 31 December 2020
- The Government will continue to help businesses successfully adapt and restructure so that they can bounce back on the other side of this crisis. If you’re having trouble collecting money from debtors more information can be found here.