From The Oscars to Graduate Recruitment Videos

https://www.youtube.com/watch?v=0zlEFTgk1tg

Within days of each other accountants have been in the ‘spotlight’ for getting laughs….. but not for the right reasons. First, the mix-up with an Oscars envelope for ‘Best Picture’ now termed envelopegate. Second, an ‘excruciating’ recruitment video from the Australian Department of Finance to attract graduates. So how are accountants viewed?

Trust is key

While we do have our moments, generally accountants are viewed as one of the most trusted professions. In fact we have been consistently ranked 11th in the Roy Morgan’s Annual Image of Professions Survey. Deloittes was ranked number one to work by graduates by GradConnections. But the accounting profession has been undergoing significant change.

Meeting client growing needs

Accounting firms are now calling themselves ‘consulting’ firms and their accountants now referred to as consultants. Why? Because the profession is now becoming a more broad service provider to business. No longer are we just ‘number crunchers’ and ‘bean counters’ preparing tax returns and financial statements. Our services have gone further into providing advice and information to business managers. This allows business managers to make more informed decisions. Technology now extends into providing information technology services in accounting. For larger firms they are becoming ‘one stop shop’ business service providers to business. This has seen them competing with consulting firms as McKinsey & Co, Bain & Co, Boston Consulting Group.

Remaining relevant with customers

Bookkeepers and management accountants are no different. With the introduction of Goods and Services Tax in Australia, the role of bookkeepers has become important. Our role with owners and management has become more intimate. Business is becoming more technology based through transactions, e-commerce, online banking, cloud accounting and many addon features. Our knowledge, skill and experience is critical to success. It’s becoming necessary for business to keep up with competitors. Remaining relevant with customer technology needs is required by business.

Technology key to innovation

To demonstrate how technology influences business, let’s look at some of the best performing USA stocks in the last 20 years. We see Facebook, Amazon, Microsoft, Google and Apple. Watching Sky News “Smart Money”, Xero Managing Director Trent Innes identified the cost benefits to business using cloud based technology, allowing remote access to their business on mobile devices as smartphones and tablets. This allows business success through innovation and improved cashflow management. This is followed by CEO Simon Griffith from Who Gives a Crap, an online social enterprise. Their purpose is to build toilets for those in need by selling 100% recycled paper cleaning products online. They use tehnology to streamline their logistics and warehousing to minimise costs.

We’re human, but we’re needed

So yes, accountants or consultants are human. It is what makes the profession one of the most trusted and sought after. Our work is wide and varied as our clients needs change and evolve. Management accountants are sought for our intimate understanding of our clients. This allows us to provide insights they could not achieve on their own. Our role is no longer bean counting. It’s now advising and using technology to allow business owners and managers to make more informed decisions. Technology is now a growing part of the service provision for clients. Innovation is essential to for businesses to remain relevant with their customers, now and in the future.

 

Why Foley Business Management is relevant to your business

Our purpose is to build sustainable communities and to create a better world for our childrens’ children.

This is why we take a holistic approach to our clients, not just preparing financial statements and leaving it to the client to work out on their own. We provide financial management solutions to small businesses, not for profits and social enterprise so they can make informed decisions. For many people, owning a business is a big step. One that will affect you, your family and your community.

If you would like to speak to one of our consultants for a free 30 minute consultation, please contact us to organise a time that is convenient. A business can be a rewarding experience for you, your family and your community! Let’s make sure you do it the right way.

10 Things to make your hobby a business

Many businesses have started from humble beginnings as a hobby. The hobby expands as word spreads. You have to decide whether to keep your hobby as just that, a hobby you do in your spare time, or you look to develop it into a business.

“If you do what you love, you will never work a day in your life.”

Here are 10 things to make your hobby a business

  1. ‘Failing to plan is planning to fail!’

    Starting the conversation with someone, such as your accountant or business consultant, is an important step. Preparing for the transition is important!

  2. Legal structure.

    Will your business be a sole trader, partnership, company, trust or joint venture? These are the different possible legal structures your business will be set up in. Don’t rush to your solicitor for this straight away until you have spoken with your accountant.

  3. Register a business name.

    You need to decide on your business name. But more importantly, you need to register it.

  4. Get an Australian Business Number or ABN.

    This is done after you decide what legal structure your business will be and its business name, though you can add the business name later if you wish.

  5. Take out insurance.

    A given for nearly every business will be insurances. Getting the right insurances is important to cover you and others. Speaking to an Insurance broker will identify the insurance types you will need.

  6. Legal contracts.

    For consultants and service providers you may need contracts with clients. Providers of goods may require terms and conditions of sale. These can be in many forms, but they maybe the difference between a good and bad outcome for you and your customers.

  7. Funding your first year.

    You will need to look at what your ability is to fund the business. This can come in various forms as self funded ie from your own money, borrowed from family and friends, or taking out a loan from a loan provider. Knowing how much you will need is important. What’s more important is going in big and borrowing more than you can repay. Many start-ups in technology financed their beginnings with student loans and credit cards.

  8. Marketing.

    This can range from a logo, business cards, social media, email and websites. With many businesses needing to have an online presence, getting it right can be critical to your success! Having an online business also means you may be selling your products online. This also requires someone to look at your accounting package for linking to your online account.

  9. Bookkeeping.

    You will need to have some type of book keeping in place to record your income and expenses. It is also a requirement that you issue your clients a tax invoice for sales. This might be a simple set up as an exercise book and a receipt book from the local stationery shop. But having a good small business accounting package can help you manage this. Speak to an experienced bookkeeper to know which one is best for you and your business.

  10. Budget.

    With many of what we have just talked about, you will need a budget of how much everything is going to cost and how much you need to be making before you can quit your day job. Getting this wrong could be a costly mistake. Sitting down with someone who understands you and your business and who has experience in preparing budgets is critical to your success.

  11. BONUS: Don’t quit your day job.

    Seriously, until you’re confident the business can fund your personal needs, don’t quit your job. Try to work on your business outside of your employed work hours and build it from there.

Why does Foley Business Management want you to know this? Well our purpose is to build sustainable communities and to create a better world for our childrens’ children. Many businesses fail in their first year, causing immense pressure on those involved. Knowing whether to start a business is the right thing to do for all involved. This is why we take a holistic approach to our clients, not just preparing financial statements and leaving it to the client to work out on their own. We provide financial management solutions to small businesses, not for profits and social enterprise so they can make informed decisions. For many people, going into business is a big step. One that will affect you, your family and your community.

If you would like to speak to one of our consultants for a free 30 minute consultation, please contact us to organise a time that is convenient. Taking your from a hobby to a business can be a rewarding experience for you, your family and your community! Let’s make sure you do it the right way.

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