Reporting

Objective management information

The lack of reliable and timely management information creates many problems. We attribute, at least in part, the tendency to make decisions on an ad-hoc basis to a general lack of good management information. If the numbers are not at your disposal, be they financial or non-financial, then you have little choice but to make decisions based on instinct.

Contributing to this issue can be the unreliability of monthly management information, leading to managers disregarding early warning signs of problems in profitability and liquidity.

Management is moving from an art to a science. The ongoing computerisation of all business systems provides more data for informed decision making. If you have the facts, most business decisions become logical. The basis of decisions move from instinct to logic if, and it is a big ‘if’ for small and medium businesses, the right information is available.

We provide accurate, objective and timely monthly management reports. Depending on your needs these can be consolidated, departmental or product line formats.

Taxation and statutory obligations

RSM Bird Cameron can help you manage your accounting function by completing all the statutory obligations of your business. We have the right mix of skills and experience to help you achieve your short and long term business goals.

In today’s corporate tax environment, failure to comply and manage tax obligations could result in unexpected penalties and additional tax. That’s why we never understate the importance of these obligations and the deadlines that come with them.

International companies on the other hand need more than just local compliance assistance - they require multi-jurisdictional assistance. At RSM Bird Cameron, together with our RSM Internaional network, we can manage these multi-national compliance requirements in a co-ordinated manner.

We offer an extensive selection of accounting, payroll, analysis and review, and establishment and compliance functions to support your business, including:

• Business Activity Statements (BAS)
• Instalment Activity Statements (IAS)
• Income tax returns
• Employment registrations, payroll processing and payroll tax returns
• Workers’ compensation
• Fringe Benefit Tax (FBT) Returns
• Financial statements in accordance with Australian Accounting Standards
• Lodgement and payment of federal and state taxes including income, goods and services, payroll, stamp duty, land tax and workcover insurance
• Cash flow management

Cash flow is the lifeblood of your business and a primary indicator of business health. The effects of cash flow are real and immediate and for this reason cash needs to be carefully managed.

Many businesses do not manage their cash as well as they could. Those that have borderline profitability have little choice and ‘squeeze the lemon’ pretty well. Others get enough cash out to meet their needs but could improve cash flow and invest back into the business or increase their dividend flows. There may be cash in the bank, but if working capital is not well managed, money will be under-utilised.

Good business management involves optimising your cash flow and managing your cash reserves to best effect.

Lack of cash flow creates several undesirable consequences. If a business does not have enough cash it cannot fund activities and this restricts future growth. Being chased over unpaid bills is not pleasant for you and not beneficial to your company’s reputation. In extreme situations it can lead to insolvency of the business which is a humbling experience; the owner loses control of their business, and it can be terminal. Worse still, when individuals have guaranteed debt, personal bankruptcy can be enforced.

Most people only realise they have cash flow problems when the problem occurs. Unfortunately, by then, many of the options available to fix the problem are no longer available.

The biggest enemy we see when businesses have liquidity problems is time – they simply don’t have the time to trade their way out of the problem.

For this reason, a system to pick up on the early warning signs is absolutely critical. There is a real need to develop relevant KPIs around liquidity to inform business owners what is happening, as it happens. There are key ratios to maintain for levels of inventory, days receivable, accounts payable, and ratios between various assets, liabilities and investments. Every business should have a simple, reliable and effective early warning system for cash flow.

Cash flow is the life blood of a business and without it a business simply grinds to a halt. Cash however is not profit and separate KPIs are needed to measure and forecast cash flows. There are many ways a business can improve the way it manages its liquidity and cash flow and, like other business processes, this area needs constant attention. It is one area of the business you cannot afford to ignore.

We provide regular cashflow reporting to:

• Optimise cashflow
• Identify warning signs
• Maximise liquidity