By Samantha Freestone
Directors of Locmans Accountants and Business Advisers, Andrew Morgan and Kevin Leece, both have a great sense of humour.
But when it comes to setting up a small business, they are very serious … about structure.
The accountants and partners at Locmans have built a reputation for excellent small business accountancy advice.
Kevin says the most important thing new small business owners can do to support their own success, from the very beginning, is to decide on a business structure and to set things in place to protect assets.
“First and foremost you must ensure the structure is a good fit for your business model, whether a corporate structure, partnership or otherwise.
“This decision will help you as you grow,” he said.
“The other important thing to have in place is asset protection.
“Companies do not get discounts when they buy appreciating assets, so the structure you choose can help at tax time.”
Fellow director Andrew says a budget is mandatory for the success of small business.
“A budget must be in place and that budget needs to be reviewed on a monthly basis.
“A great function available in MYOB accounting software, with regards to budgeting, is that you can download your cash flow and budgets and export them into Excel.
“A lot of our clients prefer MYOB’s online accounting product as it enables them to liaise with us remotely, go over figures, and update cash flow figures remotely.
“MYOB enables you to create forecasting models which are imperative when applying for further finance.
“Cash flow projections … MYOB is very good with that and when accessing extra finance, this is the first thing the banks are looking for.”
Locmans Accountants and Business Advisors, 21 Synnot Street, Werribee. Inquiries: 9741 7555 or visit locmans.com.au