As the owner of your business, you should be looking for:
- Return on your labour, in the form of wages and superannuation contributions commensurate with the market value of the role you are performing in the business.
- Return ON your investment (ROI), in the form of profits and dividends.
- Return OF capital invested in your enterprise when the time comes to sell.
Whether you are in the exciting stages of planning your start-up or you are an experienced operator at the helm of an established business, making the right decision at the right time is essential.
Some people (even some accountants – not us!) think that the role of an accountant in advising business owners is only about formation of trusts and companies and registering for an ABN and filling out other forms for the government.
Whilst it is important to get things such as “forms for the government” right, that is only part of the story.
There is no point having all the forms filled out spic and span and then making hasty assumptions regarding other critical business issues.
Regardless of whether your business is already established or a new start-up, your discussions with your accountant should include addressing these important areas:
- Business Model
- Organisational Structure
- Cash Flow and Working Capital Planning
- Valuation of your business and how to increase value