Cashflow issues are one of the biggest reasons many businesses fail. When it comes to business planning, forecasting your cash requirements is essential, and possibly more important than your profitability.

If your business is only new, or you are already struggling with cash flow, the team at Ashok Parekh & Co can assist with developing a strategy to improve your bottom line. Our team of professional and experienced accountants can assist with identifying potential future issues, provide reports and help you understand when and where your cash is available. We can also assist in preparing and planning for taxes, stock control, key expense analysis and for those businesses looking to expand.

Why is a Good Cashflow Important?

Your cashflow is what keeps your business open. While it may sometimes seem like your money is going one way only – out – unless you don’t have any customers or clients, that is unlikely. Cashflow is extremely important for small businesses, start-ups and for those businesses who operate on seasonal business.

For businesses just starting out, there are a lot of expenses and generally not a lot of income. You may need to input personal funds into the business or obtain a temporary line of credit to get your business up and running.

Seasonal businesses, such as those who benefit from summer tourists, need to have a good cashflow to deal with the fluctuations of income throughout the year. Managing your cashflow in this type of business can be difficult, but with careful planning, it can certainly be done.

Small businesses often face cashflow issues. Expenses need to be paid, but your clients haven’t yet paid, leaving your business short on funds. It is essential to prepare and plan for times when you may be waiting for income but have high expenses.

One of the best tools to assist with positive cashflow is a great budget. A budget helps you know what recurring expenses you have, set your financial goals, measure your business’ performance and see where you have free cash for other expenses.

For small business owners, your budget doesn’t need to be extensive. As long as you can tell where your money is being spent, and where you are earning your money from, you have the basis of a good budget.

If you’ve never done a budget for your business, or tracked your cash flow, our experienced team can assist. We can help you analyse your current and future cash flows, and help you set up a budget that works for you.

Ensure your future success by booking an appointment with one of our friendly and experienced accountants.

Speak to us to book your appointment today (08) 6168 2448 or Book Online Now

Asset Protection

If you have assets in your own name, whether that be your home or a business, it’s time to look into asset protection. We find that often people think you need to be wealthy to have asset protection in Mandurah, but if you were hit with a lawsuit, the fewer assets you have, the easier it may be to lose them. Bankruptcy may be your only option, and that’s not a road we recommend.

Even if you feel you don’t have enough assets to worry about, it’s never too early to look into protecting them. In fact, earlier is better when it comes to asset protection. Leaving the structing of your assets too late, if there has been a significant increase in value, you may find yourself needing to pay capital gains tax and stamp duty.

Trusts for Asset Protection

When structuring the protection of assets such as homes and businesses, it is typically done via a trust. There are several different types of trusts which are suitable for a variety of needs.

 Discretionary Family Trust – These trusts tend to be established to help manage and protect family assets. These assets may include shares, personal property and business assets that are passed from family member to family member.

Testamentary Trust – This type of trust is generally established from the instructions left if a will. This means that the trust does not actually exist until the person who set up the trust passes away. Essentially, any assets are help in a trust for the beneficiaries and then distributed as per the conditions of the will.

Special Disability Trust – If you’ve got vulnerable or disabled members of your family that you’d like to protect in the future, a Special Disability Trust can provide for their future care, accommodation and other needs.

Family Lineage Trust – A Family Lineage Trust allows you to keep money and assets within your family, protecting any inheritance from seizure during a divorce, separation or bankruptcy claim. This type of trust allows you to protect your children and grandchildren from capital gains taxes and stamp duty payments in relation to the assets in the trust.

Business Trust – If you own a business, there are various options to protecting and managing assets where they can’t be taken in a lawsuit. Looking to separate your personal assets from your business assets? This may be the type of trust account you need.

Setting up a trust account isn’t a complicated process, but it does require knowledge about which trust account is more suitable for an individual’s circumstance. At Ashok Parekh & Co, we find our clients are worried about the cost of implementing asset protection. In many cases, setting up the structure to protect your assets is relatively inexpensive – and it’s much more inexpensive than the legal fees that come with defending yourself and your assets in court.

Considering asset protection? Have a chat to the team at Ashok Parekh & Co in Mandurah. We’ll help you safeguard your assets in the event of a lawsuit.

Book an appointment to speak to one of our professional and experienced accountants on (08) 6168 2448, or book online now.

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