Guide growth

Business Lighthouse provides innovative solutions, with a client-centred approach, to help build local businesses into a force for social good. Yes there is a lot in that sentence. We understand that compliance is necessary however it is only one part of what we do to support businesses. We understand the importance of solid processes and systems to strengthen operations as well as the need to support your business strategy through comprehensive financial forecasting.

Tax (Income Tax), planning is the process of 1. Firstly estimating the likely income and expenses and thus net taxable profit for the selected period (such as financial year-end), and the resultant tax liability of your business or organization. 2. Secondly providing some options or action points to complete before the end of the period to help minimize your tax burden and/ or just as importantly to give clarity around the likely size and timing of the payment of the tax liability. This information most critically gives you the business owner good visibility over the timing of cash outflows from your business/organsiation providing additional rigor in your financial management process.. Tax planning can also include planning around other key liabilities such as GST and Payroll obligations as these can often be larger than income tax liabilities.

Organisations that carry inventory have more complex accounting requirements and need robust systems that account for stock on hand, stock in transit, prepaid stock, cost of goods sold, customer prepayments to name a few. They also need operational information such as production or procurement planning and warehouse solutions, And this is just for B2C (Business to Customer) business models. If you add Business to Business ie Wholesale- it can become even more complex). There are great systems that are available to small - medium sized businesses to handle the accounting and the processes. Learning to use them effectively and therefore access the right information is the key.

Passionate business owners often carry a wealth of knowledge in their minds, meaning their business success depends on their heavy involvement. When it comes time for growth, increased freedom from the daily activities, or even a complete exit, the business needs proper processes and systems. Effectively Identifying, sourcing the right software solutions and setting up the processes is a medium to long term project that requires expertise, foresight and planning and is easy to delay until it's too late. However, if this work is done effectively, it adds enormous value to the businesses sale value.

Corporate governance is the system by which organizations are directed and controlled. It is a system that is removed (or at least should be!), from the ‘nuts and bolts’ of running an organization or business. This is the role of management. The business environment is increasingly complicated with increasing regulatory and compliance obligations on business owners and Directors. Directors are increasingly responsible for an organization's activities that must operate within society’s framework and meet the expectations and ethical standards of that society. As well as their compliance responsibilities, Directors are responsible for the organization’s business performance and impact across wider stakeholders. Proper governance provides valuable and essential high-level oversight and guidance on an organization's operations, strategy, risk management, and culture. It is governance that helps ensure organizational success, adding value to all stakeholders and not just shareholders. It is about the long term, not just 'short-termism'! There is no question that proper governance contributes to better organizations and businesses and thus a better society.

DGR means an entity is able to provide receipts for donors’ tax deductibility which is often critical to successful fundraising efforts. Applications for DGR status are made to, and approval is granted by, the ATO. However, the application process is complicated by other regulatory bodies such as ASIC, Consumer Affairs or (other Australian state compliance bodies) and ACNC (Australian Charity and Not-for-profit commission). In order to satisfy the ATO, the criteria for all relevant bodies need to be satisfied and the organisation needs to be compliant across all regulatory bodies individually. In addition, there needs to be alignment and consistent information provided registrations of all bodies relevant to the organisation. Matters that need to be highly considered include: members, the constitution, organisations purpose and main activities amongst other complex issues such as correspondence with ATO regarding the application.