Written By Braden Whelpdale

Case study: Empowering a Small Self-Managed Agency for Success

In the fast-paced world of entrepreneurship, every decision counts. For a small, self-managed agency facing pivotal choices in its business journey, navigating through challenges required more than just expertise—it demanded a strategic partner capable of providing tailored financial solutions.

Client Challenges:

  • Business Structure Dilemma: The client needed expert guidance to determine the most suitable business structure—sole trader or company.

  • Establishing Legal Foundations: required assistance in setting up an Australian Company Number (ACN) and an Australian Business Number (ABN) to legitimise their business operations. 

  • Understanding their reporting obligations with GST and PAYGW. 

  • Understanding director duties

  • Robust Bookkeeping and Compliance: To set the agency up for success, comprehensive bookkeeping support was necessary, including managing expenses, leveraging tools like Dext, ongoing company expenses, Business Activity Statements (BAS), superannuation contributions, PAYG (Pay As You Go), and tax compliance.

  • Wage Modeling for Tax Efficiency: The client was eager to optimise their wage structure to ensure tax efficiency and better tax outcomes.

  • Effective Cashflow Management: To guarantee financial stability, they required cashflow management expertise and assistance with budgeting.

  • CFO-Level Support: As a solo entrepreneur, the client relied heavily on expert guidance to make informed decisions that would support the longevity and scalability of the agency

  • Personal Accounting: In addition to business needs, they sought assistance with their personal tax return and how this changes depending on the what business structure was chosen

.

Our Solution:

Our dedicated team of \Accountants

 stepped in to address the client's unique challenges, providing a tailored strategy:

  1. Business Structure Evaluation:

    • We conducted an in-depth analysis of the client's business goals, risk and growth aspirations. After careful consideration, we recommended establishing a  company to provide better asset protection, tax optimisation with a lower tax rate and future scalability

  2. ACN and ABN Setup:

    • We facilitated the swift setup of an ACN and ABN, ensuring that the agency operated within legal parameters and allowing them to commence business activities promptly.Registered for GST and PAYGW. 

  3. Comprehensive Bookkeeping and Compliance:

    • Our team implemented a rigorous bookkeeping system that included meticulous record-keeping of daily expenses. We utilised Dext, a powerful tool, to streamline expense management. Furthermore, we took charge of ongoing company expenses, BAS lodgments, superannuation contributions, PAYG compliance, and tax reporting, ensuring that the agency was fully compliant with regulatory requirements. Ensuring all back-of-house accounting and cashflow management was taken care of to allow the client to focus on what they do best. 

  4.  Wage Modeling for Tax Efficiency:

    • We developed a customised wage model that balanced the client's income as an agency owner, optimising tax efficiency and enabling them to maximise their after-tax income.

  5. Cashflow Management and Budgeting:

    • We introduced effective cashflow management practices, empowering the client to proactively address financial challenges and allocate resources wisely through a well-structured budgeting plan.

  6.  CFO-Level Support:

    • Our team served as the client's virtual Chief Financial Officer (CFO), providing expert guidance on critical decisions, financial strategies, and scalability plans. The client could rely on our expertise to make well-informed choices to support their agency's future growth.

  7. Personal Accounting:

    • In addition to our business-focused services, we provided personalised tax planning to help the client minimise tax, ensuring their financial well-being beyond their agency's success.

Results and Impact:

Our strategic financial solutions played a pivotal role in the client's journey, leading to remarkable results:

  • The agency achieved substantial growth and stability.

  • The establishment of a company structure provided legal protection and credibility.

  • Robust bookkeeping and compliance measures ensured regulatory adherence.

  • Optimal wage modelling enhanced tax efficiency.

  • Effective cash flow management and budgeting fortified financial stability.

  • The client benefited from CFO-level guidance for informed decision-making.

  • Personalised tax planning minimised both business and personal tax.

With our unwavering support, the agency not only thrived but expanded. As they envision scaling their business further, they continue to rely on our expertise to navigate the financial complexities of entrepreneurship.

Braden Whelpdale
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