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How SMEs are saving and making more money every day with CFO On Call

The team at CFO On Call are a bunch of brilliant, logical, commercially experienced people, who are constantly helping SMEs improve profit and cash flow.  Here are just some of the ways they have done this recently:

My client in the manufacturing industry assumed their ‘scrap’ to be 8% of raw materials, but this had never been measured.  I introduced two 13-week programs where ‘scrap’ was measured and transferred to their accounting system.  We discovered that their ‘scrap’ was actually running at 12%.  Prices were increased to reflect the extra percentage involved in ‘scrap’

Bottom line increase $180K – $200K

I advised a client to speak with their tax accountant before acquiring new plant and equipment on finance.  Where GST/BAS is on a cash basis GST claim of $40,000 would have been spread over 60 monthly payments.  Due to the selection of the correct finance, my client was able to claim the full $40,000 on their next BAS and pay out two smaller finance deals earlier than anticipated.

Over the previous two years a client has failed to pay staff superannuation.  They subsequently incurred penalties of $30,000 and loss of tax deductibility.  I am currently ensuring that this client is entering correctly the super and PAYG commitments, so that they are aware of what is due so that no further penalties are incurred.

On reviewing my client’s records I discovered that they had overstated their GST liability on four BAS returns.  Saving $25,000

I found errors in techniques used by my client to calculate Partners IAS instalments.  Application to ATO for reassessment resulted in $20,000 of overpaid tax instalments being returned.  Cost to client $150.  Benefit to client, immeasurable.  As this cash paid out had the potential to impact on the business’s short term solvency.

My client had poor bookkeeping procedures.  I fixed their accounts and trained the business owner on correct procedures to do his own record keeping accurately and I assist with regular visits.  Saving $20,000 for staff and stress levels.

Two of my clients have back dated depreciation claims for approximately $10,000.  This related to building depreciation and I alerted their Tax Accountant to claim the special deduction.

I set up an ‘Asset Manager’ system for my client. Thus allowing for accurate asset valuations and replacement cost etc.  Saved $14,500 via depreciation ‘write offs’.

Client had not been entering ‘Cash Purchases’ into MYOB (They did not know how).  Therefore they did not claim tax deduction on input tax credits.  Expense amounted to several thousand dollars.

I brought a client’s payroll system in house.  Saving client Bureau costs of $7,000 per annum.

I compared YTD GST reports with actual GST paid over three quarters and found that the client had inadvertently used accrual report instead of cash report for one quarter.  I found that client had overstated income and therefore paid too much GST. Estimated Saving $3,000.

I advised a client to change banks when bank increased fees by 100% – Saving $3,00 in bank charges.

My client was a sucker for staff talking them into buying software, which they didn’t really need.  I set up a software logging system that saved them thousands of dollars.

I recently helped a client that was not using the “Undeposited funds” feature in QuickBooks.  This saved them time – $50 a week or $2,600 per annum. 

A client was uncertain where he stood… is he making profit?  What is his cash flow situation? Getting his datafile in order and supplying him with meaningful reports will help us identify if his business will survive.

I reviewed one client’s GST reports.  He’d missed claiming input tax credits and was able to claim an additional $1,600.

Imagine what they could find for you?!