Our client was developing a unique suspension product for Australian made conditions. His amazing product is to be used in American vintage cars here in Australia.
Whilst visiting our client at his factory we inquired about the rather sophisticated machine in the corner of his workshop. From our enquiry, we learnt about his invention. He was amazed and excited when we mentioned that there may be a grant from the Government to assist him with his work.
With his help, we prepared a comprehensive Research & Development plan together with the necessary registrations, so that our client obtained an R&D Grant exceeding $25,000.
The Grant was an unexpected bonus for our client and it was our interest and proactive approach that made it happen.
The client was ecstatic as the R&D Grant provided seeding capital to continue the project and ensured his dreams of completing the project came to fruition. We are now looking into this years, R&D Grant.
Our client runs a successful Drafting service. The business is growing, resulting in him not being able to keep up with the demand.
To meet this need additional help was required from both hands-on and technology. Fearing that he didn’t want to grow too fast and face cash-flow problems, “a game plan was needed”.
As his Accountant, we were able to assist him to review his options. Guidance was given to update his business plan and various scenarios were prepared to determine cash-flow and business growth.The outcome allowed our client to proceed confidently after a round table discussion of his options. We were also able to provide invaluable advice as to the most effective finance options.
Finally, under previous tax guidelines, small businesses could only instantly write off assets of up to $1000.
From the 1st July 2012, his business could maximise IT expenses and realise the tax benefits in the first year. Immediate write-off of $6000 each this also assisted in his decision. His Drafting business is flourishing!
Last month our client came to us asking for our opinion on pricing their suite of specialised products. Their concern was that they would lose customers and ultimately market share. Our brief was to help them to see how a price rise could be managed and still retain profitability in the business. Using historical information a financial model was produced, and both pricing increase models and volume sensitivity results were determined.
Based on working as a team with the client, the business increased the prices on some items. A new pricing policy was implemented and marketing plan devised to educate the customers. The outcome was amazing with proof that the right decisions had been made by the Sales Reports showing favourable increases well up on this time last year. With the right approach customers will accept price increases. Reducing prices helps no one and selling on price alone is not good business plan. We have both agreed to meet in 12 months time to reassess their pricing model.