THE CLIENT

Our client is Managing Director of a firm in the engineering industry, with offices nationally. He also owns a property investment partnership.

THE CHALLENGE

In 2016, our client came under the scrutiny of the Australian Tax Office (ATO) through no fault of his own – as a result of poor advice by his previous accountant. The client required a new firm to manage and finalise a very complex tax audit process, negotiate with the ATO and achieve the best possible outcome for him.

WHAT THE CLIENT SAYS:

“Living though an ATO tax audit for two-and-a-half years was incredibly stressful. I had a lot of anxiety around the outcome, it felt like a bottomless pit of money and took up hours of my time each day. It was a major distraction from my commercial activities.”

“I chose Kreston Stanley Williamson to take over the final stages of the audit because I was comfortable that they had the resources and expertise to resolve my tax issues. Just as importantly, I was confident they could support me and my diverse business interests in the long-term as my new accountant.”

“They immediately took over negotiations with the Australian Tax Office, and recommended and managed an excellent, specialist tax lawyer too. They had a good understanding of the issues, the objectives of the ATO and they took confrontation away from the process. And they were completely dedicated to achieving the right outcome for me, resolving the issues quickly.”

“The outcome was better than I had expected.  I ended up paying far less than might otherwise have been the case.”

“It was a massive relief. My positivity had taken a beating during the tax audit – I finally felt energy return to my life. Most importantly it put the audit distraction behind me so as I could again focus on my family and commercial activities – the things that I care about and that really matter.”

“Since then, Kreston Stanley Williamson have become my trusted advisors. They help me with everything from my statutory obligations to company acquisitions, setting up new companies, reporting on my many businesses, and of course tax advice.”

“I was impressed with how quickly they got a handle on all my commercial affairs, which I’d been worried about. And they really understand what’s important to me, namely meeting my statutory obligations with the confidence I am doing the right thing, not pushing boundaries, and making sure that my interests are protected.”

“They are meticulous about detail and often pick up things I’d never see. For example, there were some shares I thought I’d sold which appeared on my balance sheet. Instead of writing those shares off, they investigated and discovered I still own them.”

“This high level of service is consistent. I enjoy working with Kreston Stanley Williamson and feel like I’m in very safe hands.”

THE CLIENT 

Our client is a furniture importer, who was referred to us had been previously receiving minimum accounting services from his provider. Let’s call this client Steve.

THE CHALLENGE 

Steve’s lawyer, a client of ours, recognised that Steve was struggling with some of the financial aspects within his business and recommended he make contact with us. Steve was looking for an accountant who would get actively involved in his business, understand his business and the challenges it faced.

THE SOLUTION 

We visited Steve’s premises a number of times in the initial period, so that we could fully understand his business and the systems that were used to operate it. This included reviewing stock systems, stock pricing, stock control and valuations, as well as the IT system and the way Steve’s firm dealt with foreign currency issues.

Our review identified that Steve’s company’s systems and processes needed significant improvement. We also identified a number of potential shareholding issues, and several limitations in the way Steve’s business was structured.

We provided Steve with a full report on the problems that existed within the business and recommendations on how to solve them. This report also detailed the steps that would need to be taken, and a timeline for completion.

THE RESULTS

By taking the time to make multiple visits to Steve’s premises, we were able to fully grasp the situation, and the obstacles and opportunities that existed. This meant that we could quickly identify solutions that would overcome several pressing problems, and provide advice that was specifically tailored to address Steve’s needs.

By proactively dealing with problem areas, such as business structuring and the class of shares held by shareholders, Steve will be able to avoid significant financial and organisational difficulties down the track.

Now, a number of years later, the business is going from strength to strength, and Steve does not have to worry about anything except running the business.

THE CLIENT

Our client is a healthcare professional and was referred to us, as they felt that they needed more ongoing support from their accountant than just the year-end reporting. Let’s call this client Dave.

THE CHALLENGE 

Dave wanted the ability to be able to manage his business with greater certainty and precision.

THE SOLUTION 

We introduced a full management accounting service to assist Dave and we identified the type of information that would serve as an accurate predictor and measure of his business performance.

Together we developed a number of customised and relevant Key Performance Indicators (KPIs), cashflows and budgets.

We also introduced the discipline of holding a quarterly meeting, at which we would collectively review any cashflow or budget variances, assess KPIs and determine if any corrective measures were needed.

THE RESULTS

Dave feels reassured about the activities and direction of his business as a result of having clear benchmarks to measure progress.

He is equipped with meaningful and up-to-date data, and is in a better position to make business decisions.

By having regular meetings with us, Dave also benefits by using us as an ongoing sounding board to plan the future development of his business.

Now a couple of years later, the business is more profitable than ever. Any decisions that need making can be made in a timely manner, and because of this Dave has never been in more control.

THE CLIENT

Our client works in the IT industry. Let’s call him John. John’s business had a turnover of $7m and had 20 staff. John had been in business for many years and had planned on making some significant changes to his business in the next few years.

THE CHALLENGE

John’s previous accountant only offered year-end financial reporting, and he felt that he needed advice that was more proactive, so that his business could be better prepared and could capitalise on the developments that were underway.

THE SOLUTION

We began by conducting a complete business health check, needs analysis and structural review. We found that two companies had been established for John many years before, and this arrangement had never been revisited to determine whether the structure was still appropriate for him.

Since John intended to sell one of the businesses in the next few years, we recommended a restructuring of both companies, which allowed better asset protection while also simplifying and streamlining the group. It also helped to reduce the capital gains tax liability on the eventual sale.

There were also problems with the class of shares that had been issued to shareholders of the company, who in this case were also employees. This posed a significant risk to the business and we advised on the steps that needed to be taken to rectify the problem. We reviewed succession planning principles with John, so he could begin putting into place a strategy to assist others to step up to leadership and ownership roles when required.

We undertook risk and estate planning with John to safeguard his assets and to prepare for the future. We identified a number of ways John could legitimately minimise tax and set out a schedule so that he would know the amount of tax due and likely due dates.

We also documented a step-by-step strategy of all the actions that were required so it was clear who was responsible for what, and when it needed to be completed by.

Finally, we completed all compliance work including end of year accounts and tax returns.

THE RESULTS

As a result of our comprehensive business review and our strategy planning, John was prepared for the eventual sale of the business. With our detailed planning, we were able to access the CGT Small Business Concessions and save over a million dollars in tax.

John is well on his way to a successful retirement with plenty of funds to be able to live comfortably and enjoy his passions for boats and cars.

Get the advice you need on both Australian and international tax matters, from our tax experts. With a proactive approach to your tax affairs, we help you implement effective and optimised tax strategies from the early days of your business.

 

THE CLIENT

Our client is an internationally-known brand in the beauty industry.

THE CHALLENGE

While this company is headquartered in the United States, their parent company is still based in Australia – and they have a growing presence in Europe and Asia as well.

They require an Australian firm with extensive international reach to audit their operations in America and sign off on their global accounts. And they need an accounting firm that can understand the complexities of a client turning over tens of millions of dollars all over the world.

WHAT WE DID:

As members of Kreston International – the world’s 13^th largest network of accounting firms – we have close relationships with our network member firms throughout Europe, Scandinavia, Asia and the US. Kreston is also a member of the exclusive Forum of Firms, qualifying us to perform transnational audits.

So we are able to coordinate our client’s international audits each year, giving them one convenient point of contact.

Before Coronavirus, senior members of our auditing team travelled to the US twice a year to audit our client’s American operations in person. Other firms sometimes send junior people – our approach is to have the best people on the ground to resolve any issues faster.

While travel restrictions apply, we use sophisticated technology to audit the company virtually, including counting stock in their warehouses, which is tricky! Again, we’re able to call on our American counterpart, CBIZ, to support us on the ground.

We’ve also provided comprehensive advice on tax and advisory issues, how to make their financial systems more robust, how to structure their contracts and even helped them value the company. This is, of course, with appropriate safeguards in place to maintain auditor independence.

This is a fast-evolving, global business so we’re keen to always add value.

WHAT THE CLIENT SAYS:

“We’ve just been through a corporate restructuring, which is an enormous project. We also have very aggressive growth plans for the next five years. Kreston Stanley Williamson has been an invaluable, objective source of advice on how to change the way we operate and be efficient from a tax perspective.

“In fact, we frequently talk to them about our business decisions, from structuring future acquisitions to liquidation of companies. When you’re closely involved there are lots of emotions involved, and they take all the emotion out of it. They are a very trusted advisor.

“One of the most useful things about working with Kreston Stanley Williamson is their international reach. Their Kreston partners currently do the audits for all our companies across the globe. When you have a disjointed audit team it can be very difficult. It’s far more efficient to deal with one firm, and it makes working much easier.

“Recently we had Kamal and one of the European Kreston firms on the same call. It’s not often you can have those discussions so freely if you’re using separate firms.

“They’re able to provide the quality of work of a Big 4 firm, but are a lot more personable, approachable and flexible in how they work. Case in point: Kamal and his team used to come to America to conduct our audits in person, but when COVID happened, they audited us digitally at short notice. It wasn’t easy to do, but it shows their flexibility.

“Working internationally has never been a barrier – they’re happy to jump on calls at different hours of the day. They are a great group of people to work with, and we’re excited to have them as our partner for the future.”

 

THE CLIENT

A well-respected accounting firm. They’ve been going for more than 35 years and have their own 30-strong team, based in Sydney.

THE CHALLENGE

The client provides specialist tax advice for businesses. To do this correctly, they often need to know how much the company is worth. Valuations are a complex, specialist service, which they don’t provide themselves.

WHAT WE DID:

“A good valuation must be reliable and technically competent, but also simple enough for both the client and advisor to understand, and get the information they need,” says our audit partner Kamal Thakkar. “That’s hard to do, and it can be very costly.

“So we simplified the process. The report meets all the regulatory requirements. We apply commercial sense, focusing on getting answers to their most pressing questions.

“Valuation reports can be lengthy, complex documents – but ours are succinct and easier to follow. This allows us to provide a tailored solution each time, but in a cost-effective way.”

WHAT THE CLIENT SAYS:

“Kamal is unique, because he understands our SME market and complex transactions. He can take all the clever stuff – the principles, models and legislation – and apply it to our market, giving us the practical information we need to advise our own clients.

“That’s just the kind of commercial, efficient approach we were looking for. His reports are always to a high standard, so we can rely on them if the tax office ever looks at the transaction.

“It’s also important for us to work with someone we trust, because we’re in the same industry and someone unscrupulous could try and poach our clients. We know that would never happen with Kamal.

“On the contrary – he sometimes deals with our clients directly, and he gets along with them and explains things clearly to them. We now refer clients to him for audits, as well.

“Finally, he’s very responsive – he’s there whenever we need him.

“We feel it’s a great relationship, which is why we keep on coming back!”

THE CLIENT

This prestigious consulting firm (Blackdot Consulting Pty Ltd) focuses on implementing strategic change for its clients that results in lasting customer-centric growth. Its clients include HSBC, JP Morgan, Deutsche Bank, eBay, AstraZeneca and Samsung among many other high-profile businesses.

THE CHALLENGE

The client was looking to expand its services out of Australia to other parts of the world, starting with North America and Europe. They wanted advisers who could not only deal with the basics but help them through the tax complexities involved with international growth and ensure they remained tax-efficient and compliant.

WHAT WE DID:

We worked with them to define and document the service relationships between their proposed offices in various countries. As part of this, we introduced them to Kreston US member CBIZ, James Cowper Kreston in the UK and Ardent Business Advisory in Singapore.

The co-ordinated approach between all the parties meant Blackdot received a seamless global service, and we are delighted that their overseas businesses have enjoyed strong growth in recent years.

WHAT THE CLIENT SAYS:

“We had ambitious plans to grow internationally and were guided every step of the way by our Kreston partners. Our international expansion has been a great success and we, of course, continue to work closely with Kreston Global during the next stage of our journey.”

“We’ve enjoyed a long-term and successful relationship with Blackdot over the years which has led to a deep understanding of the business and its aims. We were very pleased to introduce them to the Kreston Global network which proved so valuable.”