HOW SALEABLE IS YOUR BUSINESS?
Most business owners think that their business is worth more than it actually is. In fact, the majority of smaller businesses are either not saleable, or do not sell. The number one reason for this is that business owners fail to plan for the sale of their business years in advance of putting it on the market.
In this month’s June issue of the BAN Bulletin, Monique Sharland, founder and CEO of Business Accounting Network, reveals some of the main value drivers of business and shares a few tips on what you need to do together with your accountant to prepare your business financially in advance of any prospective buyer’s due diligence process.
Business Accounting Network’s accountants can assist you with preparing a 3 year financial plan that targets factors to increase the value of your business and will consult with you periodically, offering mentorship in auctioning the plan. We have also developed a due diligence readiness program that will prepare you and your business for prospective buyers in the future.
Visit our Newsletters tab and click on the BAN Bulletin – June 2016 to read the full article.
MANAGING YOUR REPUTATION THROUGH A CRISIS
The reputation of a business is essential to its survival. The trust and confidence of the customer or client can have a direct and profound effect on a company’s bottom line.
Remember the recent David and Goliath battle between Frankies soft drink company vs Woolworths? Another all too fresh memory is that of one of KFC’s franchisee’s staff washing chicken on a dirty concrete floor. The importance of reputation has become increasingly apparent with the rise in popularity of review sites like Hellopeter.com.
When was the last time you thought long and hard about your company’s reputation? The odds are that you’ve been forced to think more about your company’s reputation and how it’s affecting everything from your company’s ethics, hiring process, attracting and retention of talented employees, your quality control, reliability, management, leadership and customer focus to your company culture.
In the past, businesses relied on word of mouth of customers, suppliers and their own employees in order to establish, build and maintain their reputations. In this age of social networking, websites, and other methods of instant communication, businesses both big and small must be conscientious of their reputations on a constant basis and be responsive to any crisis that may have an impact on their reputation.
Our strategic alliance partner, Regine le Roux, MD of Reputation Matters shares insightful tips on how to manage business reputation through a crisis in our May 2016 issue of our BAN Bulletin.
Visit our Newsletters tab and click on the BAN Bulletin – May 2016 to read the full article.
PROTECTION OF YOUR BUSINESS FIXED ASSETS
If you haven’t signed a personal guarantee or suretyship that pledges your business assets for some loan or you have not incurred some significant liability that threatens to wipe out your business, then now is the time to consider protection for your business assets.
This is particularly relevant to those businesses with fixed assets of significant value, for example the manufacturing and engineering sectors who own expensive plant and machinery.
An asset-protection plan employs legal strategies, put into place before any lawsuit or claim arises, that can deter a potential claimant or help prevent the seizure of your business (and personal) assets after a judgment. If you haven’t already put your asset-protection plan in place, don’t wait – the longer the plan has been in existence, the stronger it likely will be.
Chanelle Rheeder, a director of our alliance partners and Trust law specialists, Delgado Velosa Kenworthy & Associates, discusses this option in our April 2016 issue of the BAN Bulletin.
Visit our Newsletters tab and click on the BAN Bulletin – April 2016 to read the full article.
NEW RETIREMENT SAVINGS TAX INCENTIVES IS HERE!
According to South African government statistics, South Africans are now borrowing more than they are saving. To encourage people to plan and save for their retirement, the National Treasury is forfeiting short term tax revenues to relieve fiscal pressure in the future. Monique Sharland, CEO of Business Accounting Network, discusses the new retirement fund tax reforms and the changes employers need to prepare for that come into effect on 1 March 2016 in our March 2016 issue of the BAN Bulletin.
Most payroll software systems should now all be aligned to the new retirement tax regulations. Clients administering and processing their own payrolls in-house are advised to ensure that their payroll systems are updated before running their March payroll.
Visit our Newsletters tab and click on the BAN Bulletin – March 2016 to read the full article.
THE ART OF RESOLVING DISPUTES QUICKLY AND COST EFFECTIVELY
Legal disputes are not uncommon in business today, and legal claims can be especially worrying as it costs precious time and resources that often produces a result that is less than satisfactory for all parties concerned and destroys business relationships.
Using collaborative law is a way of resolving disputes without litigation. Business Accounting Network’s strategic alliance partner, admitted attorney to the High Court and commercial litigation specialist, Robyn Hey shares more insight into alternative dispute resolution in our February 2016 issue.
Visit our Newsletters tab and click on the BAN Bulletin – February 2016 to read the full article.
PERSONAL LIABILITY OF DIRECTORS AND MEMBERS FOR COMPANY TAXES
As a business owner, do you understand what it means when you are appointed the Public Officer of your company, close corporation or trust or when you signed as the Representative Taxpayer on your EMP (PAYE) registration form? Most people don’t!
We have recently seen SARS delivering letters of “Notice of Personal Liability of Representative Taxpayer” issued in terms of the Tax Administration Act read together with the Income Tax Act. In our December 2015 BAN Bulletin newsletter, we reveal two situations recently experienced by clients that we hope will induce you, if you are unsure, to check with SARS who the representative taxpayers are in your business (and any past businesses you might have been involved in) and to caution those who are a registered representative taxpayer or public officer, be aware of what your responsibilities are.
Did you know there’s one thing you must do if you cease to be a representative person or withholding agent? You must notify SARS within 21 business days from the effective date, otherwise you could be held personally liable for the taxes of the company, CC, or trust.
But be careful! Just because you cease to be a representative person or a withholding agent it doesn’t relieve you of the liability you had while you were responsible.
Visit our Newsletters tab and click on the BAN Bulletin – December 2015 to read the full article.
BUSINESS VALUATIONS – IN SEARCH OF FAIR MARKET VALUE
Many business owners think that their business is worth more than it actually is. That is because a business’s value to a seller is more often than not the same value to a buyer. For one thing, there are several valuation methods that can be used and even choosing the correct method (or more likely, the correct combination of methods) to use in a given situation is more of an art than a science.
There are a number of instances when you may need to determine the market value of your business. Indeed, buying and selling a business is the most common reason. Estate planning, divorce settlements, determination of a buy-out price for a partner’s share or verification of your worth for lenders or investors are other reasons. To intentionally cultivate business value over time should be the focus of any business owner and an annual valuation can be used to measure the performance of the business.
Our November BAN Bulletin newsletter, written by our alliance partner and business valuations expert, Dr John Hendrikse, focuses on 14 considerations in achieving the goal of a fair market valuation for your business.
Valuing a company is scarcely a precise science and can vary depending on the type of business and the reason for coming up with a valuation. The process can be very complex and time-consuming, and takes quite a lot of experience to do well. Hopefully, you’ll take our advice and hire an expert business valuator to do this for you.
Visit our Newsletters tab and click on the BAN Bulletin – November 2015 to read the full article.