McGillivrays Case Studies http://www.mcgillivray.com.au/news/category/case_studies/8

It is great to tell everyone that McGillivrays can deliver accounting and business solutions for clients, but people also need to relate to what we can do for them.

So here are some examples of how McGillivrays have helped our clients. All of the details are from real life situations. Some of our Case Studies highlight the financial solutions we have created for our clients but McGillivrays know life isn’t just about the money and the numbers.

You will see that often our Case Studies show that security and peace of mind are just as important. So if you are in business it wouldn’t surprise us if you can relate to some of these situations.

 en-us copyright 05/5/2010 720 Case Study - WA Company is Front Page News http://www.mcgillivray.com.au/news/case_studies/case_study_-_wa_company_is_front_page_news/6 Innovative Western Australian company that made front page news. This company had outgrown its original structure and needed asset protection. TLC Unlimbited operates a prosthetics business based in Belmont, Western Australia. As a leader in the field who manufacturers and distributes prosthetic devices, they made headlines in mid 2009 when a prosthetic finger designed in the United States was fitted to a local Perth patient. TLC Unlimbited negotiated to become sole distributers of the “bionic finger” technology in Australia. The finger can move and operate like a normal finger but requires no batteries or power source. McGillivrays are proud to support this innovative, family business. Asset protection is critical in any business but never more so when you have worked so hard for so long to get your business recognised as a leader in your chosen field. When McGillivrays took on TLC as a client we realised from our first review of their business structure they were dangerously exposed. All of the assets of the business and the property they owned and operated from were in the same company name. We identified two main issues needing immediate attention. Our primary concern was one of asset protection but in this case holding land in a corporate entity was not very tax effective and would be costly in the long run. In a world where litigation is becoming increasingly common TLC had all their assets exposed to unnecessary risk. McGillivrays immediately recommended a restructuring of the business. The transfer of assets into an appropriate trust structure offered much better protection and a more flexible tax vehicle. TLC will enjoy considerable savings in tax both on a business and personal level. We also assisted TLC establish a Self Managed Superannuation Fund, creating immediate tax relief and a means of taking control of their future Wealth Creation strategy. The benefits to the business and the business owners have been enormous and typical of what we do for our clients. The saying “You don’t know, what you don’t know” sounds cliché but it has never been more relevant in today’s world. There are simply too many options for people in business to choose from. Simply too much to know. The best option is to choose a trusted advisor who knows about business. McGillivrays knows about business; that is what we are good at. Ask us and you can find out just what we can do for you. 21/09/2009 Case Study - Rapid Growth for Family Business http://www.mcgillivray.com.au/news/case_studies/case_study_-_rapid_growth_for_family_business/4 How they benefitted from the introduction of cashflow and key performance monitoring systems plus succession planning. Established for over 35 years in Perth our client is a leading player in the corporate audio visual field. They hire and install audio visual equipment, staging equipment, and provide event support delivering technical services to hotels and venues staging high profile events and functions. Like many of our clients, this is a family business and after years of hard work has grown to employ a team of 45 people. One of the issues with family businesses is they can often experience periods of rapid growth that is very hard to control. One of the challenges is to manage this growth in a practical way. Sometimes businesses can expand too quickly with increasing debt and overheads running ahead of cash flows. Our client experienced just this sort of rapid growth when they almost doubled their turnover in the three years between 2005 and 2008. Our answer? Accurate cashflow forecasting and Key Performance Indicator monitoring systems are vital tools for growing businesses. These were introduced for our client to help control costs and improve their bottom line. Working in partnership with our clients is a key issue for us. It means we can form a working relationship enabling us to become almost like a Chief Financial Officer for them. A Chief Financial Officer who is on tap whenever you need them. It’s a great resource for our clients to have. Like so many family businesses, succession planning and exit strategies for the owners are crucial. The original founder of the business now has family members heavily involved in the running of the operation. Over time this will ensure a smooth transition from a passionate business entrepreneur to motivated family members who have the structure and management tools in place enabling them to take the business to new heights. McGillivrays have a number of ideas we are exploring with our clients to ensure they can achieve the best result. We regard this kind of work for our clients very highly. It isn’t always about the money we can save but about the peace of mind we know it gives our clients. Life is for living! Do you run a family business? Wouldn’t mind having your own Chief Financial Officer on call? Call McGillivrays. We know we can add Fresh Expert ideas to your business. 18/09/2009 Case Study - Small Business Needs Help http://www.mcgillivray.com.au/news/case_studies/case_study_-_small_business_needs_help/3 We assist a small manufacturing company negotiate a series of problems too big for them to handle alone. Successful negotiations with the ATO and a new structure using a SMSF gave this business new life. Our client operates a cabinet manufacturing business in the eastern suburbs of Perth. When the clients approached McGillivrays they had a number of issues to deal with including a tax debt with the ATO of almost $1.5 million, a number of outstanding tax returns from prior years and a business structure that needed review. The problems were too big for the owners to tackle on their own. McGillivrays first addressed the tax debt. There were extenuating circumstances and this combined with our knowledge and understanding of Taxation Administration Act saw us sit down with the ATO and negotiate a settlement. The result? A reduction in the outstanding debt to under $300,000. An amazing outcome which relieved a major burden for the owners who could then more clearly focus on the rest of the issues. Next we sat down with our client and worked though all outstanding tax returns bringing them up to date. Then, after listening to some of the issues our client was experiencing we reviewed the structure of their business. Unfortunately many businesses either outgrow their structure as they expand or have had the wrong legal entity from the beginning. Either way, talking to your accountant on a regular basis should help identify some of these issues before they become problems. After careful analysis it was clear the business owners had not been able to make use of the tax saving and Wealth Creation opportunities superannuation could provide. McGillivrays decided to recommend a new structure to our client based around their self managed super fund (SMSF) and the recent changes to the rules that apply to SMSF’s. In the past a SMSF was limited in its ability to purchase assets with the rules relating to borrowing funds being particularly restrictive. Recent changes however now permit a SMSF to borrow in particular circumstances. So working within the new rules, McGillivrays formulated a structure that allowed our client to transfer commercial properties into their SMSF. This will achieve large ongoing income tax savings on rental income and will produce significant capital gains tax savings in the long term. It is also a terrific opportunity for the business owners to build a significant asset for their retirement and retain control over their financial future. Control is a significant factor in many people choosing to operate a Self Managed Superannuation Fund. This case study highlights a number of areas McGillivrays target as high priorities. Our ability to listen to our client and understand their business. Our emphasis on always being up to date with the latest changes in the world of constantly changing taxation law and making the most of our experience to benefit our clients. So what can McGillivrays do for you? Do some of these circumstances apply to you? If this situation sounds familiar to you perhaps you should ask us how we can help. 18/09/2009