Latest news with #CharteredAccountantsAustralia
Techday NZ
6 days ago
- Business
- Techday NZ
Succession planning crucial as Baby Boomer SME owners retire
New research from MYOB's Bi-Annual Business Monitor highlights a significant lack of succession planning among small and medium-sized businesses (SMEs) in Australia, with only 24% of surveyed owners and operators having a plan for their exit. The findings indicate that almost half (48%) of Baby Boomer SME owners, aged between 60 and 78, intend to leave their businesses within the next one to five years. The vast majority of these exits, 87%, are motivated by retirement. Of those planning to retire, 34% expect the sale of their business to form a nest egg for their future, while 19% plan to pass their enterprise onto a family member. This anticipated shift underscores the importance of succession planning for long-term business sustainability, as intergenerational transitions are set to reshape the SME sector in the coming decade. Generational perspectives MYOB's previous survey data also revealed that interest in business ownership among young Australians remains high. Seventy-five percent of Gen Z respondents expressed consideration in starting a business. The appeal is driven by factors including the prospect of becoming their own boss (41%), moving away from conventional working hours (37%), and the desire to turn passions into viable enterprises (33%). Reflecting on these trends, Paul Robson, Chief Executive Officer of MYOB, emphasised the significance of readiness in succession planning for existing SME owners: "This wave of generational succession will create a shift in the way we define SMEs next decade. As Generation Z take the reins of this community, fuelled by rapidly diversifying technology solutions, the way we interact with businesses, the way we buy and what we buy from SMEs will be materially different in 10 years' time," said Paul. He added, "Ensuring your business is future fit will be essential for existing business owners, to maximise business performance and build wealth. Futureproofing comes in many forms, from integrating AI for efficiencies, to digitising more and evaluating product mix. A great place to start is a conversation with a trusted advisor, such as your accountant or financial advisor, who can provide focus for the optimal business plan." Advisory support and planning Ainslie van Onselen, Chief Executive Officer of Chartered Accountants Australia and New Zealand, echoed the advice for business owners to approach succession planning with deliberate prudence: "Life can throw up unexpected challenges. The last thing a business owner needs when planning their successor is pressure to make a rushed decision," says Chartered Accountants Australia and New Zealand's Chief Executive Officer Ainslie van Onselen. She continued, "Succession planning needs careful, gradual consideration, to align personal goals with a transition away from businesses that may have taken decades to build. Fortunately, succession planning is a mandatory requirement for all Chartered Accountants in public practice in Australia, so when it comes to giving advice, they're walking the talk. "Chartered Accountants can help you with everything from tax efficiency to staff retention, investment and continuity for yourself, clients and employees. There are a lot of options when it comes to succession – you may be surprised about insights a Chartered Accountant can provide, to both attract new owners and set yourself up for the future." Digital adoption among SMEs The research identified that Baby Boomer business owners are less likely to digitise their operations, particularly in areas such as inventory management, sales and marketing, and employee management. Only 9% have adopted cloud-based solutions for inventory management, 12% for sales and marketing, and 19% for employee management. Paul Robson pointed out that the coming decade provides opportunities for both outgoing and incoming business owners, stating, "This next chapter is an exciting opportunity to see our freshest sector entrants gather their stride and lead the charge in Australian innovation. Previous generations can benefit from all the hard work they've put into their business by setting themselves up for a successful sale." Case study: OiOi's transition One example of succession in action is OiOi, a family business specialising in premium nappy bags. Founder Lisa Bennetts established the company in 1998, inspired by her experiences as a new mother. Her daughter, Isabella Bennetts-Roberts, joined OiOi five years ago, prompting Lisa to begin considering succession planning more seriously. Describing her entry into the business and its evolution, Isabella said: "It was never the plan for me to join my mum's business - she started OiOi in 1998 when I was a baby. But after a few years in eCommerce, I saw huge potential in how OiOi could reach a new generation of parents. Since joining, we've shifted to an eCommerce-led model - now 70% of our sales - and the business is thriving. "With Mum ready to step back, we're exploring succession options that feel sustainable and play to our complementary strengths." Lisa also reflected on the intergenerational handover: "I started thinking seriously about succession planning around five years ago, not long after Isabella joined the company. She showed a clear interest in the business and had a natural aptitude for it, which made me realise there was a real opportunity to begin passing on knowledge and experience. "Isabella grew up with OiOi. From a young age, she travelled with me to trade shows and factories overseas, shaping her understanding and developing a sharp eye for design. She brings a thoughtful, creative, and strategic approach to the brand. It felt like the right time to gradually step back and support her in taking the lead on key decisions. "OiOi is in Isabella's DNA. What gave me the confidence to hand over parts of the business to her was seeing her combine that deep-rooted connection with solid expertise in business and marketing. She brings a youthful, inspirational energy that resonates with a new generation of parents, while respecting the legacy we've built. Watching her take the reins has been one of the proudest moments of my journey. "I'm incredibly proud of her respect for the road travelled and her unwavering belief in where we're headed." MYOB's research and the OiOi case highlight the role of succession planning in ensuring business continuity and adaptability in a changing economic landscape.
Yahoo
13-05-2025
- Business
- Yahoo
‘Simply wrong': Warning for taxpayers
Taxpayers are being warned just because someone has a large following, it doesn't make them a tax expert, with TikTok 'Finfluencers' and AI being called out ahead of the end of financial year. With tax season approaching, the accounting industry body warns of the pitfalls of getting free advice from social media platforms, noting Aussies face big fines and prosecution if they falsify their tax return. Chartered Accountants Australia and New Zealand tax lead Jenny Wong, said it's concerning many Aussies will watch this content and assume they are getting free expert advice. 'In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,' she said. According to Ms Wong, getting bad tax advice could result in missing out on legitimate entitlements or worst still, big fines and even prosecution. CPA Australia took aim at some of the TikTok users' advice, including claiming a pet as a 'guard dog' while working from home. Another claimed they can deduct the cost of a luxury handbag by telling the ATO it is used as a work bag, while a third told Australians they can claim thousands in fuel rebates without a receipt. 'Exaggerating a claim can have consequences. Making false tax claims could result in hefty fines, a criminal record or even imprisonment. Arguing that you took advice from a finance influencer on TikTok won't cut it – your tax is your responsibility,' she said. Ms Wong also warned ChatGPT and other OpenAI tools which should also be treated with caution. 'Nothing can beat the sound advice of a professional tax agent,' she said. 'AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.' Instead of relying on tax tips online Ms Wong offers: Be thorough: Take time to gather your receipts, logbooks and any other evidence to support your work-related expense claims. Check what type of expenses you could claim that are relevant to your work. The ATO has a comprehensive guide to industry and occupation types. Time is on your side: You have until June 30 to purchase any items you need for work and can claim the deductions this year. Don't rush: Lodging your tax return early does not mean you'll get your refund first, but could mean you make mistakes. Remember: the cost of seeking professional tax advice for your tax return is tax deductible. Sign in to access your portfolio
West Australian
13-05-2025
- Business
- West Australian
Facing prosecution: Aussies warned against taking ‘Finfluncer advice'
Taxpayers are being warned just because someone has a large following, it doesn't make them a tax expert, with TikTok 'Finfluencers' and AI being called out ahead of the end of financial year. With tax season approaching, the accounting industry body warns of the pitfalls of getting free advice from social media platforms, noting Aussies face big fines and prosecution if they falsify their tax return. Chartered Accountants Australia and New Zealand tax lead Jenny Wong, said it's concerning many Aussies will watch this content and assume they are getting free expert advice. 'In many cases the advice from these accounts is simply wrong. In other cases, the claims have an ounce of truth but would apply only to a very small group of workers,' she said. According to Ms Wong, getting bad tax advice could result in missing out on legitimate entitlements or worst still, big fines and even prosecution. CPA Australia took aim at some of the TikTok users' advice, including claiming a pet as a 'guard dog' while working from home. Another claimed they can deduct the cost of a luxury handbag by telling the ATO it is used as a work bag, while a third told Australians they can claim thousands in fuel rebates without a receipt. 'Exaggerating a claim can have consequences. Making false tax claims could result in hefty fines, a criminal record or even imprisonment. Arguing that you took advice from a finance influencer on TikTok won't cut it – your tax is your responsibility,' she said. Ms Wong also warned ChatGPT and other OpenAI tools which should also be treated with caution. 'Nothing can beat the sound advice of a professional tax agent,' she said. 'AI tools are only as good as the information you put into them. It may be tempting to ask AI bots for tips, but they are simply not able to compute the nuances of the Australian tax system or your specific circumstances.' Instead of relying on tax tips online Ms Wong offers:
