Case Studies
Gain a deeper understanding of how we make a real difference to our clients.
Brent was a senior employee with a major energy company, but for a number of years, had harboured a dream of going into business for himself. He had decided upon the direction that he wished to head, and was ready to take the plunge.
Still paying off a family home, and with a wife and two young children, Brent knew that the leap into small business was not one to be taken lightly. He understood the importance of doing things the right way. He was also planning on starting the business with a business partner, Alison, and he wasn’t sure what additional issues came with that.
Both Brent and Alison made an appointment to meet with a PT Partners advisor who took the time to completely understand their background, current financial situation and business aspirations.
We worked with Brent and Alison to create a profit & loss forecast, and we performed cash flow projections so that they had a clear idea on the working capital they would need in their crucial first year of business.
Once Brent and Alison had made an informed decision that they were ready to move forward, a trading structure was established for the business which offered not only tax effectiveness, but also the protection of personal assets.
Separate personal structures were created for each of Brent and Alison that tied in with the business structure.
We guided Brent and Alison on their tax and recordkeeping obligations, and helped them choose the accounting software package that best met their needs. We assisted them in customising and configuring that accounting software.
We facilitated meetings with the insurance connections in our Adviser Network to ensure that Brent and Alison each had adequate insurance coverage for life, income protection, key man, etc.
Brent and Alison acknowledged that their Wills were outdated. We facilitated a meeting with an Estate Planning lawyer in our Adviser Network to have their Wills modernised and reflective of the new business structures that had been created. Powers of Attorney were also drafted together with Shareholder Agreements to deal with a range of issues, including what should happen to the business in the event of an unforseen circumstance.
Brent and Alison commenced their business venture with the confidence that they were correctly structured, better informed and prepared to meet their ongoing obligations. Their personal insurances and estate planning needs were in order, and they had shareholder agreements in place to govern their relationship with one another.
They could now concentrate on their business, safe in the knowledge that all of their bases were covered. By seeking the right advice, they had given themselves every chance of success.
Miles, Dermott and Justin operate an architecture business, employing about 20 staff, and have been in business together for nearly 5 years. They came to PT Partners because their existing accountant was mainly just a tax return preparer. He wasn't providing them with any real advice, nor strategies for the future. They wanted an accountant that could help them grow and succeed.
After getting to know the owners and the business, we first took stock of their existing trading structure and identified a number of shortcomings with it. Too much tax was being paid and they faced more personal exposure than what they needed to. We re-structured their operations to correct these things.
The business had never enjoyed frequent and accurate reporting. We worked with Miles, Dermott and Justin to identify the key performance indicators (KPIs) that mattered the most to them, added some that we considered vital, and then put in place a system where these could be provided in an easy-to-understand format on a regular basis.
Miles, Dermott and Justin started their business on a handshake. Since then, they had operated without any shareholder agreements. Using the legal and insurance connections in our Advisor Network, we were able to control and oversee the processes to put this right.
It was apparent both to us and the owners that a number of key senior staff in the business were at risk of being lost if the right incentives could not be created for them. With this in mind, we developed a bonus and share acquisition strategy which entailed these staff members becoming more closely aligned to the business.
Miles, Dermott and Justin were looking for new ideas and fresh perspectives. Their former accountant was not proactive and had become complacent in the role. At PT Partners, they now had an accountant by their side who had a genuine interest in seeing their business succeed.
Their trading structure had been improved, resulting in much better tax outcomes and greater protection of their personal assets.
They now had a system of regular KPI reporting, giving them clarity and accountability in terms of how the business was performing. We have quarterly meetings to review these numbers and discuss any other challenges they are facing.
A succession plan has been created and the right agreements and insurances are now in place to guard against unforseen events. In addition, they have a strategy in play for granting shares to key staff in their business.
Their business is perfectly placed to grow and succeed into the future.
Janette was employed by the Queensland government. She had been a steady saver over the years, but other than a few listed shares, most of her savings were in term deposits. She earned a good salary but was unhappy about the amount of tax she was paying. Janette had always lodged her own tax return.
She was struggling with the decision as to whether to keep doing what she was doing, or invest in other areas. Also in the back of Janette’s mind was the fact that she was planning on retiring in 10 year’s time, although she knew her superannuation was probably insufficient.
Janette made an appointment at PT Partners. After reviewing her current situation and recent year’s tax returns, the first thing that was obvious was that there were a number of significant tax deductions available to Janette that she was unaware of and thus had not been claiming.
We also worked with with Janette to ascertain her retirement goals, and then arranged a meeting at our office with the Financial Planning connection of our Advisor Network. This process lead to a financial plan being created for Janette and an investment strategy aimed at achieving her goals.
Janette was also eager to purchase a residential investment property. PT Partners assisted with this decision by providing Janette with cash flow projections of the financial position and tax savings of her proposed property purchase. We also introduced Janette to the Finance Broker connection in our Advisor Network.
Janette’s ongoing tax returns were now in expert hands, and she could rest assured that her tax deductions were being maximised. We also amended Janette’s past two years of tax returns to claim back some of the tax deductions that she had missed out on when preparing her own returns.
She had a financial plan in place from a licensed financial planner that gave her a clear vision of where she was heading. Rather than having the bulk of her savings on cash, she now enjoyed a diversified portfolio of investments which include the residential investment property that she had always wanted.
Janette’s tax position was also greatly improved due to the tax advantages of her investment property investment, together with some strategies which have been put in place to accelerate her superannuation savings.
Robert and Marie were in their mid-fifties. Robert owned his own plumbing business while Marie was employed as a retail assistant.
Over their working lives, they had accumulated reasonably substantial superannuation savings but were unsure of how much longer they should continue to work and how best to manage their superannuation balances.
We worked with Robert & Marie to understand their ideal time horozons to retirement and their future lifestyle requirements.
Through this process, we determined that a Self-Managed Suparannuton Fund was right for them. We assisted with the establishment of the fund and looked after its ongoing reporting and tax obligations.
Through the Financial Planning connection in our Adviser Network, we guided them on the "roll-over" of their existing super balances into their new self-managed fund, and the investment of those funds.
We put in place a strategy for Marie which involved a combination of salary sacrificing a portion of her employment income and the commencement of a "transition-to-retirement" income stream from the new self-managed fund.
We took the time to understand Robert's business and its cash flow and created a contribution strategy around this, so as to maximise his opportunities to contribute to super while he was still working.
Robert & Marie had been unsure about their upcoming retirement and how to handle their superannuation. They now had a clear vision of where they were heading. They had their own self-managed fund, and PT Partners to take care of the annual reporting and tax returns for that fund.
Innovative strategies meant that Robert & Marie were maximising their after-tax earnings for the remaining years of their working lives. The superannuation balances were also enjoying early tax relief in the years prior to retirement.
