Based on your experience assisting these sorts of businesses, what services do you think are necessary for Tourism Operators?
Over the lifecyle of a Tourism Operators business - whether relatively small or large - there are a consistent range of services that are typically going to be required.
These services will only all be used over the whole life cycle of the operation. For example, obviously business succession services will not be used until an operator is ready to move onto something else or to retire from active business life. Similarlty some of these services outlined below will only be used at certain stages of the Tourism Operator's business.
Nevertheless we have outlined below the sub-set of sevices we provide, that can fairly be considered as necessary for Tourism Operator to ensure they get the full benefit out of their Tourism Operation.
Chief Financial Officer / Commercial Accounting Services
- Strong Activity Based Costing Information - essentially so that the operator really knows their costs and just how much money is being made at each price level used throughout the season / cycle. It is often necessary for an operator to maintain capacity utilisation and business by pricing at different levels throughout the year. Knowing how much money is made or even lost at each price point is critical to ensure cash flow can be managed and solvency maintained.
- Cash Flow Modelling through the year showing different cash flow impacts in each season including well founded estimates of service volume and this costs.
- Financial Management Reporting that allows the operator to monitor the progress of each business area in the operation - consolidated whole of business reporting is not enough to know how the business is performing and take action as needed where you have more than a single business process. Each business process or value chain being sold to customers needs its own financial management reporting.
While these capabilities need to exist and be continuously developed and adapted within a Tourism Service, Ascendia Accountants has the commercial accounting experience and expertise to assist your operation to establish these monitoring and reporting systems.
We have Chief Commercial Accountant experience on our partnership team.
Detailed Tax Advice - Areas Impacting on Tourism Operators
There are specific provisions relating to many tourism operators that can assist with the tax expenses of these businesses.
Advice for an operator should consider the specific circumstances of the operation. There are so many different types of tourism operator with so many different exposures and technical tax opportunities and issues.
Areas that have been relevant to operators we have advised in the past include the:
- Diesel Rebate availability and record keeping
- Equipment Leasing treatment,
- Equipment Depreciation treatment related to specialised equipment,
- Building Depreciation,
- Asset Protection and Equipment Registers / PPPR register and ownership
- Subcontractor Provisions and agreements, payroll tax, work cover etc.
Business Risk Management Services - including review and update of:
Stakeholder or shareholder agreements
Sub contractor agreements (are you meeting ATO and State Government requirements or are you risking a large unexpected tax bill?)
Division 7 a loan agreements - have your loan agreements been prepared properly?
Any other business law matter you may wish to seek advice on - to protect your business - in particlar relating to the many State based laws which impact on Tourism Operators. (Laws relating to property, property use, local government land use regulation, environmental laws, leasing and crown law matters.
Superannuation Accounting and Advice
Including relating to property inside super. Don't get this wrong or you can lose up to 47% of the asset in super!
Business Succession Planning Advice and Implementation - including relating to:
Tax effective transfer of business
Business sale agreements
Vendor finance arrangements
Transfer of lease liabilities or assets
Transfer of licenses / rights
Transfer of business assets
Indemnity for tax or employee liabilities etc. etc.
Establishment of Investment or additional business venture entities
Including legal advice pertaining to:
Most appropriate business or investment structure
Establishment of relevant entity as appropriate such as partnership agreement, joint venture arrangement, company and stakeholder agreement, unit or discretionary trust deeds and related agremeents, loan agreements, registration of charges relating to loans, bare trusts, etc. etc.
Investment Portfolio Advice and Management - including:
- Investment advice for your or your investment entity detailing specific assets to purchase and in which amounts,
- Ongoing portfolio and investment review advice
- Ongoing management service including all administration of assets, reporting of position on a daily basis etc. etc.
Retirement Planning Advice - including personal financial advice regarding:
- How much capital do you need to retire?
- When can you retire?
- How much income can you derive from your capital?
- Appropriate and recommended investments for your portfolio providing retirement income etc. etc.
Estates Planning Advice and Implementation Services - including relating to:
- Business assets
- Superannuation assets
- Assets held in related trusts
- Assets owned by you personally
Why should I as a Tourism Operator consider Ascendia?
Ascendia Accountants has acted for large tourism operators in Australia. We are experienced in advising clients who have had to deal with the commercial and legal as well as tax issues.