Yearly Archives: 2017

The Value Of An Ethical Business

So, this is going to be a controversial posting. I wonder what you think about the morality of your behaviour when you choose to change professional advisors? I don't mean the professional ethical rules, but the morals of how you do it. And how should the professional advisor react? Here is a story of how a client of mine decided they wanted to change accountants. Read through the circumstances, and then tell me what you would have done. (more…)...
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Related Party Benefits

Related Party Benefits are benefits, outside of normal remuneration or commercial arrangements, given by a Corporation to a related party. For example if the Chairperson is given a loan by the Corporation, or another Director is provided with free housing, outside of normal remuneration or outside of an arms-length commercial arrangement where they have provided a service and are getting paid for that service - these are Related Party Benefits. Related parties include Directors and close relatives, and the entities or companies they control. Both regulatory bodies, ASIC and ORIC, require that Related Party Benefits and transactions are approved by members at general meeting, or where allowed by the legislation, approved by the Board. They must be transparent. Even without legislation it is simply good governance to manage any transactions in which related parties gain a benefit. Clearly this could be a minefield in an Indigenous organisation. (more…)...
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Do You Want A Good Business Or A Great Business?

I was talking to a client recently about preparing a long term plan for his business. He replied that while it was interesting he really didn't need all the stuff I do for others, like business planning, marketing, and systems. He said that he thought he was a good business man, in his words "not brilliant but I know my stuff", because he had learned how to run his business through experience. Now let me set the scene. Let's call him Danny. Danny is not an older business person dyed in the wool in the old ways. He's in his 40's and while he struggles a little bit with tech, he uses the internet a lot to research and find new suppliers and markets. He's not what I'd call conservative and he has run his business successfully for over 10 years. What do I mean by "successfully"? Well, it's a small business that supplies raw material to manufacturers. It's not a big market so Danny keeps his small customer list happy and has only lost customers when the customers have gone out of business or after being beaten on price, never through dissatisfaction. As a small business with a small customer list Danny doesn't care about...
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Indigenous Organisations Should Deliver For The Short Term But Focus On The Long Term

Is your organisation too reactive? I'm not talking about the bush fires you have to put out every day. That's just a symptom of an under-resourced not for profit or grant funded service. No, I'm talking about how you tailor and manage the services you deliver by aiming at what is the issue of the moment. For example is your Board, hearing from your members, concerned about housing, so you decide to provide housing support services? That's not necessarily wrong, but is it supportive of your long term objectives? (more…)...
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OTS Management