Townsville-based firm Offermans joins forces with national firm SV Partners
Busy local business owners are being warned about a ‘trap’ as cost of living pressures clamp down on every industry. Read the advice from experts.
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North Queensland’s small business owners caught up in the day-to-day grind could be falling into a trap, warns Michael Brennan.
The experienced liquidator and lawyer says businesses need to take a step back and look at their own expenses and how they operate as the cost of living puts pressure on every industry.
Mr Brennan, formerly of Offermans, has recently joined forces with accounting firm and insolvency specialists SV Partners as a director as the firm expands its regional Queensland footprint.
“The real key for every business, no matter what size, is to try and spend the time looking at their own expenses and really understand how their business operates,” Mr Brennan said.
“The trap that businesses face when they’re very busy, is they don’t spend the time looking in their business and you can get caught just continually working on the tools.
“The main focus for every business should be on understanding their business, what it costs to run, and knowing which levers to pull if there’s a constraint.”
Believing that “knowledge is power”, Mr Brennan is pushing for businesses to understand how they operated, ensure there was good cash flow, and to be willing to seek advice.
“It’s always a difficult investment for businesses to make, do you spend the money on going to see your professional adviser or do you put the money somewhere else?” he asked.
“Getting someone outside the immediate business to have a look at what’s going on is always a great idea.”
While local insolvency firms were yet to see an increase in insolvency numbers, he said they were seeing increased recovery actions being undertaken by the Australian Taxation Office “across the board”.
Nationally, for the financial year to date (a period of 52 business days) the ATO applications to wind up insolvent companies has increased by 663 per cent when compared to the applications over the same time frame last financial year.
The number of applications by the ATO to Bankruptcy individuals this financial year has increased 1833 per cent when compared to the same number of applications made for the same period in the previous financial year.
“The ATO recovery action, or lack of it, sets the level of formal insolvency nationally. When the ATO is active in the recovery space, numbers increase,” he said.
“What is apparent is that it is only a matter of time before the ATO does start to have a material impact on Townsville’s insolvency numbers.”
As part of the merger with SV Partners, Offermans’ founder Dennis Offermans was also named a consultant.
SV Partners managing director Terry van der Velde said the partnership would only serve to strengthen the firm’s commitment to regional Australia.
“SV Partners employs 140 staff across 17 offices, predominantly across the eastern seaboard. We have a longstanding commitment to delivering the highest quality service across metropolitan and regional Australia,” Mr van der Velde said.
Originally published as Townsville-based firm Offermans joins forces with national firm SV Partners
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