Case Study - Partnership to Company

The scenario

One of our clients, Brian, owns and operates a small financial planning practice, Atherton Smiths. He and his wife were frustrated by eleventh hour tax returns and continuously looking in the past and never looking forward. One problem was that Brian was trading under a partnership structure. Anyone who is open to negligence, malpractice or public liability should avoid trading as a sole trader or partnership.

How did we help?

Fortunately Brian actually already owned a company which was under utilised, so we transferred the business into the company to take advantage of the tax benefits associated with using a company. We also set Brian up with MYOB.

The results

Some of the positive results included converting non-deductible debt to deductible debt, increasing protection of personal assets and put the client back in control.

Having the business using MYOB has put more information in a timely manner in front of the client. Now we’ve got time to review and plan, and their tax returns are one of the first we finish.

Clients Thoughts and the Future

Brian feels much more comfortable knowing that each BAS and 30 June they are organised with the books. He was very happy to say goodbye to the mad rush the day before tax returns were due to be paid. With a more informed position, Brian is now budgeting his cash flow as well.