Accounting and Finance

Finance, Taxation, Insurance and Accounting related articles

Contributed By: Mike Phipps Finance on

Before we begin… a caveat… by the time you read this the content may be out of date. In fact, by the time I’ve finished typing it might be old news.  In fact, I’ve now written this article 3 times.  Each time I complete the task and head off to bed having once again dodged the dreaded deadline extension.  Each morning I awake to new news, some good, some bad.  It’s like Groundhog Day with a twist.  I awake to the same day but with a few bizarre nuances.  Yesterday I was going to comment on the positives of reopening borders, today Victoria reinstates limitedRead More →

I’ve been writing these bulletins for many years now and inevitably one runs out of interesting stuff to say.  Most months I build a mental picture of what I’m going to write about, procrastinate until the deadline date and then frantically try to render what’s in my head into something comprehensible. I often find it difficult to find things to write about, hence the sometimes rabbling social commentary and hopefully amusing anecdotes. In fact, the only time it’s easy to come up with content is when something extraordinary happens. Something like a global financial crisis, a surprise election outcome or a pandemic.  In recent timesRead More →

I remember after the GFC I said something like, wow, now I’ve seen everything.   Wrong! We understand that these are challenging times.  I use the term challenging because really scary and uncertain just sounds too confronting! Please know that we are here for our clients and indeed anyone who needs us.  Having said that the banks have indicated that to expedite positive outcomes they are dealing directly with broker introduced borrowers and that’s fine.  If you need to us to support your case and liaise with your banker, we are here.  If you feel your bank is not stepping up please understand that they areRead More →

Contributed By: Mike Phipps Finance on

Your Small Business Borrower Rights Wow, how time flies. Would you believe it’s just over a year since the tabling of the Final Report of the Banking Royal Commission (it’s got a way longer official name, but you know what I’m talking about). I’m sure you would all agree that we are certainly enjoying the positive outcomes of the millions spent with fast and effective credit processes, improved banking industry culture and transparency and a customer interest first approach… or maybe not. In any event the circus that was the royal commission did divert attention from an earlier report that, for business borrowers, has farRead More →

Contributed By: Mike Phipps Finance on

In a long tradition of getting almost all my predictions wrong I will once again gaze into the oracle and see what gazes back. But, before I do, I want to spend a few paragraphs reflecting on what I think is the least appealing trend in big business over the past 12 months. This trend has been going on for some years, but I feel like we hit peak corporate ambivalence in 2019. The social commentator and demographer Bernard Salt has written a couple of articles recently which I would commend to you. Bernard reflects on the state of corporate Australia and, in particular, theRead More →

Contributed By: Mike Phipps Finance on

Congratulations. You have read the title of this month’s missive and you are still with us. Well done. A less engaged reader would have switched off immediately and grabbed a copy of Who weekly. Surely more entertaining to learn that Brad and Angelina are splitting, and Prince Harry is in fact an alien. You couldn’t make that stuff up………! But I digress. Back in the day I worked for a bank and from time to time had the dubious pleasure of managing teams of people. I also had the even more dubious pleasure of being managed by a range of more senior but, in someRead More →

Contributed By: Mike Phipps Finance on

“Value : A quality or idea that is considered important. The word value comes from the Latin Valere, which means: Be worth. Value is defined as the worth, usefulness or importance of someone or something.” Courtesy of Professor Google Value for money. I value our friendship. Value versus return. My personal values. Value of my personal wealth.  Valuations.  Loan to valuation ratio. Value of the dollar. Value of my time. Our corporate values. Value Value Value………………….it’s a blur but what does it really mean? I’m prepared to have a crack but first, a caveat.  Given that trying to discern value in its many forms is a bit like attemptingRead More →

Back when real estate wasn’t as expensive, multipliers weren’t as high and banks didn’t care as much about serviceability as they did security, buying a lot with a business all worked without much of an issue. That has changed (noticeably for high value real estate with shorter term management rights agreements), which has led to us receiving lots of requests from clients about separating their lot from their management rights business.  Every management rights business is different. There are no hard and fast rules, but in general terms, these are the issues that come if you want to consider doing breaking that link. Let’s startRead More →

Contributed By: Mike Phipps Finance on

As some of you will no doubt have figured out by now, I have a weakness for cars.  Old cars, new cars, fast cars, slow cars, even electric cars and the occasional motorcycle. I am fascinated by cars and the auto industry. This basic flaw in my good judgement has led to me investing wisely in a few vehicles, much to the dismay of the managing director.  By wise investment I mean spending more than said vehicles will ever be worth and then justifying the “investment” by grossly overinflating the values when debating the matter with my accountant, bank manager and afore mentioned MD. MyRead More →

Contributed By: Mike Phipps Finance on

Before you read any further it’s important that you take the time to dial up Bobby McFerrin on You Tube and get into the reggae groove.  The following will simply not work otherwise! Here’s a little song I wrote You might want to sing it note for note Don’t worry, be happy Some say credit crunch I say bugger that, let’s do a long lunch Don’t worry, be happy In your loan application, there is some trouble Royal Commission might make it double Don’t Worry, Be Happy Ain’t got no cash or equity You can always call on me Don’t worry, be happy. With apologiesRead More →