Accounting and Finance

Finance, Taxation, Insurance and Accounting related articles

Contributed By: Mike Phipps Finance on

Rules are interesting. Some think the more rules the better while others subscribe to the school of discretionary decision making. I am a fan of some common sense latitude in most decision making processes, particularly those involving the individual merits of a finance application. It is true that many cry out for absolute certainty in all things finance. Problem is, hard and fast rules will inevitably gravitate to a lowest common denominator environment where we will all be compelled to walk as slow as our slowest borrower. Have a look at some of the people giving evidence at the banking commission and I would proposeRead More →

Contributed By: Mike Phipps Finance on

Don’t it always seem to go That you don’t know what you’ve got til its gone They paved paradise And put up a parking lot… Joni Mitchell Big Yellow Taxi 1970. The story goes that Mitchell was inspired to write this tune on a trip to Hawaii. She threw open the hotel curtains to take in a mountain vista and was confronted by acres of concrete car park. We will come back to Joni later. This month’s dispatch comes to you from various locations in Switzerland and Italy where the managing director and I are taking in the so called holiday of a life time.Read More →

I frequently speak with managers who are frustrated by the standard of service offered up by so-called specialists in Management Rights, who in reality, have limited experience and knowledge of this industry and result in unnecessary professional fees and cost blowouts. Existing “industry accreditation programs” appear to me as little more than pay-for-play operations that exist purely to sell magazine advertising, where anyone can be ‘accredited’ if they simply open their chequebook. This doesn’t help our industry, in my opinion, as such we have set out to develop a program that has complete financial independence and is entirely merit based, as measured by the managementRead More →

Contributed By: Mike Phipps Finance on

I was once told that the definition of a consultant is someone who steals your watch and then asks you the time.  I have also heard that a good accountant, when asked the total of 2 + 2 will reply, “What would you like it to be ?” Perhaps fortunately, in our world, things are a bit more cut and dried.  We are certainly seeing a quantum shift in the banks’ approach to loan assessment and obviously the various investigations and commissions currently under way are driving a far more conservative credit environment. Interestingly, this is leading to a refocus on lending fundamentals and, inRead More →

Contributed By: Mike Phipps Finance on

For those of you who may still think the photo I use in some articles is current, it is not. The look of shock on some faces when we first meet suggests that it might be time to update said image and nothing confirms my retreat into older age more than recent events.  Yes, it’s true.  The managing director and I have purchased a caravan.  But Mike, you’re too young I hear you cry.  Nonsense, the MD may be too young, child bride that she was, but I am certainly age qualified. In fact, I know of several other industry specialists who call something onRead More →

Your trust account and the way you operate it is your lifeline. When dealing with thousands of dollars there are 2 types of people. 1) Honest 2) Dishonest There is no in between. As a managing agent, landlords are trusting you to handle their income with honesty and integrity. After many years in the industry, I have performed end of months with as little as $2000 in the trust account and as great as $200 000 in the account. Each time the money, system and process were treated exactly the same……with care. One property or 1500 properties, each state of Australia has regulations and rules inRead More →

Contributed By: FNX Finance Group Pty Ltd on

The general tightening of the market we reported upon from June 2017 to January 2018 appears to be have ended and the listings’ for the businesses are now growing again and the time on the market has gone up 10 days to 86 days on average.  In the May18 quarter 73 more businesses came onto the market than the previous quarters.  The multipliers also reduced slightly which have been a result of the market conditions.  Data provided by TheOnSiteManager.com.au ‘On the Market Analysis’ – Market Pulse · The difference in Purchase Price because of the agreement type is; · 92% of all Stock is for sale inRead More →

Those who know me well will attest to my obsession with detail. I think the psychiatrists call it being anally retentive, not a particularly pleasant vision to be sure. The managing director calls it a mild mental disorder manifesting itself in a capacity to be a complete pain in the posterior. I justify the way my head works by a need to be highly organised and a desire to drift off each night knowing those I rely on and trust are equally diligent. Yes, my desk is uncluttered and everything has its place. Failure to return said thing to its rightful spot will be punishableRead More →

Contributed By: HiRUM on

Article originally appears on the HiRUM industry blog What is bundling? Bundling is the term used when property managers roll all of their management services into a single, ‘overall’ commission fee, rather than charging owners a separate amount or commission rate for each sub-service. For example, as a property manager, you would traditionally charge your owners for the below services, as dictated by your body corporate agreement: Management fee: 12% of gross tariffs Marketing fee: 3% of gross tariffs Merchant fees: 2% of gross tariffs Housekeeping fees: $40/clean Linen costs: $3/bed/booking Guest amenities: $10/guest Spring cleaning: $250/year Foxtel: $35/month PABX: $30/month Normally, these charges wouldRead More →

Contributed By: Mike Phipps Finance on

If you read the papers you will no doubt have seen lots of press coverage of the ongoing investigations into our banks. What we have at present is a two-pronged process with a royal commission investigating potential misconduct and the Productivity Commission investigating competition, or lack thereof, within the banking sector.  Both processes appear to be primarily focused on consumer lending as regulated under the National Consumer Credit Protection Act, albeit commercial and business lending will no doubt get some attention in due course. Needless to say, finance brokers have been caught up in the various enquiries and the press have been none to kindRead More →