Interview with Shiv Jaidka, CA, RTO Accounts
Profile:
With 14+ years of experience, specialising in providing accounting and taxation services to RTOs and VET industry, we can help you with RTO’s financial reporting and tax compliance to eliminate the stress and confusion of meeting your ATO compliance. We can help you with the cash flow budgets and forecasts to avoid nasty surprises. We can also assist you with the completion of FVRA Tool for your initial registration, change of scope/ownership and monitoring review. We provide easy-to-access and understand real-time reports using cloud technology like Xero, ensuring that your RTO is always financially healthy, protected and ready for growth.
Q: What inspired you to become an accountant and help training organisations?
A: I love watching my clients grow and helping them during all stages of their business life cycle. Deciding to specialise in only one industry RTOs, allow us not to recreate the wheel. We have a deeper understanding of tools like the FVRA, which most accountants have never completed. We attend RTO conferences to ensure we are always kept abreast of the challenges and opportunities RTOs are facing.
Q: What challenges have you encountered while working with training organisations?
A: Development of our back-end systems like work papers to ensure we can get RTOs submissions of their FVRA Tool on a timely basis with supporting calculations if requested by ASQA.
Q: What do you think are the key financial considerations for training organisations?
A: Cash Flow Management is very important. Training Organisations are facing the rising payroll costs and overheads. More recently, securing finance is getting harder. You need to have a good understanding of the required working capital and the possible sources of funding to ensure adequate working capital.
Q: What advice would you give to new or existing training organisations about financial management?
A: Maintain a Budget to quantify the business strategy for your training organisation. The start of the financial year is a perfect time to prepare the budget by estimating the income and expenses for the next 12 months. Then review the Budget vs Actuals monthly to manage your progress against the goals and decide on strategies for the next month. Xero has great features to upload your budget and track your performance. The key is to stay disciplined in the process.
Q: What do you think are the biggest financial mistakes that training organisations make?
A: Not looking at the bigger picture, concentrating more on the short-term Profits rather than building a solid Balance Sheet for the RTO that includes the tangible and intangible assets like goodwill.
Q: Do you have any other advice or tips that you would like to share with training organisations when it comes to financial management?
A: The golden tip is always to run your RTO as if you are going to sell it. Always keep your books accurate and up to date. Then you will get the most value for yourself and show this value to a potential buyer at any time.
