Presentation is loading. Please wait.

Presentation is loading. Please wait.

10 Appetizers for Managing Costs and Your Business by David Eu.

Similar presentations


Presentation on theme: "10 Appetizers for Managing Costs and Your Business by David Eu."— Presentation transcript:

1 10 Appetizers for Managing Costs and Your Business by David Eu

2 Business Advisors to Growing Businesses Managing Costs & Managing Business

3 Business Advisors to Growing Businesses Appetizers – Managing Costs 1 Outsourcing 2 Tax Incentives 3 Centralised Procurement 4 Internal Controls 5 Audit Exemption

4 Business Advisors to Growing Businesses Appetizers – Managing Business 6 Implementation of budget / forecast 7 Bench-marketing to market leaders / competitors 8 Analysis of key performance ratios / Dashboard 9 Efficient use of resources / optimise working capital 10 Customer loyalty program

5 Business Advisors to Growing Businesses Outsourcing - Definition Contracting out a business process to a third party, such as Accounting, Human Resource or IT Includes both foreign and domestic contracting (includes offshoring or relocating a business function to another country) (Source: Wikipedia)

6 Business Advisors to Growing Businesses Outsourcing - Advantages

7 Business Advisors to Growing Businesses Outsourcing – Quote of the Day

8 Business Advisors to Growing Businesses Tax Incentives Corporate Income Tax Rebate (CIT Rebate) Productivity & Innovation Credit Scheme (PIC)

9 Business Advisors to Growing Businesses Tax Incentives – CIT Rebate Granted to all companies and registered business trusts for YA 13 to YA 15 CIT rebate computed based on tax payable amount after deducting the set- offs (e.g. DTR and UTC) Does not apply to income of a non- resident company subject to final withholding tax

10 Business Advisors to Growing Businesses Tax Incentives – CIT Rebate Benefits Relieves some cost pressures No application required Immediate cash flow benefit when included in ECI (Consider resubmission of ECI if already submitted) Consider deferring your capital allowance claims or plan your group relief for YA 2013 to YA 2015 to maximise CIT rebate benefits

11 Business Advisors to Growing Businesses Tax Incentives – PIC Qualifying Conditions (Source: www.rivin.com)

12 Business Advisors to Growing Businesses Tax Incentives – PIC Benefits 400% tax deductions on up to $400,000 of expenditure per year Claim in income tax return PIC Scheme 400% tax deductions on up to $600,000 of expenditure per year from YA 2015 to 2018 Claim in income tax return PIC + Scheme (Source: www.iras.gov.sg)

13 Business Advisors to Growing Businesses Tax Incentives – PIC Benefits Cash payout on up to $100,000 of expenditure per year Submit PIC Cash Payout Application Form and Hire Purchase Template to IRAS PIC Cash Payout Additional Dollar-for Dollar matching cash bonus from YA13 to YA15 No separate application required. Claim together in Income Tax Return or PIC Cash Payout Application PIC Bonus (Source: www.iras.gov.sg)

14 Business Advisors to Growing Businesses Centralised Procurement Definition: Purchasing made either by company headquarters or some regional or divisional level.

15 Business Advisors to Growing Businesses Centralised Procurement Advantages Minimise costs i.e. economics of scale purchase price, volume deliveries reduces delivery charges Better control of inventories i.e. kept at optimal level via automated purchase system Disadvantages Delays as requires time to collate purchases across departments Not cost effective to buy system for small entities

16 Business Advisors to Growing Businesses Internal Controls Definition; SystematicSystematic measures (such as reviews, checks and balances, methods and procedures) instituted by an organization to:measuresreviews checks and balancesmethods proceduresorganization (1)conduct its business in an orderly and efficient manner,conductbusiness (2)safeguard its assets and resources,safeguardassetsresources (3)deter and detect errors, fraud, and theft,errorsfraudtheft (4)ensure accuracy and completeness of its accounting data,accuracy accountingdata (5)produce reliable and timely financial and management information and;producefinancial managementinformation (6)ensure adherence to its policies and plans.policies plans

17 Business Advisors to Growing Businesses Internal Controls

18 Business Advisors to Growing Businesses Audit Exemption

19 Business Advisors to Growing Businesses Audit Exemption Exempt Private Companies (EPCs) with an annual turnover of less than S$5 million are exempted from statutory auditing requirements. Instead of filing audited annual accounts, the EPCs have to merely submit a declaration of solvency signed by the directors and company secretary. If, for any reason, the solvent EPC is unable to submit the declaration in the prescribed form it must submit its unaudited accounts to the registrar, ACRA.

20 Business Advisors to Growing Businesses Audit Exemption Proposed change by the Steering Committee for Review of the Companies Act on accounts and audit for small companies. A small company is defined as a private company and if it fulfils two of the following criteria: –Total annual revenue of not more than SS$10mil; –Total assets of not more than S$10mil; and –Number of employees of not more than 50. (Source: https://www.acra.gov.sg)

21 Business Advisors to Growing Businesses Implementation of budget / forecast In business, a budget can be defined as a plan for an organisation's outgoing expenses and incoming revenues for a specific time period. Budgets are used in many organisations to: Track and control spending. The purpose is to ensure that available funds are used according to plan, within preset limits and not exceeding available funds. Support funding requests. The purpose is to justify the use of funds and to help plan future spending accurately by describing how funds will be used.

22 Business Advisors to Growing Businesses Bench-marketing to market leaders / competitors

23 Business Advisors to Growing Businesses Analysis of key performance ratios (Source: http://www.subjectmoney.com)

24 Business Advisors to Growing Businesses Dashboard Think of the dashboard of your car. What do you, as the driver, really needs to focus on in order to keep using your vehicle? Take the same approach with the numbers! One clear summary page, which highlights key performance elements. A picture tells a thousand words.

25 Business Advisors to Growing Businesses Dashboard Use advanced excel functions to synthesise data into meaningful visualisations Reports with summarised information rather than raw data Enhance decision making process through building of powerful charts Interactive controls for direct user interface and easy navigation

26 Business Advisors to Growing Businesses Dashboard - Examples

27 Business Advisors to Growing Businesses Efficient use of resources / optimise working capital

28 Business Advisors to Growing Businesses Customer loyalty program Retain existing customers and attract new customers via redemption rewards program Reduce A&P costs via using existing database to perform targeted marketing Using tiered rewards program to entice customers to level up their spending

29 Business Advisors to Growing Businesses


Download ppt "10 Appetizers for Managing Costs and Your Business by David Eu."

Similar presentations


Ads by Google