ASSESSMENT 1 – PROJECT STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, students are required to liaise with your client and undertake a business
needs analysis. This can be undertaken in a business of the student’s choice in consultation
with their instructor, or alternatively can be done in a simulated working environment with
the instructor role-playing the part of appropriate management of a simulated business model.

Part 1:

You are to consult with appropriate personnel in order to undertake an assessment of your
client’s financial needs. You must undertake an interview / consultation process to achieve the
following:

Good morning Anthony, how are you today?

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I am Amanda the accountant.

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We'll have a chat about the company so I'll ask some general questions, is it okay?

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My first question is:
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 Could you list all the financial objectives of the client, including but not
limited to:
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- Tax liability reduction goals

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1. Increase Retirement Contributions

2. Transition Non-Qualified Investments

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3. Donate to Charity

4. Experience Award-Winning Trading Platforms

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5. Organize Your Accounts for Tax Optimization

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6. Tax-Smart Investing

7. Self-employed individuals are usually able to deduct your health insurance,

and it's missed all the time

8. Review Division 7A loan agreements or Repay your private loans to your

business before year end.

9. Review useful life of fixed assets – there may be benefits in trading in assets
before year end

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 Also, we can do depreciation is an income tax deduction that allows a taxpayer to recover the
cost or other basis of certain property. It is an annual allowance for the wear and tear,
deterioration, or obsolescence of the property.

Most types of tangible property (except, land), such as buildings, machinery, vehicles,
furniture, and equipment are depreciable. Likewise, certain intangible property, such as
patents, copyrights, and computer software is depreciable.

“Cost segregation studies” to accelerate depreciation on assets:

To determine, and accelerate, depreciation so taxpayers can get the deductions today instead
of 20 years down the road, taxpayers can undergo what's called a 'cost segregation study,'
which divides assets into their respective categories and assigns the appropriate deductions.

- Wealth accumulation

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Of the most important ingredients for accumulating wealth is planning. Planning to

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accumulate wealth enables you to work effectively toward your goals. Without planning you
risk investing considerable time, effort and resources with sub-optimal results.

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Retirement plans: With qualified retirement plans come tax benefits as well as wealth
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accumulation for the future. Plans like the employer-sponsored 401(k) (limit $18,000 for
2015/2016) are funded with 'pre-tax' dollars that decrease your taxable income
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In addition to the usual considerations; investment risk, asset structure and ownership, debt
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management, superannuation contributions, insurance, investment selection and

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diversification, and estate planning, some of the wealth creation strategies we may consider
for you include: Regular Savings Programs, borrowing to invest (or gearing), internally
geared funds.
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- Asset development
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Is a series of strategies that provide long-term benefits and have the potential to help. For
example property investors can maximize the tax efficiency of their investment properties
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with some tax planning.

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Consider prepaying interest on fixed rate loans before 30 June to bring forward interest
deductions (particularly if you expect income in the 2013 tax year to be more than your
expected income in the 2014 tax year) bringing forward other deductible expenditure (e.g.
maintenance) to claim a deduction for the expenditure in the current year making sure you are
maximizing all your depreciation entitlements (including capital works entitlements)
collating records so you can substantiate any investment property related travel expense
claims deferring sale of any investment properties until 1 July to defer any capital gains tax
liability to the 2014 year (note a CGT event occurs on contract date, not settlement date).

 Also, could you identify relevant legal and financial requirements that will need to be
considered in order to achieve the client’s specific objectives

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 1. Insurance Contracts Act 1984

2. Superannuation Industry (Supervision) Act 1993

3. Superannuation (Resolution of Complaints) Act 1993

4. Retirement Savings Accounts Act 1997

5. Life Insurance Act 1995

6. Australian Securities and Investments Commission Act 2001

7. Corporations Act 2001

8. Business Names Registration Act 2011

9. Business Names Registration (Transitional and Consequential Provisions) Act

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2011

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10. National Consumer Credit Protection Act 2009, and

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11. Medical Indemnity (Prudential Supervision and Product Standards) Act 2003.
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 Detail other processes the client will need to undertake in order to achieve their
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financial goals, such as:

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- Personal investment strategies

Some strategies can be considered as personal investment for example renting to yourself:
When an owner purchases the property of his or her business in a properly structured, arm’s-
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length transaction, the tax benefits usually are also transferred. What may have been a largely
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wasted depreciation deduction for the business becomes an income-reducing benefit for the
new owner. Also helping reduce the owner’s personal taxable income are the interest
payments for the funds borrowed to make the purchase.
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Offsetting the deductions, which may be far more valuable to the owner than to the business
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itself, is the income from the payments made under the terms of that lease. Rarely do the
required “fair market” lease payments made by the business offset the expenses of owning,
repairing, and maintaining that property. In other words, a loss is available to offset the
owner’s income from other sources.

- Business registration

To register your business name you have to follow:

1. Go to ASIC Connect and log in to your account.

2. If you don't have an ASIC Connect account, find out the steps to register.

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 3. If you're logging in for the first time, make sure you say 'no', you don’t have a
current business. You don't need an ASIC key to register.

4. Select the Licenses and Registrations tab at the top of the ASIC Connect page.

5. Select you would like to register a business name from the drop-down box.

6. Read the information and tick the boxes. Select get started.

7. Select the relevant ABN option, enter your ABN and select next. You must
enter your ABN without spaces.

8. Enter the proposed business name exactly as you would like it to appear on our
register. Business names are case sensitive.

9. Select the registration period.

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10. Enter the proposed business name holder details.

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11. Enter the addresses of the proposed business name.

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12. Confirm the eligibility to hold the proposed business name.
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13. Review your application. Make sure your business name is spelt correctly.

14. Complete your declarations.

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15. Make your payment.

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16. If you don't pay within 10 days, your application will be cancelled and you will
need to reapply.
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17. Confirmation.
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- Insurance needs
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Having the right insurance will help protect your business and minimise its exposure to risk.
This may include insuring your business, your income and your commercial risk. Also,
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Insurance options vary depending on your business type and exposure to risk, but can include
insurance for:

1. General and Third-party liability - it covers general mandatory liability, which

is directly related to economic activities, to both third parties and company’s
own clients in case of personal injuries or property losses.

2. Superannuation trustee’s liability - covers against actual or alleged breaches of

trust or law, neglect or misleading conduct with respect to a super fund.

3. Investment managers insurance (IMI) – covers breach of duty, directors and

officer’s liability claims and fraud.

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 4. Commercial crime – covers theft, extortion and fraud from internal employees,
external sources or a combination of the two. This insurance can also cover
costs associated with data restoration, investigation costs and lost interest.

5. Professional indemnity insurance – covers potential damages relating to

negligence or breach of duty created by an error, omission or act during the
delivery of professional services.

6. Personal whole life insurance.

7. Workers compensation. - Insurance is mandatory if you have employees.

8. Building and contents.

 Finally, detail strategies to put in place to ensure the above requirements are met

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Relevant legal and financial requirements:

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1. Consumer Affairs Act

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2. Consumer Credit Code
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3. Contract law

4. Corporations Act
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5. Financial Services Reform Act (FSRA)

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6. Industry codes of practice

7. National Guarantee Fund rules

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8. Privacy Act

9. Relevant financial association's business rules and codes of practice

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10. Taxation Act

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11. Trade Practices Act

Detail other processes the client will need to undertake in order to achieve their financial
goals, such as:

1. Personal investment strategies

2. Business registration

3. Insurance needs

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 4. Tax issues / requirements

5. advertising and marketing

6. administrative procedures

7. complaints and dispute resolution procedures

8. IT and administrative systems

9. policies and procedures in relation to client service

10. Product or service development.

Detail strategies to put in place to ensure the above requirements are met

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1. Planning,

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2. Coordinating,

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3. Directing,
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4. Analysing or Controlling.

Part 2:
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This report provides all the information given in the interview with client Anthony.
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The time to take to complete part 1 was it by deadline.

How specific was your questioning process? Did you ascertain all relevant financial
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requirements / goal of the client?

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Answer: The questioning process was asked two questions, as first are what are the financial
objectives and May you tell me about the relevant legal and financial requirements that you
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will need to be considered in order to achieve your specific objectives.

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Yes, ascertain all relevant financial requirements / goal of the client. The customers’
objectives are to decrease expenses by 5%, to increase revenue by 10% annually and to
increase net profit by 10% annually.

How detailed was your report?

Answer: For the detailed of the report was provided not clearly about the detail of Personal
investment strategies, Business registration, Insurance needs and Tax issues / requirements.

Were the strategies set realistic and did they meet the client’s requirements? If not, what did
you neglect to report on?

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 Answer: Yes, the strategies were set realistic.

Second report “How to ensure the client’s needs are being met?”

Date: 4/26/2018

Time for review: 10 Minutes

Objectives: To liaise with the client and undertake a business needs analysis.

The importance of constantly reviewing a client’s financial position / goals

The financial objectives of the client are:

Detail of financial needs information which customers need to determine your financial
direction and requirements. List of the financial objectives of the client are:

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1. Tax liability reduction goals

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2. To decrease expenses by 5%

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3. Wealth accumulation
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4. Asset development

5. To increase revenue by 10% annually

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6. To increase net profit by 10% annually

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Identify relevant legal and financial requirements that will need to be considered in order to
achieve the client’s specific objectives
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1. Consumer Affairs Act

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2. Consumer Credit Code

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3. Contract law
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4. Corporations Act

5. Financial Services Reform Act (FSRA)

6. Industry codes of practice

7. National Guarantee Fund rules

8. Privacy Act

9. Relevant financial association's business rules and codes of practice

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 10. Taxation Act

11. Trade Practices Act

Detail other processes the client will need to undertake in order to achieve their financial
goals, such as:

1. Personal investment strategies

2. Business registration

3. Insurance needs

4. Tax issues / requirements

5. advertising and marketing

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6. administrative procedures

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7. complaints and dispute resolution procedures

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8. IT and administrative systems
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9. policies and procedures in relation to client service

10. Product or service development.

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Detail strategies to put in place to ensure the above requirements are met
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1. Planning,

2. Coordinating,
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3. Directing,

4. Analysing or Controlling.
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Review the feedback given

Discuss any areas that were not covered sufficiently

- Areas that were not covered sufficiently are Personal investment strategies, Business
registration, Insurance needs and Tax issues / requirements.

How can these be rectified?

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 - The client needs to explain the detail of Personal investment strategies, Business
registration, Insurance needs and Tax issues / requirements.

Is more information needed?

- Yes, that is need more information

Have there been changes in the client’s financial requirements / position? If so how can
strategies are adjusted to incorporate these changes.

Yes, the client’s financial requirements have been changes. Strategies are adjusted to
incorporate these changes is financial planning and monitoring plan.

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