Accounting Services and Advice for RTOs
Author │ Simon Liddicoat – MAS Tax Accountants Duncraig-Warwick
Accounting for Registered Training Organisations (RTO) are complex in nature, due to the technicality of accounting activities and the mandatory compliance regulations. The Training Accreditation Council (TAC) Western Australia, is the regulatory body providing an oversight function for RTOs; whom are nationally recognised and quality-assured training providers. To qualify as an RTO, stringent compliance is required with the Australian Qualifications Training Framework (AQTF) to ensure eligibility for state and territory funding. While is it essential to seek advice from an expert RTO Accountant Perth, you can still build a fundamental knowledge of the accounting and compliance requirements for any effective RTO.
Pre-Registration
Your new RTO is required to meet the Financial Viability Assessment Guidelines outlined by the TAC. The requirements can be onerous and complex. At MAS Tax Accountants Duncraig-Warwick, we have a firm and up-to-date knowledge of these requirements. Our RTO Accountant Perth can assist you to understand and meet the required standards for accreditation.
You will also need to understand the business structures available to you and the pro’s and con’s of each of them. This something that MAS Tax Duncraig-Warwick can assist you with, as we have extensive knowledge and experience with business structures.
Ongoing Post Registration
Your RTO will continue to be monitored by the TAC and your compliance with audits and other financial indicators is essential. In order to operate efficiently and to meet the ongoing compliance issues imposed by the TAC, you will need to consider several financial statements and information. These include:
Income Statement and Balance Sheet
The Income Statement and Balance Sheet are the two fundamental financial statements needed to make major business decisions. This information can assist businesses to monitor their financial situation and predict their future positon, which will affect the decision making of the organisation. Your RTO Accountant Pert will require a correct and up-to-date records of these statements to be able to provide the very best advice.
The income statement monitors the revenue and expenses, determining the profitability for the period in question. While the balance sheet gives an overview of the financial position calculating the equity the RTO has at a particular date.
Other reports can be customised in order to understand the performance of different elements of your business, such as the corresponding locations, courses and activities.
Cash-flow Forecasts
At different points in time, your business will could experience either a cash surplus or deficit. You will need to understand and have a forecast timeline of these highs and lows in order to efficiently operate your business.
Cash-flow forecasts enable users to analyse the cash position of the business and manage their operations accordingly. During periods of cash surplus, it is advisable to pay debt down or reinvest. While during stages of cash deficit, you need to assess your options of collecting outstanding debts, taking out a bank loan or staggering payments made to creditors.
Additional Compliance
Depending on the location of the Training Programs being provided by your RTO (within WA only or outside of WA), additional obligations will need to be considered. These compliance standards may vary between businesses and industries, and it is best to speak with your RTO Accountant Perth. The above mentioned registration details are only the basic financial compliances that you will need to consider.
Simon Liddicoat CPA, Principal Accountant
For a consultation with an expert RTO Accountant Perth, please contact Simon at MAS Tax Accountants Duncraig-Warwick and arrange a time.
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