BTS 19: How to run a smart transport operation

By: Ruza Zivkusic-Aftasi


Financial fitness seminar provides business insights

BTS 19: How to run a smart transport operation
Dane Skinner

 

Transport operators who fail to keep financial records and have no cash flow are more likely to go belly up, according to BCR Advisory senior manager Dane Skinner.

Skinner, who specialises in business recovery and insolvency, gave an insight at the KPMG Insights Centre into the common mistakes that transport businesses make.

He claims that those who have no analysis of gross margins and overhead expenditure are set for failure.

Despite its name, a voluntary administration is not all doom and gloom, he adds.

Four out of the four transport voluntary administrations he’s dealt with have been successful, with all companies still trading today.

And while most need help to overcome the debt hurdle, many large and successful businesses have been through something similar, he says.

"A voluntary administration is a legitimate way to restructure a business," Skinner says.

"It offers a path to future growth and prosperity."


Read liquidator Darryl Kirk's insight into transport insolvency, here


Dangerfield Accounting tax agent Daryl Dangerfield says complete insurance coverage is important to ensure a business does not incur any losses through claims brought against it.

Companies need to follow a consistent accounting process, such as a current accounting software package, to help keep track of daily data, link all banking accounts directly to the accounting package and analyse performance targets against real finance.

"Not having up to date figures puts your business in a vulnerable position," Dangerfield says.

"Proactive decisions cannot be made without good information."

Operators who have identified a succession strategy before retirement are most likely to future proof their business, he adds.

 

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