Business owners ignoring personal finance
Nearly two out of three mid-sized private business owners do not have a handle on their own personal financial situation, accounting firm William Buck said.
A series of one hour interviews by William Buck found business owners across all sectors have not looked at issues like personal insurances and protecting their personal assets from business risks.
"Too many business owners are so focused on growing their business that they neglect their own personal financial plan," director of William Buck NSW, Scott Harrington said.
"A common issue we find is a business owner that sees the capital value of their business as their retirement fund. The idea is to build up the value of the business and then sell and retire. The pace of change in many industries as well as the vagaries of economic and market conditions can make this a high risk strategy."
Scott recommended that business owners should have a proper structure to hold investment and personal use assets, review their personal insurance position, make sure debt is structured in an effective way, and design an exit of family succession plan even if this is in the longer term.
Respondents get a report with observations, best practice indicators and recommendations at the end of interviews.
AUTHOR
Malavika Santhebennur
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