Completing the Financial Viability Risk Assessment (FVRA) Tool can be overwhelming, but avoiding common mistakes can make the process smoother. As an accountant, I’m here to guide you through the top three mistakes and how to avoid them. Let’s get started.
Mistake 1: Not Maintaining Correct Financial and Non-financial Information
The most common mistake I see is incomplete financial and non-financial information. Existing businesses must readily have bookkeeping reports, such as Profit and loss statements, Balance Sheets, and Cash Flow Statements. This ensures that the correct data is available to complete the FVRA Tool. Additionally, non-financial information must also be accurate and available, such as historical enrolments for each course, student pre-paid fees, and staff-related data.
How to Avoid It:
Keep your bookkeeping software up-to-date and ensure all financial reconciliations are completed.
Maintain detailed non-financial records related to students and staff to support your submission.
Mistake 2: Misalignment Between the Business Plan and the FVRA Tool
The financial information in your Business Plan must align with the FVRA Tool. For example, your financial projections, funding sources, and key assumptions in the Business Plan should match the numbers and calculations entered in the FVRA Tool. Any discrepancies can raise questions about the credibility of your submission.
How to Avoid It:
To ensure that your Business Plan aligns seamlessly with the FVRA Tool, double-check that your financial projections and operational details are consistent across both documents to present a credible application.
Mistake 3: Failing to Keep ATO Lodgements, Superannuation, and GST Obligations Up-to-Date
The regulator places significant importance on compliance with ATO lodgements, superannuation, and GST obligations. If these are overdue or inconsistent, it can indicate financial mismanagement and negatively impact your risk assessment.
How to Avoid It:
Before starting the FVRA Tool, ensure all your ATO obligations, including BAS, PAYG Withholding, and GST lodgements, are current. Confirm that employee superannuation contributions have been made on time.
You can improve your chances of a successful application by providing complete information, ensuring alignment between your Business Plan and the FVRA Tool, and keeping your statutory lodgements current.
Feel free to contact us for expert help with the FVRA Tool.
Comments