Business Structure: Chapter 12 - Your Annual Business Structure Review Checklist
Written by: Melissa Cunliffe (CA)
Twelve questions every business owner should ask every year
"The best time to review your business structure isn't when something has gone wrong. It's while everything is still going right."
Congratulations.
If you've reached this chapter, you've already done something many business owners never do. You've stopped. You've taken time to think strategically about your business. You've looked beyond this year's tax return. You've considered where your business is heading. You've started asking better questions. That alone places you in a strong position.
Now it's time to turn everything you've learnt into action.
The purpose of this chapter is simple. To provide you with a practical checklist you can revisit every year. Think of it as an annual health check for your business structure.
Annual Business Structure Review Checklist
1. Has my business changed significantly during the past 12 months?
Consider:
Turnover
Profitability
Employee numbers
Business activities
New locations
New products or services
Growth doesn't automatically require structural change. But it should always trigger a review.
2. Have I purchased—or am I planning to purchase—major assets?
For example:
Commercial property
Investment property
Plant and equipment
Motor vehicles
Share investments
Other investments
Before purchasing, ask: "Who should own this asset?"
That one question could influence your financial position for decades.
3. Have my personal circumstances changed?
Perhaps you've:
married
separated
had children
welcomed grandchildren
become an empty nester
changed your retirement plans
Business structures should support your family—not simply your business.
4. Has legislation changed?
Every year brings change.
Federal Budgets.
ATO guidance.
Court decisions.
Superannuation.
Payroll tax.
Division 7A.
Trust taxation.
Good planning adapts. It doesn't ignore change.
5. Is every entity still performing a clear purpose?
Take a piece of paper.
Write down every entity in your business group. Next to each one write why does this entity exist.
If the answer isn't immediately obvious, it's worth reviewing. Every entity should have a clearly defined role.
6. Have I reviewed my trust deed, shareholder arrangements or partnership agreement?
These documents should never be filed away and forgotten. As your business evolves, your governing documents should evolve too.
7. Are company funds and personal funds being kept separate?
If you operate through a company, ask yourself:
Am I treating company money appropriately?
Do I understand my Director's Loan Account?
Have I discussed any significant transactions with my adviser?
Good habits today prevent expensive problems tomorrow.
8. Have I started thinking about succession?
You don't need to be retiring next year. Succession planning should begin long before retirement. Ask yourself:
Who will eventually lead the business?
How will ownership transition?
What conversations should begin now?
9. Am I still comfortable with my current level of commercial risk?
As wealth grows, your attitude to risk often changes.
Ask yourself: "Has my structure kept pace with that change?"
10. What are my biggest goals over the next five to ten years?
Write them down. Don't think about tax. Think about life. Business. Family. Lifestyle. Legacy.
Your structure should support those goals.
11. Have I had a Business Structure Review in the past 12 months?
Not a tax return meeting. Not a BAS discussion. Not an end-of-year tax planning appointment.
A dedicated Business Structure Review. One conversation. Focused entirely on the future.
12. If I were starting my business today…
...knowing everything I know now...
Would I build it the same way? This is perhaps the most powerful question in the entire guide. Answer it honestly.
If your answer is: "Yes."
Fantastic. Your review has provided confidence.
If your answer is: "Probably not."
That's equally valuable. Because now you know it's time to begin the conversation.
The Business Structure Scorecard
Give yourself one point for every "Yes."
Your Score
8–10 Yes answers
Excellent. Continue reviewing annually and remain proactive.
5–7 Yes answers
Your structure may still be appropriate, but there are likely opportunities worth discussing.
Below 5 Yes answers
Now is an excellent time to arrange a comprehensive Business Structure Review. Not because something is wrong. Because planning creates options.
Your Business Structure Roadmap
Every business owner starts somewhere. Most follow a journey similar to this.
Notice something important. The objective isn't to reach the bottom. The objective is to ensure your structure continues supporting whichever stage you're currently in.
Final Thoughts
When I began writing this guide, I didn't set out to write about tax. I set out to write about better decisions. Because after many years working with business owners, I've realised something.
The businesses that achieve long-term success aren't necessarily the smartest. They aren't always the biggest. They don't always pay the least tax. They're simply the businesses that consistently ask good questions before making important decisions.
They plan.
They review.
They adapt.
They seek advice early.
Most importantly...
They never stop learning.
If this guide has encouraged you to pause and think differently about your business structure, then it has achieved exactly what I hoped it would.
Remember...
There is no perfect structure. Only the structure that best supports your business today. Your responsibility is to ensure it continues supporting your future tomorrow.
Book a meeting with 3P's Future Accounting to discuss how this approach can support your business, family and long-term goals.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
