As an RTO under the current legislation, you may never be required to prepare a Tool, though you are expected to always be financially viable and prepare a Tool at any time on ASQA’s request. The Tool can be seen as an onerous and difficult compliance requirement; knowing what to expect can make it easier.
Here are FIVE things to consider:
- Have a business plan
- The Tool is primarily a forecast of operational and financial information
- This forecast is based on the business plan
- The Tool and the business plan must be in sync
- It is Financial Viability
- It is not how much cash you have in the bank
- It is not about how much profit you make
- Viability is a broader concept, which comes via various pathways
- It is unique
- There are tricks to the Tool
- It is prescriptive it has its own format; you need to provide exactly what is required
- You cannot approach the Tool as just another forecast
- It is not standard audit evidence
- It is not a document you will already have and can just provide to ASQA
- It is a project directors and accountants will generally liaise and work on together
- It represents the intended future of your business
- Beneficial Process
- It is a rigorous process that ensures directors consider their RTO’s future
- It causes financial and operational evaluation and re-evaluation of the business
- A Tool is something all businesses should do, it would prevent many business failures and the subsequent financial heartache
RTO Accountants have worked and signed off on 100’s of successful Tools. We have a proven and systematic approach to the Tool to ensure a compliant Tool and reduce the work required from the directors in the process.