Bendigo Accounting and Finance

No Surprise to me at all , a prime example when businesses losses their focus and purpose and focus on money only- they are suppose to be leading by examples !!!

Treasury threatens to break up big four firms KPMG, EY, Deloitte and PwC as scandals plague the consultancy sector It’s been a rough couple of years for Australia’s big four consultancy firms if negative news headlines are anything to go by, with a series of scandals rocking the lucrative sector.

# 🍔 **The Burger Shop Story: Where the Accountant Walked In…**

# # 📍 Scene 1 — The Shop

```
🍔🍟 BENDIGO BURGER CO
🥤🥤 Fresh Burgers & Cold Drinks
```

A busy little shop sells:

* 🍔 Burgers
* 🥤 Cold fizzy drinks

The owner smiles proudly:

> “I sell burgers for $12 and drinks for $4… I think I’m making money!”

***

# # 👨‍💼 Scene 2 — The Accountant Arrives

The accountant walks in with a coffee ☕

> “Do you actually know your costs?”

The owner laughs:

> “Easy! I just divide everything evenly.”

***

# # ⚡ Scene 3 — The First Mistake (Power Bill)

```
💡 Power Bill = $1,000
Divide equally:
🍔 = $500
🥤 = $500
```

The accountant shakes head 😄

> “No no… the burger uses more power!”

# # # Why?

```
🍔 FREEZER ❄️
🍔 FRIDGE 🧊
🍔 COOKING 🔥
🍔 PREP 👨‍🍳

🥤 Just:
🥤 Drink machine 🥤
```

✅ Fix:

```
🍔 gets MORE cost
🥤 gets LESS cost
```

***

# # 🏢 Scene 4 — Now It Gets Interesting (Rent & Insurance…)

The owner asks:

> “Okay smart guy… what about RENT???”

```
🏢 Rent = $5,000
🛡️ Insurance = $500
```

The accountant smiles 😏

> “Ahhh… now you’re asking the real questions.”

***

# # 🧠 Scene 5 — The Big Realisation

The accountant draws this:

```
TYPE 1 COSTS (Direct / Usage Driven)
----------------------------------
🔥 Cooking
⚡ Power
👨‍🍳 Labour

👉 Depends on burgers vs drinks

TYPE 2 COSTS (Business Costs)
----------------------------
🏢 Rent
🛡️ Insurance
📞 Admin

👉 Belong to the WHOLE business
```

***

# # ⚖️ Scene 6 — So How Do We Split Rent?

The owner:

> “So… how do we split it?!”

The accountant gives 3 options:

***

# # # ✅ Option 1 — Simple (Per Item)

```
Total items sold = 10,000

Rent per item = $5,000 ÷ 10,000
= $0.50 each

🍔 = $0.50
🥤 = $0.50
```

✔ Easy
✔ Practical

***

# # # ✅ Option 2 — Revenue Based

```
🍔 sells for $12
🥤 sells for $4

👉 Burgers carry MORE rent
```

✔ More realistic

***

# # # ✅ Option 3 — Space Method

```
Kitchen = 70% → 🍔
Drink area = 30% → 🥤
```

✔ More accurate (advanced)

***

# # 😂 Scene 7 — The Accountant Joke

The accountant leans back and says:

> “This is where it gets fun…
> because rent doesn’t belong to a burger or a drink —
> it belongs to the business.”

The owner laughs:

> “So there’s no perfect answer?”

The accountant:

> “Exactly… which is why accountants argue about this and end up single.”

***

# # 🍔 Scene 8 — Final Cost Example

Now they calculate properly:

```
BURGER 🍔
----------
Ingredients: $2.00
Labour: $1.50
Power: $1.80
Rent: $0.70
----------------------
Total Cost: $6.00

DRINK 🥤
---------
Ingredients: $0.80
Labour: $0.20
Power: $0.30
Rent: $0.50
----------------------
Total Cost: $1.80
```

***

# # 💥 Scene 9 — The Big Discovery

The owner realises:

> “Wait…
> My burgers are making LESS profit than I thought…
> and my drinks are actually SUPER profitable!”

***

# # ✅ Final Lesson (The Moral)

```
❌ Don’t split costs evenly
✅ Allocate based on reality

🔥 Use:
- Usage → for power, labour
🏢 Use:
- Broad allocation → for rent, insurance
```

***

# # 🧠 One Line You Can Use

> “Some costs belong to the product, and some belong to the business — knowing the difference is what makes your numbers accurate.”

***

The top Tax offenders in Australia are not Australian - these companies have paid almost nil tax in Australia !!!!!!!!!!!!!! imagine if we can just change the system so that do pay income tax flat rate of ten % !!! look the saving for our country !!! it will be only be Fair 1. There is material tax leakage

A large share of multinational revenue is not taxed in Australia
Your model suggests ~85–90% of revenue is offset or shifted

✔️ 2. The system enables this (legally!!!!!!!!)

Transfer pricing
IP licensing
debt loading
capital allowances

👉 These are designed features, not illegal loopholes!!!!!

✔️ 3. Advisory firms are part of the system (but part of the problem as they are more interested in helping the client than their own country as this is how they get paid).

“Large accounting and advisory firms play a central role in designing and implementing multinational tax structures, within the legal framework.”

Interesting Data I was looking at , it does show that Australia property ownership needs some work on " residential "

Financial success is not about how much money a country has — it’s about how well it is controlled, reported, and used.

This is exactly why:

Countries like Australia focus on
✅ budget control
✅ efficiency
✅ tax structure

Because:
Bad controls + high income = poor outcome
Good controls + moderate income = strong outcome

done and dusted within 3-5 years ! Hypothatical workout and not political and or fully studied one

Not as bad as what people think !

Savings ideas

* Saving: **$10 per day**
* Time: **10 years**
* Interest rate: **5% per year (compounded daily)**

***

# ✅ Simple Summary

| Item | Amount |
| ---------------- | ----------- |
| Total saved | $36,500 |
| Interest earned | $10,850 |
| **Final amount** | **$47,350** |

***

# 💡 Key Insight

* Around **30% of your final balance is interest**
* This shows the power of:
* **Consistency (daily saving)**
* **Compounding over time**

Just tell me 👍