Many smaller business clients use separate entities, finance arrangements, leasing structures or hire agreements to manage commercial risk. On the surface, these arrangements may appear straightforward, particularly when assets are clearly owned by one entity or business. 

However, PPSA requirements can change how those arrangements operate when there is an insolvency event or a dispute over who has priority to an asset. For smaller practices, the issue is not always obvious at the point a structure is set up. It may only become urgent when a client is trying to recover machinery, vehicles, plant or equipment they assumed was protected. 

That is why PPSA risk is worth considering as part of regular client conversations, particularly for businesses that own high-value equipment, lease assets between related entities, hire equipment to customers, or supply goods under arrangements where ownership or security interests need to be clearly protected. 

Accountants do not need to become PPSA specialists, but they are often well placed to notice when a client’s commercial arrangements may need closer review. Raising the issue early can help clients seek the right advice before a problem arises.

“A short discussion now can be far better than trying to deal with a loss after an insolvency event.” 

In this episode of Small Firm, Big Impact Express, Simon Read CA, Founder and Director at PPS Advisory, explains why PPSA compliance matters for smaller practices and what can go wrong when the right steps are missed.

The episode is designed as a practical prompt for accountants who work with clients that hold, lease, hire, finance or supply business assets. It looks at where PPSA exposure can arise, why clients may misunderstand the level of protection they have, and how advisers can help identify potential issues before they become costly.

For smaller firms, the key takeaway is to build PPSA awareness into the right moments, such as when reviewing asset protection structures, advising on related entity arrangements, or working with clients that rely on plant, equipment or vehicles to generate income.

Listeners will come away with clear examples of the types of clients and arrangements that may need attention, along with a practical reminder to raise the issue early and encourage specialist advice where needed.

Resources and further reading:

• Learn more about Simon Read CA and PPS Advisory
• PPSA checklist for businesses selling goods on credit
• PPSA checklist for equipment owners, hirers and leasing businesses
• Visit the Smaller Practices Centre for general practical tools and guidance

View the transcript within the platform.