Ron, a chartered accountant and owner of Ronald Smith & Co with his wife Christine speaks openly on how he chose his career, his time in Glasgow and the beginning story of opening a small business including their forced diet of frozen pies!
Interview Video Highlights
Duration: 06:51
Full Interview conducted and compiled by Garrett Smithson
Why did you choose to be a Chartered Accountant? It all started back in the mid 1970’s working for a firm called Wormald International, at that stage I had almost finished my economics degree and I was working as a Customer Manager Accountant.
Then one day in walks a bunch of guys who called themselves Auditors, they were also Chartered Accountants. They would take over the boardroom and tell the Company Secretary what to do. Whereas I would have to make an appointment and I thought, so these guys have a bit of grunt, so I stumbled upon it by accident. I finished my degree and did my professional unit and became a Chartered Accountant.
I then worked for a number of large accounting firms after that. One of my favourites was Touche Ross and part of the deal was after 3 years and you passed all your professional exams, they would give the opportunity for an overseas posting. Unfortunately I got the short stick and got posted to Glasgow. I didn’t know what to expect but I had one of the best times of my life, the Scots people were wonderful to work with and very optimistic.
After that I wanted to branch out into other areas of accountancy. When I was with Touche Ross I worked mainly in the field of audit investigations. After leaving there I worked with some boutique tax practices, one of them was with Bruce Davis.
Bruce used to like doing tax returns for film stars, politicians and other types of famous people. A couple of the movie stars we did tax returns for were Judy Davis and Mel Gibson, which was interesting.
After that I did what you call litigation support. This is where you support Lawyers to help them with their cases, it is very interesting work. It’s also called forensic accounting.
How & why did you decide to open your own business?
Well, one Sunday night over a bottle of red wine with my wife, I just decided to set up my own business. The next day I resigned from my job as litigation support accountant.
Sometimes you get that point in your life when you say I have to go out and do something for myself. There’s no one you can really ask to make the decision you just have to go for it. It’s very important to plan for the rest of your life, because that’s where you’re going to spend it.
I started out with 3 clients, my wife, my mother and myself. That’s where it all began. 11 years ago and gradually the practise grew to where we have about 800 clients.
I fondly remember referring to my first office as a wardrobe on steroids. Early on it was a case of walking the streets talking to lawyers, insurance brokers, bankers etc.
Michelle, our first employee is still with us, that’s about ten years. Millranta for about nine, Hoy about six and Tammie, five.
What is now your core business?
We deal with Small Business Enterprises; we audit small public listed companies, audit subsidiaries of larger companies and all types of individuals that we try to help.
Why did you Choose Hornsby to set up business?
I live close by, it’s like having a home office. I used to work in the city and got sick of travelling for at least 2 hours a day, I just didn’t want to do it anymore.
Are all your clients within Hornsby Shire?
Oh no, not at all. We have clients from Palm Beach down to Peakhurst and Parramatta, often referred to as the “P trail”. We have clients up and down the NSW coast, as well as clients in Japan and Denver USA.
This not only bringing business into the shire, (and keeping it), The Chamber is focussed on keeping that business here and encouraging business to work with other businesses and people in the shire.
What are the some of the trials you’ve overcome during the years? There have been a few times when it’s been tough. An example is when you have to make a decision to put on another staff member. You have to make sure that you’ve got enough work and cash follow to pay them.
There have been a few times when it’s been tough. An example is when you have to make a decision to put on another staff member. You have to make sure that you’ve got enough work and cash follow to pay them.
One time in 1999/2000 I had a huge amount owing in debtors and only had about 20 dollars in pocket. The times were so tough sometimes that I would go around to Coles and buy frozen pies for lunch and sometimes dinner when I worked late.
Sometimes you just got to do it tough. It’s always important to makes sure you’ve got enough cash follow to pay your creditors, to pay your staff, unfortunately you have to eat humble pie occasionally and put the extra effort in. It’s worth it in the end.
Someone once asked me why didn’t you go into your own business a lot sooner? At first you don’t have a lot of confidence to go out and do it. But when you do, you look back and you think, in the first year I never worked so hard, for so little, but enjoyed it so much. It was fantastic.
What are the advantages in doing business in Hornsby Shire? Hornsby has a lot of potential for growth. You’ve got 2 new major railways coming there. Westfield pumping over 400 million dollars into the shopping centre there, it’s just got to go ahead. So there is a lot of potential, and I want to be a part of it.
This is where it will be happening. Certainly it’s well on the way, I think that The Chamber is very lucky to have people like Greg Bepper who are very enthusiastic and are certainly pushing it to make Hornsby a vibrant business hub.
I think Hornsby will grow even further to become one of the major hubs in Sydney metro.
Why are you a member of Hornsby Chamber? Firstly, the thing I really enjoy is mixing with other business people, because I regard us, so to speak, as in the trenches. And it’s great to hear what other people are doing and what they think. It’s always a chance to hear what‘s happening generally within the community.
I love the comradeship; you can keep your finger on the pulse about what’s happening to people and businesses around Hornsby. There are a lot of influential people at the Chamber. And I like to hear about what they have to say about what is happening in Hornsby.
What advice would you give anyone thinking of opening a small business? Think about it very seriously because for most people when it comes from being employed to running their own business, it’s quite a change. It’s important to accept you are the technician, the entrepreneur and the administrator all wrapped up in one.
So you have to wear many, many hats and from an accounting viewpoint and business viewpoint; it’s very important to keep your finger on the cash flow pulse.
Ronald Smith & Co
Suite 101
10 Edgeworth David Ave
Hornsby NSW 2077
Australia
Phone: 9477 1650 Fax: 9477 6649
Email: ronald@rsmithco.com.au
Website: www.rsmithco.com.au
Chamber Office
Room 7 1st Floor Willow Park Community Centre 25 Edgeworth David Avenue Hornsby, NSW 2077 Australia
Postal Address: PO BOX 1622 Hornsby Westfield NSW Australia 1635
Hornsby Chamber of Commerce Monthly Networking Meetings
1st Tuesday of the Month February - November Venue: Shamrock Inn, Asquith Leagues, 37 Alexandria Parade Waitara NSW Australia Times: 6.00pm - 6:30pm (networking) 6:30pm - 8:00pm (meeting) Cost: Members & Guest FREE, Non-Members $35.00 AUD
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