Title: CEO
Organisation: Melbourne Tigers Basketball Club
Location: Melbourne
IPA status: FIPAWhy did you take up accounting studies?
I arrived here in 1979 from the Ukraine. My qualifications as a pharmacist weren’t recognised here, so my wife Irene, who was studying as an accountant, suggested I should study with her.
How did your career start?
My first job was as a junior auditor. It was very tedious work. At that time you had to manually check additions, postings from journals to ledgers, to sight invoices – all the nuts and bolts rather than preparing final reports or putting strategy in place. In my next jobs, I gained exposure to more detailed accounts preparation and tax reporting. More importantly, I learnt to use a computer and the first accounting packages, while expanding my knowledge and honing my skills.
When did you go into your own business?
I started running a part-time practice in 1988 while working full-time in Saffer-Barron and Associates, an accounting practice. I am appreciative of their support for this. We respected each other enough that there was no conflict over clients.
I wanted to have a business I could develop and influence my own way. Eventually I had built up my practice enough to become fully self-employed. In hindsight, I should have done this two or three years earlier than I did, and not have continually worked 12–14 hour days!
What led to setting up Dodo Australia?
My cousin Larry Kestelman, a financial consultant, and I set up our first internet venture under the brand KBS Internet in 1999. With GST coming I was panicking about seeing my clients five times a year rather than once, so the idea came to give them an internet connection and a GST-compliant cashbook so they could email information to me and I could prepare and lodge their BAS without actually having more physical appointments with all my clients. But KBS was not a successful model for an internet company, it almost sent us bankrupt! We realised a limited client base (our accounting clients) restricted our potential growth and we saw the opportunity to provide an expanded service to a wider target market and Dodo was born.
A significant key to our business plan was to increase our marketing activity. Unfortunately our first TV commercial for Dodo went to air on 9 September 2001, two days before the events of September 11. But we were able to gather momentum as we were the first internet service provider to offer a flat rate to regions matching city prices. That won us many customers, especially in regional areas, because other ISPs were penalising them with super-high charges. In addition to internet Dodo expanded its range of telecommunication services, including advances in internet technology and mobile and home telephones, before recently adding electricity and home security to the various products available. Shortly we will be launching gas, which will mean Dodo can provide a full suite of products allowing people to connect with one phone call when changing address or suppliers.
You recently took on the role of CEO of Melbourne Tigers. What does this entail?
The Tigers Basketball Club is a huge part of my life; the whole family have been members for 20 years. Larry and I had been involved as sponsors and at board level, but when the opportunity to become majority shareholders and Chairman and CEO arose we gladly took on the responsibility. We love the game of basketball and the club itself and look forward to restoring the club to its former glory.
The CEO role is a hands-on, full-time job. The first step was to increase our internal team from three employees to seven, and integrate them with Dodo staff, increasing the marketing, IT, merchandise and legal resources available.
At 81 years, Melbourne Tigers is the oldest club in the NBL. I feel that I am a custodian of something sacred which sooner or later will be passed on. I want to leave a legacy where the club would march on independent of individuals, with systems and relationships and practices so one person can walk out and another person can step in and it does not affect the club.
What’s your accounting philosophy?
Accounting is the art of presenting real life on two pages: a year of history (P&L) and the current state of affairs (balance sheet). As an accountant you need to ask, is the profit and loss a true reflection of the events that transpired within the life of that business that reporting period? You must also ask is the balance sheet a true reflection of the state of affairs on the reporting date?
