The most confusing area for small business owners can be understanding what is actually happening in their accounts. Product based industry The biggest challenge that product based industries face is the actual product they sell – stock. The key element to understanding the difference between your profit and your cash flow lies in a number […]
Archives for 2011
Why is there a difference between my Profit and Loss Statement and my cash flow?
September 27, 2011 by Leave a Comment
The Missing Link Syndrome
September 20, 2011 by Leave a Comment
Did you know that more than 87% of small business failures are because they do not understand the money side of their business? That is a scary statistic isn’t it. And one that should not be taken lightly! This statistic is the basis of my ‘Missing Link Syndrome’. Most business owners do not have a […]
Why doesn’t my accountant give me more information on how my business is performing?
September 13, 2011 by 1 Comment
Your accountant’s responsibility is to tie your figures together for the year, to make sure that you’re complying with all legal requirements in terms of the Australian Securities and Investment Commission (ASIC) and also to ensure you’re deducting the correct amounts and paying the right tax. So, your accountant’s core focus in terms of what […]
How to understand what your accountant is saying!
August 30, 2011 by 1 Comment
All professions have their own jargon and accountants speak a language foreign to most business owners called ‘accountanese’. Just the same as website designers and IT guys speak a language I call ‘ITgeekspeak’. Do you sometimes feel overwhelmed when you leave your accountant’s office thinking, ‘Why can’t they just speak English?’ You have just spent […]
How to choose a good bookkeeper
August 23, 2011 by 1 Comment
In any business, the bookkeeper is the source of all information relating to the business’ performance. So, if you have a bookkeeper who is not allocating expenses correctly or is not accurately keeping track of everything within your business then the information you draw out in terms of your Profit and Loss Statements and other […]
