Many business owners fail to set a budget and don’t consider this to be important for them. They either think they are not big enough to need one or they have one ‘in their head’. So, why is it important for every business to set a budget? A budget is the success plan for a […]
How do I set a budget?
October 26, 2011 by 1 Comment
How businesses set and follow budgets is obviously very important. Setting a budget can actually be easier than you think. You need to look at the past three years within your business and ask yourself: how did the business do in terms of revenue and expenditure? Look at trends within your business. What regular payments […]
How do I increase profit with limited time available?
October 19, 2011 by 2 Comments
If your small business falls under the service based industry category and are charging by the hour, increasing profit can often present challenges. There are two aspects to profit: the first is your income, and the second is the expenses you deduct from that income to get your profit. I spend a lot of time […]
What is the difference between a bookkeeper and an accountant?
October 11, 2011 by 1 Comment
There is quite a difference in what your bookkeeper can do for your business and what your accountant will do for your business. A bookkeeper deals with the source documentation of your business. They record data for payments and receipts, they reconcile your bank account, in some cases they can deal with your customers e.g. […]
Do you know what your financial position is going to be like in three months’ time?
October 4, 2011 by 1 Comment
Most business owners do not know what their financial position will be next month let alone three, six or twelve months in advance. What impact would knowing where your business will be financially in say, three months’ time have on your business? Here are five steps to get you on the road to foretelling the […]
Why is there a difference between my Profit and Loss Statement and my cash flow?
September 27, 2011 by Leave a Comment
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 […]
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 […]
