Why Managing Your Profit Margin is Crucial for Business Success

By |2024-02-21T11:59:23+11:0021/02/2024|Categories: Blog, Business growth|Tags: , |

Profit Margin vs Markup can be calculated and result in different outcomes  Profit margin and markup are separate accounting terms that use the same inputs and analyze the same transaction yet show different information.  Both profit margin and markup use Revenue and costs as part of their calculations. The main difference between the two is that a profit margin refers to sales minus the fee of goods sold, while markup is the amount by which the cost of good increases to get to the final selling price. Profit Margin needs to be healthy Understanding these two terms can help ensure that price setting is [...] READ MORE

Cashflow planning for small business during the holiday season

By |2024-02-12T16:50:35+11:0010/12/2023|Categories: Blog, Business growth|Tags: , |

The holiday season brings joy and celebration, but for small businesses, it can also bring challenges when it comes to cashflow planning Cashflow, the lifeblood of any business. Cashflow is even more crucial during this period. Small businesses are starting to experience delayed payments, reduced sales, and increased expenses due to safety measures and additional costs associated with remote work or implementing safety protocols. The holiday season brings slow down and couple with higher interest rates the economy is changingTo address these challenges, small business owners must adopt proactive cash flow management strategies. Between now and the 15th of January [...] READ MORE

Recording obsolete stock in your accounting system

By |2024-02-19T14:00:00+11:0003/07/2023|Categories: Blog, Business growth|Tags: , , |

Identifying and recording obsolete trading stock write-offs for a small business involves several steps. Its that time of year, when you should undertake you annual stock take. We suggest to be practical in your approach. Use scales and estimates for small items such as screws , widgets and small items. A practical approach - obsolete items. Here's a general guide on how to approach this process: Identify the stock items: Begin by reviewing your inventory records and identifying any old trading stock that needs to be written off. Look for items that are damaged, expired, obsolete, or unsellable due to [...] READ MORE

Gst at property settlement is a cashflow trap for those mum and dad developers.

By |2023-06-12T18:39:09+10:0012/06/2023|Categories: Blog, Taxation|Tags: , , |

GST at property settlement is a tax that needs to be deducted at settlement. It continues to catch out Mum and Dad developers walking the cashflow-type rope. Many are not aware that they will only have effectively 90% of the sale at settlement to play with. This can cause pain as interest rates bite and property prices decline in some areas. Since July 2018, you may need to pay GST at settlement if you are selling or buying new residential premises or potential residential land. How GST is paid for certain property transactions affects purchasers, suppliers, and their financiers. For [...] READ MORE

How can I make my small business successfull?

By |2024-09-23T22:00:07+10:0008/04/2023|Categories: Blog, Business growth|Tags: , |

How can I make my small business successful is something all business owners strive to do. The road to success is not always smooth, and there are obstacles to overcome. However, with the right strategies and mindset, you can achieve your goals and thrive in today's competitive marketplace. In this article, we'll explore some key tips and tactics that can help you take your small business to the next level. From defining your niche and target audience to creating a strong brand and building a solid online presence, we'll cover everything you need to know to make your small business [...] READ MORE

Should I Pay a Dividend from my company or Keep the Profits in My Company?

By |2023-07-06T05:50:43+10:0001/04/2023|Categories: Blog, Business growth, Services accounting for small business|Tags: , , |

‍ Dividend vs keeping the profits in retained earnings Should I pay a dividend from my company? When it comes to running a successful business, one of the most important decisions you'll have to make is what to do with your profits. Should you pay a dividend to yourself as the business owner, or reinvest the money back into the company? It's a question that many business owners struggle with, and there's no one-size-fits-all answer. We argue that paying dividends is a great way to reward the owners. Others believe that reinvesting profits is the key to long-term growth and [...] READ MORE

A Simple Business plan that works

By |2023-04-08T11:22:59+10:0025/03/2023|Categories: Blog, Business growth|Tags: , , |

Unveiling the Power of a simple Business Plan for small business is Your Blueprint to Success A Simple business plan for small business helps you dream big! Are you an entrepreneur or business owner aiming to achieve success in your ventures? Do you find yourself constantly facing setbacks and challenges that just make it a little harder hinder your growth? The solution is in the power of a well-crafted simple business plan that kicks goals. A small business action plan is a blueprint that outlines your goals, strategies, and tactics to achieve success. It is your roadmap to success and [...] READ MORE

Is an SMSF setup right for you?

By |2024-02-19T15:54:04+11:0021/02/2023|Categories: Blog, SMSF|Tags: , , , |

Deciding to implement an SMSF setup is something that needs a plan if undertaken.We are observing that our clients are taking the opportunity to review their Superannuation and retirement goals, The markets are changing, and people are beginning to plan for their retirement strategy. We are receiving several questions from clients asking whether, given the current market fluctuations of their investment in the superannuation, it is a great time to take charge of your own Superannuation. Some are evaluating if it is a great time to take control by setting up a new Self-Managed Superfund, commonly known as an SMSF. [...] READ MORE

Cost reduction and Maximizing Profit in Your Business

By |2024-02-19T15:39:40+11:0008/02/2023|Categories: Blog, Business growth|Tags: , |

Cost reduction by reducing expenses means great profits, right or wrong? What is Cost Reduction & Why Is It Important for Business Owners? Cost reduction is one of the most important aspects of running a successful business. It can help businesses save money and increase their profits. But doing it correctly will achieve great results for your bottom line. Expenses slashed for the sake of it may be detrimental. As a business owner, you need to be aware of different cost reduction strategies and how they can help you achieve your goals. By understanding the basics of cost reduction, you [...] READ MORE

Small business cashflow

By |2024-02-19T16:42:25+11:0026/07/2022|Categories: Blog, Business growth, Services accounting for small business|Tags: , |

Small business cashflow is so important. This is highlighted in this week's Accoutantsdaily article about cash flow. What's highlighted is an enormous gap for many small businesses. The last 2 years have highlighted major issues for small businesses and cash flow is one on top of the list. Small businesses have been plagued by closures and staff absenteeism due to Covid. This can account for why some businesses' cash flow is facing an uphill battle in recovery. But there is also a fundament lack of planning by some small businesses. Not knowing where you going is like a hose that [...] READ MORE

A smart Cashflow Strategy will generate better business profits!

By |2022-05-07T04:21:37+10:0027/01/2022|Categories: Blog, Business growth|Tags: , , , |

For many businesses, cash flow is an issue that holds the business back. But, unfortunately, there never seems like there is never enough cash when you need it. With Christmas around the corner, it’s time to plan. Naturally, a business owner will not want to reduce their cash balance unnecessarily at this time. But, on the other hand, an increase in cash into the business can make life easier and lower the cost of financing. Moreover, squiring the money now can pay dividends in the post-festive month of January. How to reduce cashflow leaks  To help you preserve or increase [...] READ MORE

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