Looking Into The Financial Crystal Ball
The current economic climate makes it absolutely vital to look into the future and prepare your business for increasing or declining revenues. You need to plan the resources you will need, to fulfil the level of revenues expected.
Get Your Accounts In Shape For Business Borrowing And Growth
Business accounts are not a very sexy subject ... at least when you are up to your ears in running, managing and problem-solving. Unfortunately though, a poor set of out-dated accounts will really hold you back when you need to borrow and your bank manager is asking for current accounts, cashflows and projections.
Debt - Equity: Getting The Mix Right
One of the key issues that needs to be considered by business owners is, what is the right mix between debt and equity and, in the current climate have the fundamentals really changed?
Glossary Of Common Accounting Terms
Accountants do it on purpose ... they use weird words to make you think that they are smarter than you are, and to keep you in the dark. Or, the less nasty ones just don't know better. Good accountants and bookkeepers want you to learn the lingo. Keep this glossary handy as you work with your professional money managers. Use it to begin your journey to financial literacy!
FAQs On Small Business Budgeting
A budget is a guide to the financial performance of the business and a way to quickly identify overspending and potentially loss-making situations. Here are answers to the most common questions asked about small business budgeting.
Keeping Your Fingers Out Of The Till
Separating your personal finances from those of the business can have a very positive impact on your cash position.
Getting The Most Out Of Your Relationship With Your Bank Manager
I'd like to share the benefits that many small business owners are enjoying by having a good relationship with their Bank Manager - and how your business can benefit too.
Regaining Control Of Your Time And Money
Better time management of finances means freeing-up time for prospecting and winning new business; it also means more time to mentor staff, manage key accounts, and perhaps most importantly, spend time away from work with family and friends.
Managing Accounts Receivable Days
Have you heard the term 'Accounts Receivable Days'? This is not the number of days that you give your customers to pay, but the number of days, on average, that all of your customers are actually taking to pay you - which gives you a starting point to measure improvement.
How To Stop Overheads Heading Over The Top
The simple tactics in this article can have a huge impact on the Overheads Percentage result, and ultimately, the value of your business.
Budget Help For The Small Business Owner
Don't avoid budgeting because you are not sure that you know how. You know more than you think you do. Here are some tips for putting together your business budget.
Accounts A Valuable Resource, Not A Compliance Nuisance
Accounts preparation should not be seen just as a compliance, pre-audit or tax return requirement. Businesses that stay on top of their accounting gain a great many benefits.
Your Report Card
Since the information contained in credit reports will directly affect whether you and your business can access credit through financiers, suppliers and even your phone company, it's important to understand what they are and how they're used.
Loan Essentials - Reading Beyond The Small Print
Thankfully, securing a loan is relatively easy for most SMEs. You can be sure that there's a loan to suit pretty much any requirement, and as long as you're prepared, finance can be the key to growing your business. Just remember: take time to plan, don't be afraid to ask questions, and always read the small print.
Good Debt Versus Bad Debt
Whilst for most it's almost impossible to live debt free today, understanding the difference between good debt and bad debt will enable you to borrow smarter, save substantial interest costs and grow your wealth.
Cutting The Cost Of Banking
Your bank can make an enormous contribution to the long term success of your business, assisting funding, cash management and payment transfers. But as with any other expenses in your business, be sure that you always get the value you expect and don't pay more than necessary.
Retail Shrinkage - Small Percentages Represent Big Dollar Losses
Shrinkage can be a silent but deadly killer of retail profits. Often it is hard to measure because retailers lack the necessary management information from point of sale (POS) systems and accurate stocktakes to precisely measure the extent of the problem. The problem needs to be identified before it can be tackled.
To Lease Or Not To Lease: That Is The Question!
Your business needs new plant, a computer system, or a delivery van, and you don’t want to dip into your capital reserves or bank balance to buy it!
Five Things Every Small Business Owner Should Know About The Business
As everybody knows, nearly everyone has advice for the small business owner, some of it sound and some not so sound. But when all is said and done, there are a handful of basic financial questions that you need to always have the answers to, after you've put the monthly financials in the drawer.
Managing Your Creditors
If you have established good relationships with your suppliers, most will allow you to delay payment for a while so your business can weather short-term cashflow problems. But ignoring your creditors could put your business at risk.
Trusts And Asset Protection: The Basics
What is a trust? How can a trust help protect your personal and business assets? As for business asset protection, is it something you need to know about? Here are the answers, delivered in a straightforward manner.
Royalty Stacking: Tips For Licensors And Licensees
In order to bring a product to market, a licensee may need to obtain rights from various rights holders. As a result, a licensee may be faced with a ‘stack’ of royalties to pay.
Financing Business Assets - Rent, Hire Or Purchase?
When it comes to buying business assets - whether they be company cars or factory equipment - there are a number of ways to finance the purchase.
Budgeting Made Easy: Quick Steps To Success!
Bet that headline caught your attention! And, while all of us undoubtedly yearn for less pain around budgeting, we also bet that this headline is being met with the same dose of healthy skepticism as those late night infomercials touting millionaire-making deals with no money down! We'd like to suggest some survival tips in the form of new, slightly different, ways to approach budgeting for your people-related programs.
The Pros And Cons Of Purchasing Business Premises
Buying business premises gives you control over one of your major financial investments. As an owner-occupier, you can choose to stay in the premises forever. If need be, you can raise money through selling, taking out an additional mortgage or letting part of the premises.
Financial Forecasts And Your Business
A common factor amongst successful business of all sizes is the ability to plan and forecast in a timely and efficient manner. The ability to compare actual to forecasted results allows your business to assess its performance on a more frequent basis – rather than once a year from your end of year accounts.
Testamentary Trusts - Estate Planning Strategies
In recent years the term “Testamentary Trust” has been used to describe what is usually a Discretionary Family Trust established under a Will. Their popularity arises from the considerable benefits that can flow from their establishment under a Will. A number of these benefits arise from the fact that the assets of the Trust while they may be controlled by a potential beneficiary, do not form part of that beneficiary’s estate. This feature means that a beneficiary’s inheritance that has been provided through a Testamentary Trust can be highly beneficial in a number of circumstances.
Allocated Pensions . . . Are They Right For You?
An allocated pension is a tax-effective retirement income stream created from funds in superannuation. They have been very popular with retirees in recent years but before you use one it is important that you understand how they work.
There Is More To Tax Than Income Tax
Have you recently reviewed your businesses superannuation, employment taxes, or GST payments? Most businesses devote proper attention to ensuring that income tax is calculated to maximise savings. However, for many businesses the same consideration is not given to employment taxes, GST, or superannuation contributions and this has the potential to result in miscalculations and heavy penalties.
Causes Of Business Decline - Inadequate Financial Control And Competition
In the article 'Symptoms of Decline', we examined some of the major symptoms of decline that may arise in a business. Having identified that symptoms exist, it is necessary to seek out the cause.
Protect Your Business Against Escalating Insurance Premiums
Over the past decade the insurance industry has shown poor results and insurance premium increases are affecting businesses throughout Australia.
How To Spot A Trusted Advisor
While many people are concerned with planning for their financial futures, much scepticism towards the Financial Services Industry exists which is preventing these same people from becoming financially well organised, securing their futures, and enjoying more of what’s important to them.
Entrepreneurs Require Demystification Of Financial Management
Lack of financial management is often cited as the main reason for business failure. Formal accounting techniques and reports fail the entrepreneur, as these procedures are too rigid and too slow to respond to events, and historical accounting methods often do not reflect the current activities of the business. This article discusses the need to bridge the gap between accounting practices and entrepreneurship.
Avoiding Financial Crisis
In almost all cases, a business experiences some level of financial trouble during its life cycle. For many, this trouble is resolved in the ordinary course of business, with management or owners paying attention to early warning signals, identifying the problems, and developing solutions that work when implemented properly.