Business Financial Statements 101
Like personal budgets and tax statements, financial statements are vital for any business. They facilitate business decision making, provide a clear picture of the status of the business, and enable owners and managers to know when business goals have been reached. We look at the essential statements for businesses of all sizes, including the profit and loss statement, the balance sheet, the cash flow statement, and the statement of retained earnings.
Why Use Financial Statements?
Financial statements provide readers with a picture of the financial status of the business. In large companies and for investors, financial statement literacy is vital, as it is for small business owners. For those who need specific advice, specialists for small business accounting in Sydney and elsewhere are qualified to provide in-depth consultations about financial reports.
Top Secrets of Time-Effective Small Businesses
Numbering over 1.96 million in the 2010/11 period, small businesses account for a significant proportion of the Australian economy, accounting for nearly half of industry employment. As many small business owners know first hand, time is a critical factor in small business. In this article, we look at some of the top secrets of the most time effective small businesses.
Outsourcing
Balancing profit considerations with staff requirements is a priority of most small business. Luckily, any business can boost staffing numbers very quickly, on a needs basis, by outsourcing. In addition, Outsourcing allows you to access expert advice and specialist skills; for example, obtaining advice from accountants in Sydney or your local area.
What to Know When Buying a New Business
Thousands of businesses are bought and sold every year in Australia. As with any entrepreneurial endeavour, buying a business can come with its own risks, but when done correctly, it can be an excellent way to become a business owner without the initial start-up headaches. This quick guide outlines the things buyers should know when purchasing a business, including the need for due diligence and getting professional advice from accountants in Sydney or your local area.
Choosing an Industry
Many business owners choose an industry based on their personal passion or technical knowledge and skills. Whatever your motivations for choosing a business, it’s important to be certain that you can bring skills and know-how that will make you competitive in the market.
7 Most Common Financial Mistakes by Businesses
Good financial planning, budgeting, and management are vital for any growing business. Some of the common financial mistakes made by businesses stem from failing to prioritise financial management. While it’s advisable to seek out the advice of accountants in Sydney or in your region if you have any specific questions, this article outlines some of the most common financial mistakes by businesses.
1. Undercapitalisation
Undercapitalisation is linked to poor cash flow management. Carefully consider all possible options for funding. Where possible, seek professional advice. Specialists in small business accounting in Sydney and elsewhere can provide directions on budgeting, projections, and accurate cost estimates.
How to Make Your Business Plan Work for You
Most businesses have a plan, but not all businesses extract maximum utility from their plans. Like your operating environment, your business plan should not remain a static creation. It’s a working document that should be tested, reviewed, and updated as your business grows and expands. While accountants Sydney and elsewhere are qualified to provide advice about setting business and financial goals, business owners can act proactively to make their business plans work for their goals.
Testing
All business plans should be tested for potential weakness or risks via periodic analyses. If you have already done a significant amount of research and crunched the numbers, testing your business plan may be a matter of updating figures on your financial statements and getting the latest market and industry figures.
Testing your plan will usually involve the following key areas:
3 Facts About Effective Business Plans
We have heard it stated many times before: you would not go on a holiday without first planning your schedule, so why would you start a business without a plan? Every business needs a business plan, but what differentiates a passable plan from an effective one? As we’ll see in this article, it’s about research, answering your questions, and covering the key bases.
Fact 1: Effective Business Plans Answer Specific Questions
Business plans are designed to be blueprints and as explicit statements of goals, but they should also answer specific questions. These are just some of the key questions to answer when preparing your plan. Financial advisers and accountants in Sydney and elsewhere can assist with different aspects of your business plan.
How to Manage Cash Flow in Start-Ups
Effective cash flow management is one of the most important aspects of running a business. For start-ups, it’s even more crucial to stay on top of cash flow by making accurate projections and ensuring that your business has access to adequate funds for expansion. While specialists in small business accounting in Sydney and elsewhere are best consulted for specific advice, this quick and practical guide can help you get started.
Choosing Your Funding Options
Careful planning can help you raise adequate finance for your new business. Owners need to decide how much finance is required, for how long, and provide some security or equity in the business for access to the finance. The following factors should be considered when deciding how much financing you’ll need:
8 Strategies for Minimising Small Business Tax
Small businesses form a valuable part of the Australian economy and the Australian government provides a range of tax incentives and exemptions to encourage small business owners. When tax time comes, great records, knowing about your allowable deductions, and obtaining professional advice can all help to significantly reduce your small business tax liability. These are eight easy strategies to consider.
1. Review Your Business Structure
Your business structure can significantly boost your ability to legally reduce your tax liability, whether it’s a sole trader, unit trust, company, partnership, or any other business vehicle. An accountant with expertise in small business accounting in Sydney or elsewhere in Australia may be able to save you thousands or more in tax every year.
How to Simplify Small Business Tax Compliance
Around 96 per cent of businesses in Australia – over 2 million – are small businesses, which in turn employ around 5 million Australians. In this article, we look at some of the ways in which small businesses can simply their tax compliance strategy to save money and to improve productivity by freeing up time for core business activities. For specific compliance advice, it’s a good idea to consult accountants in Sydney or elsewhere in Australia.
1. Outsource Compliance
Tax Compliance Cuts into Personal Time for Small Business Owners
Research has suggested that too many small business owners devote a large amount of personal time on tax compliance. A 2010 study by Galaxy Research found that 40 per cent of small business owners spend personal time to address reporting obligations, with a majority dedicating as much as an extra 60 hours every year, or around one Sunday every month on tax issues.
2012 Changes to the Small Business Depreciation Rules
Tax law changes for small business depreciation will benefit for 2.7 million small businesses. They’re due to take effect from July 1, 2012. In this article, we take a look at these changes and what they have in store for your business. If you require more information, qualified accountants in Sydney and elsewhere in Australia can assist with specific advice.
The Changes
The legislation is set to take effect from July 1, 2012, affecting the 2012 – 13 income year. The key changes to the small business depreciation rules include: