An asset ratio compares your assets to another part of your business. So, you could be comparing assets to revenue, profit, the number of employees or their salaries – whichever you wanted to measure. For example, if your assets/salaries ratio increases, you may have staff over-ordering on equipment. It’s a great ratio to assess the […]
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How can there be a profit if the year’s ended with no cash? It’s quite common for businesses to end the year with little or no cash, only to be told by their accountant that they made a profit and must now pay tax. The reason for this is that tax is decided on the […]
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At some point in its lifetime, every small business suffers from cash flow problems. The trick is to think ahead and figure out when these problems are going to arise, so you don’t have to unexpectedly postpone a purchase or hurriedly seek out additional finance. This is where cash flow forecasts come in. To effectively […]
Growing a business is one of the most fundamental goals for all small business owners. Successful businesses are those that are always looking for opportunities to grow and making the most of them. What is scalable growth? Scalable growth involves balancing the increase of your profits against the increasing costs of manufacturing your products or […]
Accounting problems can have serious consequences for your business and are definitely worth avoiding. Here we outline six ways to solve the majority of your accounting issues. 1. Know the difference between profit and cash flow If you’re a new business owner, it can be easy to spend money on growing your business rather than […]
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Why accountants are necessary Unless you’re an experienced accountant yourself, it’s always best to have an expert overseeing your financial business affairs. As a business owner, you’ll probably be juggling several roles, but it’s not wise to spread yourself too thin where money is concerned. And even though accounting software does most of the hard […]
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What’s ‘the cloud’? Think of it like this: instead of storing and accessing your data from your own computer’s hard drive, you’re accessing other computer hard drives over the Internet. So all the information you’ve stored with other companies (from Facebook to Instagram to Google Drive to your bank account) are actually in physical computer […]
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When you’re deciding what you really need to manage the books in your small business, it’s important to focus on your core business needs. So, there are some questions you need to ask yourself before you go ahead and make the purchase. Remember – the most expensive option isn’t necessarily the best. While most accounting […]
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Below are some suggestions for unlocking funds without affecting your operational capacity. Keep in mind that you should always seek professional guidance before making changes to your business if you are unsure of the repercussions or potential issues. Hidden sources of finance Most business owners immediately think of the bank or loans when they’re short […]
