Measuring the health of your business with ratio measures
When managing a business, it is easy to become absorbed in day-to-day operations and lose sight of the broader strategic picture. Periodically reviewing the financial health of your business is essential. Understanding your current position enables more effective planning, early identification of potential issues, and better navigation toward long-term success. Key financial ratios provide a […]
The value of cashflow forecasting for your business
Projecting your cashflow is a fundamental part of business management. Accurate forecasts give you a clear view of your financial position in the months ahead, enabling timely action to protect your cash reserves. With reliable forecasts, you can plan for different scenarios, identify opportunities for cost reduction, and implement strategies to maintain a healthy cash […]
Cash is not profit and vice versa
A business exists to generate profit – but profit and cash flow are not the same thing, and both must be understood to manage a business effectively. Net profit is calculated by subtracting all operating expenses from total revenue. To improve profit, focus on the areas that drive revenue or reduce costs. For example: Cash […]
Have you got a plan for growth in your business?
Growth does not necessarily equate to increased risk, longer hours, or additional complexity. More often, it begins with clearly identifying the opportunities available within your business and industry. Once these are defined, you and your team can determine the actions required to maximise these opportunities and manage the likely challenges. Some practical steps to consider […]
The ATO’s new Tax Toolkit for small business owners
One of the unavoidable realities of running a business is ensuring that your tax obligations are met—both on company profits and on remuneration as a director. While not the most glamorous responsibility, tax compliance sits firmly with you as the business owner or director. To assist, the Australian Taxation Office (ATO) has released its latest […]
Should you buy or lease your business assets?
Certain items of equipment, machinery and vehicles are essential to the smooth running of your business – whether it’s a delivery van for a food service, or a digital printer for a print shop. When a critical asset is required, the key question becomes: should you purchase the item outright, or lease it and spread […]
Interest rates come down: how could this affect your business finances?
The Reserve Bank of Australia (RBA) has reduced the official cash rate to 3.6%, down from 4.1%. This is the first time since April 2023 that the cash rate has been at this level. The reduction in interest rates has both potential benefits and risks for small businesses, so it’s important to understand the implications. […]
5 signs you’re undercharging
Many business owners and contractors hesitate to adjust their pricing, even when costs are increasing. However, charging appropriately is essential to maintaining profitability and ensuring your services are valued at the right level. Common signs your pricing may be too low include: Finding the right balance requires a review of both your cost base and […]
Keeping your tax and expenses in check when you are self-employed
Operating as a contractor or freelancer requires you to manage multiple aspects of your business – building client relationships, tracking your billable hours, promoting your services, and delivering quality work. Equally important is establishing sound financial management practices from the outset to ensure sustainable operations. We can assist in establishing tailored financial systems to help […]
Business credit: using loans to grow your business
Regardless of where you are in your business journey, additional working capital can provide the resources needed to fund your next phase of growth. Borrowing strategically – and managing debt effectively – can make expansion achievable without compromising financial stability. A critical element in securing finance is your credit profile. Lenders rely on this to […]