Accounting

To prepare a complete and accurate set of financial statements the starting point is always the collection of information. This includes determining all income earned, costs incurred and assets purchased or sold during a specific period. In addition, invoices unpaid by customers, invoices unpaid to suppliers, the balance of stock on hand, details of finance including bank overdraft, business loans, or trade finance, will be required at the date the financial statements are being prepared.

Financial statements tell the business’s story. When delivering financial statements, consideration must be given to each component as the profit & loss statement, balance sheet, and cash flow each have something to say about the business, whether read together or in isolation. In addition, notes to the financial statements provide important relevant information that may not be apparent from the numbers alone. When decisions are based on financial statements, getting the story right is critical.

Financial statements are fundamental for decision making for a wide range of users including owners, investors and financial institutions. There are various methods of financial statement analysis that could be performed. The type of analysis chosen may vary depending on the decisions the users are trying to make. Financial analysis is a regular process applicable to every business when trying to evaluate past performance, ascertain the current position and predict future performance.

Our financial accounting sound-board is for business owners and managers who have questions about writing or interpreting financial statements, or really any business-related questions. Business owners should be able to use financial statements for decision making. Talking through financial results and future plans then knowing when strategic advice is required is important. Ever wondered what your banker will think of your financial statements? Get a banker on your side!

Everyone who’s had to manage their own money for any length of time knows that developing a budget is invaluable. A solid budget will help not only track spending but control it. Most business owners and managers find that trying to create a budget for the first time can be extremely difficult, not to mention stressful. The fear of not sticking to a budget or failing is a common reason why businesses don’t have one. It shouldn’t be this way.

Business owners are faced with countless decisions every day. Management accounting uses information from your operations to produce reports that provide ongoing insight into your business performance, so you and your managers have data-driven input to make everyday decisions. All small business owners should use these reports to help improve decision-making over time, resulting in higher profitability and greater competitive advantage.

Today, you might be using spreadsheets and paper-based processes to manage your business functions. This method used to meet your day-to-day needs, but as the business grows it’s showing its limitations: not handling increased and more complex data needs, and leaving your records vulnerable to costly human error. While you may have outgrown your existing labour-intensive systems, hiring new employees to handle the influx of work isn’t economically feasible. Hello Technology!

In the digital age, the enormous amount of data available to a business can be frightening. Collecting the data and running management reports is just the start of the process. Without analysis and interpretation, running management reports is a waste of time and resources. To be successful in today’s market, a business needs the ability to analyse complex data, produce actionable insights, and adapt to new market trends to stay ahead of their competition.

Taxation is a complex and ever-changing area that affects every part of your business. Staying up to date with tax law takes time and energy you may rather spend elsewhere. However, without understanding the tax implications attached to a transaction, you could find yourself in an unexpected situation. When events occur outside normal business operations, you should seek advice from an expert. It’s their job to stay up to date.

You have the right to arrange your financial affairs to keep your tax to a minimum. Tax planning uses deductions, exemptions and structures to reduce taxable income, while still meeting compliance and reporting requirements. To maximise opportunities, businesses should start tax planning well before the end of the financial year.

Running a business comes with the responsibility of ensuring tax lodgements are kept up to date. For most business owners, this includes monthly or quarterly Business Activity Statements (BAS) and annual Income Tax Return. Depending on the structure, operation, and industry of your business, additional tax lodgements may be required.

When you need to contact the ATO, to ask for a private ruling, special consideration, maybe a lodgement or payment extension, or respond to an ATO request or audit, it could be beneficial to have a professional handle matters on your behalf, ensuring that your circumstances are communicated effectively, providing the best chance of a positive outcome.

If you find bookkeeping tedious and repetitious, or you don’t do any bookkeeping at all, you’re not alone. If you want your business to work smarter not harder then outsourcing your bookkeeping is a wise choice. In recent years bookkeeping has been transformed by cloud accounting software and automation giving you valuable business insights in the palm of your hand.

When the data entry for your business is up to date, regular review of financial reports: profit and loss, balance sheet, budgets and cash flow forecasts will give you vital information to track the financial performance of your business. They will be able to guide you on what areas need improving, and those that are performing well. When you need more our Collaborative Accounting Team is here.

Advancement in technology and connectivity means that you no longer need to find one solution that fits all your needs. For example, Zoho One is a suite of 50+ apps that integrate seamlessly, allowing you to choose what your business needs. Apps that can be accessed from almost any device, team chat allowing real-time collaboration and immediate access to information to make informed decisions.

Our bookkeeper sound-board is the perfect place to start when you have business ideas or questions. You can ask them anything. A good bookkeeper should know your business almost as well as you know it yourself. They can help you due diligence your ideas, set your business’s priorities, and answer simple business questions. They may even help you decide what ideas require professional advice and act as the intermediary between you and your professional advisor.