When you own a small business, it’s vital you understand how money flows into and out of it. At a basic level, you need to know where your income comes from and what your expenses are. At a deeper level, knowing how money moves through your business can help you make strategic decisions about growth, invoicing, and debt management. The consequences of not understanding money can be drastic—poor financial management is one of the main reasons businesses fail.
Topics: accounting, accounting systems, xero accountant, cash flow
Monitoring financials and keeping track of rent payments coming in are aspects of rental property ownership which landlords often struggle with. With all the changes to rental property taxation like depreciation and the LAQC changes and new LTC's it will be more important than ever to keep on top of the financials and budgets to make sure you have sufficient cash flow and plan for taxes before the end of the financial year. The reason landlords and property investors often struggle with this area is that they do not have an adequate system in place. Xero is an ideal solution for property investors whether they are small scale investors with only one or two properties or have large investment portfolios.
Topics: financial report, Firm News, investment property, invoices, online accounting, rental property, xero, accounting, automated bank feed, Blog, deppreciation, income, IRD, landlord, LTC, rent, wise advice, accountant
From 1 July 2019, you will have to transfer your payroll transaction data to the ATO each time your employees are paid using a software solution to do this.
Topics: small business accounting, accounting, management
As accountants, we come across many business owners who haven’t given a lot of thought to what their longer term plans are. Often they are continually bogged down in the daily routine and don’t take the time out to plan for the future.
Topics: advice, business, Firm News, startup, Succession, accounting, be your own boss, Blog, return, risk, small business, tax
Debt can be a crippling problem for small businesses wanting to grow or just break-even during difficult times. By reducing debt you’ll improve the value of your business, its financial situation, and its ability to continue operating into the future.
Topics: business, Firm News, accounting, Blog, debt, small business, TAX, break even, cash flow
The key performance indicators (KPIs) for one company will invariably be different from the KPIs of another firm. What both hypothetical companies share however, is the challenge of selecting which KPIs are best suited for measuring the goals and progress of their particular business model.
Topics: business, Firm News, Uncategorized, accounting, accounting systems, be your own boss, Blog
The current perception is that there are many businesses that deal in cash – particularly the service industry and many of us are aware of the scenario of a business offering a discount for cash transactions. This is what is known as the ‘hidden economy” – it benefits neither the provider nor the receiver to be involved in these transactions which amount to a fraudulent activity and the Inland Revenue has targeted this ‘hidden economy’ with heavy penalties.
In fact a month ago, the Revenue Minister announced that ‘compliance activity for ‘hidden economy’ tax evasion gave a return of $45million, $5.60 for every dollar spent” – that was in 2013. This means that ensuring compliance is really worthwhile for the IR and they will continue to invest in this area.
Topics: benefits of Xero, business, Firm News, accounting, Blog, Inland Revenue, TAX, cash flow
Most small businesses experience cash flow problems from time to time and urgently need working capital. Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension. The money you need might already be there—locked up in inventory, assets or your debtors’ book.
Topics: business, Firm News, accounting, Blog, income, cash flow
Service Businesses are hard to value and sometimes struggle to get their price at sale time and a prospective owner can have a lot of questions before taking on a new business.
Topics: CRM system, Firm News, accounting, Blog, Marketing, sell your business, Website
In the five years Xero has been on the market it has quickly gained a reputation as being the easiest accounting system around. Xero is a cloud based system which means that you can log into it securely from any computer with an internet connection anywhere in the world. It also means you won’t need to buy costly accounting packages and upgrades ever again and it even eliminates the need for backups – if your computer crashes you won’t lose your accounting data! In addition to these practical benefits using Xero has many advantages that can give your business an edge:
Topics: benefits of Xero, Firm News, online accounting, small business accounting, xero, accounting, Blog