Cash is not profit and vice versa

The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow. Net profit is what you have left after you deduct all your business expenses from all your revenue. You change net profit only by changing the things that affect revenue and expenses. For example, if: You renegotiate with your suppliers, you may get stock cheaper, or carry less…  Read more

The Fundamentals of a Business Budget

A business budget is one of the essential tools in managing your business finances and actively building your business. A budget shows what you plan to do with your cash over the next year. For a complete picture of your business health, you need to review the profit and loss statement, the balance sheet, the cash flow forecast and the budget. Taken together, these reports allow you to make informed…  Read more

When should you offer casual employees a permanent position?

Recent court cases involving casual workers have increased attention on casual worker classification, which means your workers may be more aware of the ability to convert to a permanent position. The law has not changed; however, these cases are good reminders for employers to be aware of the rules around converting casual employees to permanent positions. What Makes an Employee Casual? No expectation or commitment to the duration of employment.…  Read more

Your June quarter superannuation guarantee contribution is due soon

Prepare now for your quarterly superannuation guarantee (SG) contribution lodgement. Most superannuation clearing houses (including SuperStream compliant software companies) require payment by the 14th of the month in order to distribute the funds to the relevant super funds for each employee. If you use the ATO Small business Clearing House (SBSCH) you have until the 28th to lodge and pay. July is a good time to review all payroll transactions…  Read more

Your monthly activity statement (BAS) is due on the 21st July

Your monthly activity statement is due by the 21st of this month. Use the following checklist to make sure you are ready for lodgement day: Have you allocated all bank transactions to the correct accounts? Have you verified that the bank balance listed in your accounting software matches the balance in your bank account? Do you have tax invoices and receipts for all business-related transactions? Have you checked the GST…  Read more

Understanding your revenue drivers

For your business to make money, you need to generate revenue. You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be. But what actually drives these revenue levels? And how do you get in control of these…  Read more

Ethical marketing

Ethical marketing is simply the line drawn between moral and immoral advertising to your customers. Given the current crisis, it’s the difference between communicating with authenticity and empathy, and taking advantage of customers through emotive or gimmicky messaging. On one hand, it feels wrong to post about anything that isn’t related to the virus… who wants to hear about handmade pendants or luxury facials in a pandemic? On the other…  Read more

Reopen for Business – Planning Template

In March 2020, the Prime Minister announced the new National COVID-19 Coordination Commission (NCCC) to minimise and mitigate the impact of the global pandemic on jobs and businesses and to facilitate fast social and economic recovery. The Commission has released a template that businesses can use to plan for reopening operations while keeping the workplace healthy, safe and virus-free. The tool complements information on the Safe Work Australia website, which has created a…  Read more

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