Do you run your business from home?

On December 10, 2019

ATO has issued some new guidance to businesses claiming home office expenses for home-based businesses. What are Home-Based Businesses? A home-based business can be run at home like a boutique or from home like an electrician who visits the client’s site but does all the admin work from home and stores tools etc. Home Office Expenses Normally, if you […]

Understanding Your Cash flow Statement

On December 7, 2019

The statement of cash flows, (also known as the cash flow statement), shows how your business has generated and used cash (and cash equivalents) within a specific time period. For each of the reporting categories, receipts and payments are listed (money in and money out), and this is reported as a net increase or decrease […]

Understanding Your Balance Sheet

On December 5, 2019

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of […]

Personal Services Income. What is it?

On November 29, 2019

This article aims to cover Personal Services Income (PSI) issues faced by contractors, freelancers, medical professionals etc. Though Personal service income act has been in existence for a while, it is still a deeply misunderstood tax act. The article starts by explaining what PSI is and why was it introduced. Then it goes onto cover PSI rules […]

Understanding Your Profit and Loss Statement

On November 28, 2019

Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure. Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. This can be a […]

Holiday cashflow for your small business

On November 8, 2019

Whether you’re heading into a holiday period, or just planning to take a break (and congratulations, because a healthy business means work-life balance), it’s important to keep your cash flow under control. This means pre-planning and being proactive. When you’re not in the office, there are still overheads and salaries that need to be sorted. […]

Financial Habits of Healthy Businesses

On October 31, 2019

Most young businesses are ambitious and focused on their goal of creating brand awareness and product launches. Often, what they end up neglecting are the business finances, especially if the founders are not business graduates or financial specialists. Startups and new businesses are most prone to run into bankruptcy in their first year. A major […]

Making data meaningful for your business

On October 20, 2019

Three steps to ensuring data is meaningful for your business Raw data describes the facts and figures that business processes every day. Over time, every business hoards a certain amount of data and it only becomes meaningful to a business after it has been processed to add context, relevance and purpose. For example, in a […]

What’s in the Forecast

On October 7, 2019

When we set out on a fishing trip or hike, we always check the weather forecast. It’s no different in business. The forecast tells us if there’s bad weather (poor cashflow) in store based on the direction we’re heading. Your forecast will tell you: Whether you have enough sales in the pipeline to give you […]

Dividends and paying yourself as a director

On September 20, 2019

As the director of a limited company, dividend payments are the usual way for you to take money out of the company – and see a financial return on your investment into the company. Dividends are payments made to the company’s shareholders when the business has made a profit. What’s not re-invested into the company […]

Author: Yash Arora