The Accounting Centre

“How To Increase Cash Flow In Small Business” gets searched hundreds of times a month on Google, and that doesn’t come as a surprise because cash flow is crucial for survival in business, as small business owners are well aware. Without a steady stream of cash coming into a business, it’s tough to keep the lights on – let alone turn a profit. The financial position of many small business owners is undoubtedly something that is consistently on their minds. Cash flow issues are one of the most common problems they have to deal with and the main reasons companies fail. To avoid becoming a statistic and one of the countless businesses that close their doors each year – any business operator needs to remain aware and in control, as best they can, of the stream of money coming in and out of the business. This article will explore various creative ideas on how small businesses can increase their cash flow, feel more secure in their operation and, hopefully, stop worrying so much abou...

As of June 30th, 2021, there were 2,402,254 actively trading businesses in the Australian economy, and during the 2020-2021 financial year (July 1st – June 30th) there was a: 3.8% , or 87,806, increase in the number of businesses. 15.8% entry rate, with 365,480 entries. 12.0% exit rate, with 277,674 exits. These numbers reflect a large amount of business activity in Australia, and joining the ranks of Australian business owners is something many want to do but is challenging. The journey to starting a business begins with the idea that excites you, followed by an intricate process of brainstorming, researching, benchmarking, planning, and execution to put all ideas & decisions made earlier in the process into action.  Starting a business from scratch and taking giant leaps to grow your business is thrilling, but it can also be overwhelming, costly and perhaps one of the hardest things you can do. We know what it is like to start & own a business in Australia, ...

Nothing is more frustrating than seeing a large chunk of your paycheck disappear into the government’s coffers. The good news is many legal ways to reduce your taxable income and keep more of your money in your pocket. This article will discuss some of Australia’s best methods for legally reducing your taxable income as an individual. So, whether you are a salaried employee or self-employed, there are ways for you to save on tax. Let’s take a look! What Are Taxes? Taxes are compulsory financial charges or levies imposed on individuals or corporations by governments to raise revenue for public services, social programs, or general government expenditure. Governments use taxes to finance public goods and services, including roads, schools, hospitals, police, fire departments, libraries, parks, military defence and much more. Who Has To Pay Tax? There are many different types of “taxes” in Australia so the easier way to answer this would be to say “everyone”. If a purchase has bee...

Small business owners have to be very resourceful and often take pride in doing things themselves. This resourcefulness is helpful when starting a business. Still, as a business grows & a business owner’s time/energy starts to get stretched – a business owner continuing the do EVERYTHING themselves is a recipe for disaster. When there are so many tasks to do and only a limited amount of time in the day, this resourceful business owner needs to start drawings on the people around them for help and delegate some of their responsibilities, so they don’t burn out or make mistakes. One of the more manageable tasks to delegate is bookkeeping. This article will review the five common signs a business needs bookkeeping services . 1. The Books Are Always Outdated: If the books are always outdated, this is a sign that the business needs bookkeeping services. On the surface, this might not seem like much of an issue; however, the problem with outdated books is that business owners can ...

What are Financial Ratios? Running a business, whether large or small, means that having a good grasp on all financial aspects that are part of ensuring business success is essential. One of the best ways to determine the business’ financial performance is through financial ratios. Financial ratios are numerical values that measure the relationship between two or more components, which is determined by using the data found on a business’s financial statements, such as the balance sheet, income statement, and cash flow statement. These values will help determine a range of ratios that will discover things, such as a business’s profitability, liquidity, operational efficiency, and solvency, which are essential to understanding and optimising business performance. What are Financial Ratios Used For? For companies and businesses, financial ratios are often used to present easy-to-understand information to investors or banks and financial institutions. This helps external parti...

Received A Tax Bill & Not Sure Why? It’s the dreaded tax time again and after finally lodging a tax return and breathing a sigh of relief, a bill arrives from the ATO demanding payment of money owing. Why and how has this happened? The most common reason is that insufficient tax payments were made to the ATO throughout the year in accordance with the individual’s tax bracket determined by their yearly income.   Small businesses, self-employed individuals and sole traders are the most likely to get caught out for not making enough tax payments in PAYG (pay as you go) instalments throughout the year to the ATO. For those who might fit the description above it is recommended that a comprehensive small business accounting guide be reviewed to ensure that all the basics of accounting in Australia are understood. If working as an employed individual, the employer may not have withheld enough tax from each payment made to fulfil tax obligations. An increase in yearly income...