Posts Tagged "budget"

Have You Made Your End of Financial Year Resolutions?

Posted by on Jul 12, 2017 in Blog

Have You Made Your End of Financial Year Resolutions?

There is always talk of New Year’s resolutions come the beginning of January. Some may relate to your personal goals while others are geared more specifically to your business. However, end of financial year resolutions are different altogether. They allow you to focus purely on your organisational goals and how your company will perform over the next twelve months. Coming up with a financial plan for your business is the best resolution you can make, especially while all the figures are still clear in your head from tax time. Armed with a solid twelve months of financials from the prior year, you can analyse your business performance and determine its financial health. Ask yourself these questions: How did your organisation fare from the previous financial year? What were your strong months? Did you see real growth? Were you profitable? Did you see a solid return on investments from your campaigns? What would you do again if the situation presented itself? What would you do differently? Build a budget Now before you go any further, it is important that you have a budget to guide your future movements. Are you planning any big purchases that your current level of cash flow...

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Building A Business Budget

Posted by on Jun 14, 2017 in Blog

Building A Business Budget

As a creative business owner or entrepreneur, without a budget, it is hard to know how much you are earning, let alone spending. How can you keep track of revenue and expenditure without some kind of budget in place? The truth of the matter is you cannot! By creating a budget and then referring to it on a regular basis, you can measure and control your actual performance against expectations and ensure financial success. So where do you start? How much money are you currently bringing in at the moment? This will help you understand your current financial situation. Start with your sales figure and then add any specialised income on top of that. Focus on how much it costs to run your business. Gauging your fixed costs, i.e. the non-changeable ones, are the simplest as they don’t generally alter when the business grows. Look at expenses such as rent, insurance, utilities, the internet, staffing and telephone costs. Many of the charges may replicate themselves throughout the year. Focus on expenses and revenue Now, look at your variable expenses, the costs which will change as your business grows. Take into account the stock, commission and other expenses your business may...

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Understanding The Difference Between A Cash Flow Forecast And A Budget

Posted by on Mar 22, 2017 in Blog

Understanding The Difference Between A Cash Flow Forecast And A Budget

When you start out running a business, it is important that you understand some of the terms which you may come across. A cash flow forecast and a budget are two references which we will explain in more detail so you can have a better handle on the management of your finances. While there are some similarities between your cash flow forecast and budget, they are slightly different with specific uses and benefits. Both are used to further your business objectives and positively grow your business. Let’s break it down a little more. What is a Cash Flow Forecast? Your cash flow forecast allows you to plan out when you have cash and when you don’t. It explains when cash is going in, and cash is going out to help you budget accordingly. It lets you see when you will have money in the bank and take into account any loans or payments which need to occur over any given month. Your cash flow forecast can be easily updated each month to show what is in your bank account versus any project spends (fixed and variable) and income to be received. What is a Budget? Your budget is slightly...

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How the 2016 Federal Budget Affects Your Business

Posted by on May 25, 2016 in Blog

How the 2016 Federal Budget Affects Your Business

The Federal Budget has been relatively kind of late to small businesses with some significant initiatives being offered up. Here is a snapshot of some of the measures which may have a direct effect on your business. Of course with the Federal Election later this year, anything could happen so enjoy the benefits while they last. Lower Tax Rate for Businesses Earning Less than $10 million Last year the company tax rate of 28.5% was introduced to companies with a turnover of less than $2 million to be applied to the financial year ending 30 June 2016. Come July 2016, the threshold will increase from $2 million to $10 million and a lower tax rate applied. Note however the $2 million threshold will be retained for small businesses to access Capital Gains Tax (CGT) concessions. This policy change will affect about 870,000 businesses employing 3.4 million Australians. The rate for the financial year ending June 2017 will be reduced to 27.5% for companies earning less than $10 million. Those opting for PAYG installments will benefit from the lower tax rate as of July 2016. This year’s budget aims to reduce the fiscal rate to 25% over the next decade....

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Lessons From Koko Black

Posted by on Dec 2, 2015 in Blog

Lessons From Koko Black

News earlier this month that deliciously deluxe chocolate retailer, Koko Black had gone into voluntary administration was a little bit disconcerting. What if we end up with a deficit of really decent chocolate?! More than that, however, it can be a little scary when a well-known and successful business goes belly up. We can’t help but think about our own small business and wonder how we’ll survive if someone like Koko Black can’t. There are some valuable lessons in this occurrence, however. First and foremost, it’s important to stop the catastrophising and dramatics and realise that Koko Black and their administrators are doing what they can to keep going. Koko Black made some judgemental errors in the past and now they are trying to rectify them. It’s easy to throw your hands up and give up. It’s more beneficial to learn from failures, to recognise what has gone wrong, face up to it and do something about it. Shiny objects – and not decadent chocolate! – appears to be their downfall. In statements made to the media, they explicitly stated that “The business expanded very rapidly and undertook a series of major projects over the past 18 months. In...

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