The Tax Implications of the Sharing Economy
Written by Nick Fedele: Are you thinking of renting a room in your home through Airbnb or becoming an Uber driver to earn additional income? If you are, then you will be entering into the sharing economy and you will need to be aware of the different tax implications. The following explores the implications for […]
Taxing Foreign Income in the Hands of an Australian Resident
Written by Emily Baulderstone: Under Australian Tax Law, income derived by an individual who is considered to be an Australian resident for tax purposes is subject to income tax whether this income was derived from an Australian or Foreign source. Determining if you are an Australian resident for tax purposes can be a difficult issue […]
Deciding whether to divest poor performers
Poor performing products or services can be a serious detriment to your business, diverting valuable resources and finances from more successful ventures and pulling down the overall profitability of your entire business. So knowing when to pull the plug on a poor performing product or service is important. Some signs which may indicate that a […]
How to increase your profit margins
Many business owners think you need to increase sales to make more money. But often this is the more difficult path. A minimal increase to your profit margin can have a much more profound effect. Watch our video How to improve your business profitability to explore why this is the case and what you should […]
Accrual vs Cash Accounting: which method should you use?
There are two types of accounting methods accrual and cash accounting. Which type your company uses can have a major impact on the total revenue and expenses that appear in your financial reports. Typically cash-basis accounting is used by smaller businesses who prioritise simplicity. Using cash-basis accounting a company records expenses and income as the […]
Financial Performance – How To Assess It For Your Business
One of the most common questions we get asked is “Am I making enough money” or to put it another way “How much profit should I be making”. This video shares a simple but powerful process to assess the financial performance of your business. So what is the financial performance of your business? Financial performance is […]
Product lines…how much profit is enough?
In my work advising business owners I’m often asked the following question – “how much profit should I be making?” Or to put it another way, “how much profit is enough?” Often a business owner will advise me that they’re making a certain gross profit margin (GP margin) or certain net profit. Sometimes, the GP […]
Salaries vs Dividends vs Drawings: What’s the best option and why?
Unless you’re running your business as a sole trader, the time will come when you must decide how you will remunerate yourself for your time, efforts and entrepreneurship. The profits of your business belong to the company operating that business, not to you. But there are various ways in which you can extract the value […]
The key financial metrics you need to know to achieve financial success
Measuring the right financial metrics is key to the ongoing health of your business. They can provide important insights into how well your business is doing, and allow you to make informed decisions to maximise your growth into the future. If you want to keep your business on track, you simply cannot ignore the process […]
Businesses use of long-term funding to finance assets: why, how, and what to do about it?
Managing the cash flow of a business is definitely one of the most important tasks of being a business owner. Prudent business owners regularly look at updating vital business equipment to take advantage of efficiencies that are created by newer technology. Choosing the right type of asset finance to fund this equipment can help save […]