The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your enterprise. But how does profit differ from cashflow? And why is cash king?
How do profit and cashflow differ?
To understand the difference between generating profit and managing cashflow, we need to look at what both these terms mean.
Let’s take a look at the differences:
- What is profit? – Profit is the surplus that’s left from your income once you’ve paid your expenses, supplier bills and tax etc. It’s driven by creating a profit margin and generating value from your products and/or services.
- What is cashflow? – It’s the ongoing process of ensuring that the business has the available cash (or ‘liquid’ cash) needed to operate. This provides the money needed to trade, to pay suppliers, to cover wages or to buy materials etc.
Why is positive cashflow so important?
‘Cash is king!’ may be a cliche these days, but it’s a maxim which underpins any successful business model. Yes, it’s great to make a profit at year-end, but if you don’t look after your cashflow then the business may not survive as long as the end of the year.
What’s needed is good cashflow management to enhance your financial health. And without a careful eye on your cash numbers, things can quickly go awry.
A business can generate high revenues and big profits, but still be cashflow poor. In other words, it can have profits at the end of the period, but have very little liquid cash to fund it’s day-to-day operations over the course of the period.
Talk to us about improving your cashflow management
Good cashflow management is all about being in control of your cash inflows (income you’re generating) and your cash outflows (what you’re spending). To achieve ‘positive cashflow’ you need to proactively work to keep your inflows higher than your outflows.
As your adviser, we’ll help you set up detailed reporting and forecasting, so you can keep the business in that ideal positive cashflow position. And we’ll also look at key steps for keeping your revenues high, margins profitable and meeting your financial targets.
To read more, click here.
Keeping the business in a positive cashflow position is vital. But you can only do this if your cash inflows (sales revenues and other income) outweigh your cash outflows (overheads, supplier costs and other liabilities like tax costs or loan repayments). One way to re-balance the cashflow scales is to get in better control of your business spending. This process of ‘spend management’ is all about reviewing your expenses, negotiating better deals with suppliers and getting a razor-sharp focus on reducing your cash outflows.
Review your current suppliers
Once you have a reliable supply chain set up, it’s very easy to fall back on using the same suppliers time and time again. But the reality is that there’s real value in reviewing the suppliers you’re using, so you don’t miss out on any better deals.
Prices will go up and down in the marketplace and new suppliers will appear in the market. So it’s worth regularly checking for alternative providers that can offer cheaper rates, better value prices or longer payment terms etc.
Negotiate better prices with your trusted suppliers
You may be happy with the supplier relationships you have, but still want to cut down on your spending. In this scenario, it’s well worth negotiating. Very few suppliers will want to lose a valued customer, especially if you’re a long-term client who’s bringing in reliable revenues. If the relationship is strong enough they’ll be open to negotiating a deal that works for both of you.
See if you can push the prices down, or get discounts for buying in bulk etc. And, if possible, see if you can get them to agree to a trade credit agreement, where you can pay for the goods and services over a longer period of time, to boost your cashflow.
Rein in your expenses
It may sound obvious, but one of the easiest ways to cut your overall expenditure is to be a bit more frugal with your overall spending. Don’t overspend on stock, raw materials or services. Just buy what you need to stay operational, and keep a close eye on when new orders will be needed, rather than overspending and using up your available cash.
Where day-to-day spending has got out of hand, you can make a big difference to your expenditure by making small changes to your outgoings. If you look at your business spending with a fine-tooth comb, you’ll soon find costs and expenses that can be cut back or stopped entirely. Other cash-saving options could include putting a limit on staff expense cards or canceling unnecessary software and magazine subscriptions etc.
Use a purchase order number system
A purchase order number system makes it easier to keep track of your business spending. In essence, any purchase made by the business needs a purchase order (PO) number assigned to it, prior to a member of staff buying anything. This allows you to allocate a budget and track the spending against this particular purchase or project.
Having a PO number also makes it easier to track incoming invoices. Suppliers can quote the PO number on their invoice, so you can match the bill to the allocated job and budget.
Use tech to get in control of the numbers
In an ideal world, you want as much oversight over your business spending as possible. And with today’s cloud accounting software, expenses apps and inventory tools, it’s easier than ever to manage your expenses and stay in control of the main numbers.
You can use an expense management system, like Pleo, Soldo or DiviPay, to get better oversight of spending and put yourself back in the expenses driving seat.
If you want to streamline your spending, come and talk to us. We’ll help you spot the areas where costs can be cut and use the latest tech to manage the numbers.
Feeling the crunch? Find out how to get more money from your business here.
Consumers are driving the trend towards sustainable business practices, voting with their dollars to support greener companies. The Global Sustainability Study 2021 found that:
- 63% of consumers have shifted their spending toward being more sustainable in the past five years, particularly younger consumers.
- Half of consumers rank sustainability as a top 5 value driver.
- 34% of consumers are willing to pay more for sustainability, with a higher share of Millennials and Gen Z prepared to pay more.
“Consumers send a clear signal: sustainability will continue to become the expectation, rather than the exception,” notes the study. “Companies must transform their businesses now in order to stay relevant for the future.”
Transforming your business might ultimately require investing in new systems, packaging or products. But in the meantime, here are 5 quick wins to help set you on the right path.
1. Reduce plastic waste
Is your business still buying single-use plastics? Whether it’s pallet wrap, disposable cups or those coffee pods, there’s a quick and easy sustainable swap that you can make right now.
2. Recycle your old electronics
Old printers, phones and laptops can often be found lying around the office – along with a huge tangle of cables. Tidy up your space and help the environment by finding your local e-cycling centre and making the best of your outdated electronics.
3. Offset your carbon footprint
You can use an online calculator to estimate your business’s carbon emissions, then buy carbon credits to the same value to offset your emissions.
4. Use less paper
Embrace digital technology to cut your use of paper; switch to an electronic signing service so you no longer need to print and scan contracts or financial documents. If you must print something out, use both sides of the paper for internal documents. Buy recycled paper and recycle the paper waste your business creates.
5. Choose sustainable client gifts
Instead of sending hampers, consider a charitable donation – you could let the client choose from a list to get them engaged. Or send a potted plant, adopt an endangered animal, or pick an eco-friendly gift basket.
For more ideas, we can help
If you’re looking for more significant ways to invest in a sustainable business, we can help. Get in touch, we’d love to talk to you about sustainability in your industry and how to get the most out of every dollar you invest.
Click here for small business tax tips
The 2022 Fringe benefits tax (FBT) year ended on 31 March 2022, so it’s a good time to start considering what you need to do to lodge your business’ FBT return and pay FBT.
You’ll need to work out if the business has an FBT liability for any fringe benefits provided to employees (or their associates) between 1 April 2021 and 31 March 2022. An associate includes a spouse, child, parent, sibling and most other relatives (but not cousins).
If your business has an FBT liability for the 2022 FBT year, the FBT return and payment is due by 23 May 2022. This date applies as the statutory due date of 21 May falls on a weekend this year. The due date may differ if your business uses a tax agent.
If your business does not have an FBT liability, and it is registered for FBT, you still need to inform the ATO. You can do this by completing a Notice of non-lodgement – Fringe benefits tax form by the date your return would have been due.
Don’t forget to keep all records relating to the fringe benefits that have been provided. Including how the taxable value of the benefits was calculated.
If you need a freshen up on what FBT is, we’ve got that covered for you here.
Tip! If your business provides fringe benefits to employees, we can help prepare your FBT return and work out if you have an FBT liability.
You may have heard or read about the new Director Identification Number (commonly referred to as DIN or Director ID – these terms seem to be quite interchangeable!). So, what exactly is a DIN or Director ID, who needs one and when are you required to apply?
Some background
As part of the Digital Business Plan announced in the Federal Budget 2020–21, the Federal Government announced the full implementation of the Modernising Business Registers (MBR) Program. This program unifies the Australian Business Register and 31 business registers administered by ASIC into a single platform and introduces the DIN initiative.
The Australian Business Registry Services (ABRS) – a newly established function of the ATO – will administer the platform and deliver its initiatives.
If you’re wondering what structure your new business needs, check this article out for some information.
What is the purpose of DINs?
Director Identification Numbers are intended to prevent the use of false and fraudulent director identities, and make it easier for external administrators and regulators to trace directors’ relationships with companies over time.
DINs also help detect and eliminate director involvement in illegal phoenixing activities. Illegal phoenixing activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt.
What is a DIN?
A DIN is a unique 15-digit identifier given to a director who has verified their identity with the ABRS.
If you are a director, here are some things to note:
- You need to apply for your own DIN;
- It is free to apply and you will only need to apply once;
- You will have your DIN for life, even if you change companies, stop being a director or move countries.
Who needs a DIN?
You will need a Director Identification Number if you are a director or an alternate director (acting in that capacity) of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act). This includes the director of the corporate trustee of a self-managed superannuation fund (SMSF);
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
Note! If you are a director, you must apply for your own DIN because you will need to verify your identity. No one else can apply on your behalf.
Who doesn’t need a Director Identification Number?
You don’t need a DIN if you are:
- a company secretary but not a director;
- running a business as a sole trader or partnership;
- referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act;
- a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia;
- an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.
When and how to apply
You will be able to apply for a DIN from November 2021 on the new ABRS website. The easiest way to apply for a DIN is to do so electronically using the myGovID app (this is different to the myGov app), but telephone and paper alternatives will also be available.
When you must apply for a DIN depends on the date you become (or became) a director.
Corporations Act directors
| Date you became a director | Date you must apply |
| On or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 and 4 April 2022 | Within 28 days of appointment |
| From 5 April 2022 | Before appointment |
CATSI Act directors
| Date you became a director | Date you must apply |
| On or before 31 October 2022 By 30 November 2023 | By 30 November 2023 |
| From 1 November 2022 Before appointment | From 1 November 2022 Before appointment |
Tip! Although we cannot apply for a DIN on your behalf, we can guide you through the process. Get in touch with us is you need some help.
As the omicron wave hits large parts of the country, many small to medium businesses may be feeling the pain. If your small to medium business is in need of some financial support, there is still time to apply for the government’s SME Recovery Loan Scheme. The end date of the scheme has been extended to 30 June 2022, although the eligibility conditions have also been slightly modified from 1 January 2022, so businesses wishing to apply may need to check to see whether they are eligible under the new conditions.
As a part of an economic package to help businesses recover from the impacts of the COVID-19 pandemic, the government provided cheap credit to qualifying small and medium enterprises in the form of the SME Recovery Loan Scheme. When it was first introduced, and until 31 December 2021, the government essentially guaranteed 80% of the loan amount.
“Around 80,000 loans worth approximately $7.3 billion have been written to date since the scheme commenced in March 2020.”
Treasurer, The Hon Josh Frydenberg MP
However, from 1 January 2022, “with [the] economy showing signs of strong rebound as restrictions ease”, the government guarantee has been reduced from 80% of the loan amount to 50% of the loan amount. The eligibility conditions have also been slightly fine-tuned with the scheme now due to end on 30 June 2022.
To recap, the scheme is available to eligible small and medium businesses with up to $250m turnover, including self-employed and non-profits. Previously, the scheme was also open to recipient of a JobKeeper payment between 4 January 2021 and 28 March 2021, and those businesses affected by floods in eligible LGAs in March 2021. This is no longer the case, and only those businesses that have been adversely economically affected by COVID-19 is eligible.
Eligible small and medium businesses can access up to $5m in total from participating lenders, this is in addition to the Phase 1 (ie unsecured capital loans of up to $250,000 for terms of up to 3 years) and Phase 2 (ie unsecured loans of up to $1m for terms of up to 5 years with a cap on interest rates) loan limits.
The Loans can be unsecured or secured and will generally be for terms of up to 10 years, with an optional repayment holiday period of up to 24 months. It can be used for a range of business purposes, including investment support, or refinancing pre-existing debt of an eligible borrower. For example, the loans can be used to purchase non-residential real property including commercial property or for the acquisition of another business.
While the exact interest rate will be determined by participating lenders, under the scheme, the maximum rate will be capped at around 7.5% with flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.
Participating lenders are able to offer any suitable product to eligible businesses except for credit cards, charge cards, debit cards, or business cards. In addition, loans issued under the scheme to refinance existing loans cannot be used for the purposes of:
- purchase residential property;
- purchase financial products;
- lend to an associated entity; or
- lease, rent, hire or hire purchase existing assets that are more than half-way into their effective life.
Further, there will also be some restrictions on refinancing loans, including not allowing loans more than 30 days in arrears to be refinanced, and not allowing borrowers who have entered into external administration or are insolvent to refinance debts. Participating lenders include the big 4 banks plus a host of other smaller financial institutions and mutual societies.
Want to apply? If you run a small or medium business and want to make use of this cheap credit, we can help you with the application process. If you would like to refinance and are not sure whether you qualify, we can help with that too. Contact us today for expert help and advice.
Ever thought that you’d be better off running your own recruitment firm? You’ve been pretty successful working a large firm, you’ve made some good money, commissions are decent but you know you can do better. It can seem pretty daunting trying to factor in everything you need to have organised. One of those key factors is how much does it cost to start your own recruitment firm? So, we’re here to help you with 7 simple steps to getting you set up in the most cost-effective way.
A quick disclaimer before you read: None of the companies mentioned are sponsoring us. They’re just companies that we and our clients have used and recommended. Further, this list is more specific to those setting up as a sole-trader. We do recommend setting up your business as a company as soon as you find your feet to avoid being personally liable for contracts, debts or anything else business-related. Check out this article about business structure for more on this.
1. ABN & Business Name Registration – $88 for 3 years
Getting yourself an ABN (via ABR portal) is free and registering your business name through ASIC will cost $88 for 3 years.
2. Business Bank Account – $8/month
It’s getting exciting now, you’ve got your ABN and business name, it feels more real. Now you need to get yourself a business bank account for all of those client invoice payments to land in. Most banks have fees of $0-$10 per month.
3. Brand Identity – $2,500 + once off
With branding, you get what you pay for. Seek out the services of a local graphic designer to help put together a logo, basic brand guidelines document including colour palette, type selection and brand ‘tone of voice’. They will usually develop mock-ups or designs for business cards, social profiles and other collateral as part of this process. Depending on the designer, this could cost anywhere from $2,500-$5,000. A good Australian designer will charge $75-$150/h in our experience.
4. Domain & hosting for website and emails – Hosting & Domain +/-$150/year
It’s pretty straightforward to claim yourself a website domain through services like Crazy Domains. The key point here is that your business will grow and you will be best served to plan for flexibility in the website builder you use and in the number of email addresses for staff you can have on the account. A standalone hosting plan is best for this scenario.
5. Website – $25/month
On the topic of websites, there are a bunch of user-friendly, drag and drop (WYSIWYG) websites to help you get started such as Squarespace, which is easier to manage than the more commonly used WordPress. If you pick an annual business plan, it’ll cost you $25 per month. The reason you would want the business plan is to utilise premium features like Google tags and Hubspot integrations.
6. LinkedIn Premium (optional) – $29.99/month
LinkedIn is the prime spot to scope out potential clients and their perfect candidates. Getting LinkedIn Premium is even better as it gives you access to InMail so you can directly get in contact with people. It’ll set you back $29.99 for every month you use it.
7. Customer Relationship Management – $99/month
Now that everything’s set up and you’ve got some customers, how do you best manage them? How do you market yourself better? CRM heavyweights like HubSpot are the go-to in most industries, but in recruitment, we’ve noticed our clients use a CRM called JobAdder which is specifically designed to support the recruitment process.
8. Accounting software – $27/month
We would be a bit slack if we didn’t list a good accounting software like XERO or Quickbooks. Investing from the outset in the solution you will need when you are paying staff and running multiple accounts will be worth it in the long run.
Want to know which is best? Have a read of this comparison article.
So, enough detail, what is the cost of setting up my own firm?
With all of these considered, your shiny new recruitment firm will cost you at least $4,000 in your first year so factor that into your business budget. With all things considered above and maybe some budget for some merch like re-usable coffee mugs and pens for your clients, $7,500 is a healthy starting point in your first year.
Streamline Your Business with Our Recruitment Industry Whitepaper
Ready to transform your business into a streamlined, goal-aligned operation that works for you? For a deeper dive into industry trends, key challenges, and actionable insights, download our comprehensive Recruitment Industry Whitepaper. It’s the perfect companion to guide you through every stage of your business journey.
As a business owner, your time is valuable.
Your working hours will typically be split between building your business (working on) and serving your customers (working in). The more efficient you become at the IN, the more money you’ll make that can be spent ON growth. The key to being profitable is having profitable clients. Sounds simple, right? But many businesses seek to grow revenue simply for the sake of revenue growth and they forget about whether those clients are profitable. So, how do we measure profitability in the service sector like recruitment? We’ve built a useful little tool to help you calculate how profitable a client is.
Client Lifetime value: Inputs
In professional services, there are a few key factors that determine how much revenue you can generate and how profitable your business can be. But the one limiting factor to profitable growth is the amount of capacity you have to deliver for your clients. It doesn’t matter whether you’re an accounting firm, a law practice, a marketing agency or a recruitment business, ultimately how much you charge for every unit of labour determines how profitable you are. You can always charge more per hour or become more efficient through the use of technology or outsourcing etc. but we want to focus on less obvious methods here.
Professional services are different from other types of businesses, as the product you are selling is the personal knowledge skills and personality involved (yes, being personable is important, no one likes a grumpy lawyer/recruiter/accountant. This is different to Canva, our favourite Aussie female-led tech icon that sells a product. Canva can sell this product that they can copy 60 million or more times over (platform subscribers every month). They invest heavily upfront in personal knowledge, skills and personality, make large losses and develop their product. The goal is then to sell, as they have, and hopefully, recoup that loss over time. This is why people get muddled when thinking about profitability in professional services because they are so often using shiny product-based success stories as models. It’s time to start seeing apples as apples.
As a professional services business, you are limited your staff hours and how efficient your tech and systems. This directly impacts your client capacity. Yes, you may have staff to complete work for you and use technology to automate large parts of your business, but ultimately one person can only talk to one client, write one report or send one email at a time. This is your capacity. Monitoring how you use time is common practice in most personal services businesses, usually, it’s a bit of a ‘guesstimation’ that quickly gets logged in a time tracker app when there’s a moment of calm. This is where the disconnect usually occurs between the IN and the ON we referred to earlier. This begs the question:
How do we optimise the profitability of client journeys?
Our tool allows you to calculate how much each client makes you in terms of profit, based on how much time is spent winning and delivering for that client. You might be surprised – the client with the largest revenue may not be the most profitable.
Enter the JD Scott + Co Client Value Calculator tool
Our ‘calculator tool’ (which is just a humble Excel workbook) helps you calculate how much you make from each client over the lifetime of their relationship with your business. The goal of this free tool is to offer access to the kind of thinking we do for people on a daily basis as a starting point for increasing per client profitability.
How does the Calculator work?
The Client Value Calculator tool works by doing some clever pre-programmed adding up. It is separated into four sections as outlined below and spits out a final number (Section D) that tells you the profit you will make from the client scenario you’ve fed into the tool.
Section A) How much your time is worth?
We use an hourly rate for this, as in most professional service organisations it is time that is the limiting factor in growing your business. In most cases, you generate more profit by increasing your capacity to bring in revenue and/or charging more for that capacity. You increase capacity by getting more bums on seats and by optimising the efficiency of said seated bums.
The market will always put a ceiling on what you can charge. That said, you can increase the amount you charge by offering higher-value services and/or adding perceived value to your business image. Then there’s efficiency. Even the best-trained staff, working with highly efficient processes, can only deal with a certain number of transactions per year. Therefore, your profit limiting factor is how much capacity (people) you have. The calculator will help you here by allowing you to adjust your hourly rate, maybe you aspire to up your hourly rate?
Section B) How much did your effort winning and keeping the client cost?
The amount of time spent obtaining contracts with clients, screening candidates and delivering services reflects how productive you are. Technology helps here, like our calculator tool. Any increase in efficiency in the journey from lead to a sale releases capacity back into your business, capacity becomes profit. A good CRM system is worth its weight, such as HubSpot or Monday. We like how HubSpot allows you to track the amount of time spent on calls or in meetings and puts this data into forecasting lead profitability.
Section C) How much revenue does the contract generate?
Simply enter in how much you will make from the contract.
Section D) How much profit did you make?
The first thing you’ll understand from the tool is profit potential. That is, how much revenue you generate, less how much it costs to win and service. The higher this number is in our calculator, the more you have profited, simple. Have a play with rates and time in the earlier sections of the tool to identify areas of inefficiency. The second learning from the tool is leveraged profit. This is a measure of how much you are gaining by working IN the business, rather than ON the business. Keeping in mind, the one thing you can’t leverage is your own time (unless your business is time machines, of course). This calculator assumes that you leverage people – that is, you get the staff to work for you to generate the results.
Understanding the results
Leverage profit over $1,000 per hour shows you are starting to make some good money. Below $250 per hour means you’re working hard for not a lot of reward. This is one of the main areas of advisory that clients come to us with, if you’d like to have a quick chat about how you can leverage your time to release capacity and improve profits, give us a call.
Client Value Calculator tool click here
Simply put, it’s the space between profit and loss that offers value…
You started your business for a whole range of reasons and making a profit was (hopefully) one of them. You measure how much you’re making with a Profit and Loss statement (or P&L for short). But your P&L can tell you a lot more than just simply how many $$$ you’ve made this month. With a simple calculation, you can glean insights from your profit and loss and open up a whole world of understanding about your business.
What is a Profit and Loss?
A typical P&L comprises several parts.
The top half shows the various sources of income a business may receive over a particular period. This may be revenue from selling goods or services or other income, such as bank interest or dividends.
Next, the costs incurred to produce the goods or services are subtracted to give what is known as the gross profit. If your gross profit is negative, it means your making a loss on every item or service you sell.
Finally, the bottom half lists all the running costs of the business, also known as overheads. This includes rent, power, and communication costs that you need to pay consistently, regardless of the levels of sales. Often they also include salary and wages. When these costs are subtracted from the gross profit, the net profit (before tax) is determined.
The net profit is how much your business made during the period. The period can be any length of time, from a day to a year (or more), but typically is either a month, a quarter or one year.
So far, so good?
Does it tell me how well is my business performing?
The results of your P&L will allow you to work out two key performance indicators (KPIs), to offer deeper insights into how well your business is performing.
Gross Profit Margin = Gross Profit / Total Sales x 100
Here is an example:
Gross Profit = $80,000
Sales = $400,000
Gross Profit % = $80,000 / $400,000 x 100 = 20%
Multiplying by 100 allows a measure of gross profit expressed as a percentage of total sales. This allows easier comparisons with previous margins as well as similar businesses, irrespective of any fluctuating costs or sale levels. Essentially, it means for every $100 in sales you generated, you make a $20 profit before overheads.
One key question to ask is has the margin improved? Is the margin equal to the industry average, or preferably even better? If not, it would be time taken to investigate the causes of this problem. For example, has there been an increase in the cost of materials or labour hours? A declining margin is a sign of potential trouble, as it means you are making less money on every sale.
Can I use my P&L to forecast profitability?
Similarly, the net profit margin will help reveal how profitable your business is when all overhead costs are deducted from the gross profit.
Net Profit Margin = Net Profit / Total Sales x 100
Here is an example:
Net Profit = $50,000
Sales = $300,000
Net Profit % = $50,000 / $300,000 x 100 = 17%
This KPI will allow you to spot any trends and differences before they become disasters. Has the net profit margin fallen? You need to dig for the causes behind this. Was it due to marketing costs that contributed no increase in sales? Are other costs increasing? If so, why?
These calculations can also be used to control costs in your business.
Final thoughts on P&L reports
The Profit and Loss Account is an important financial document that will allow businesses to use gross profit and net profit margins as benchmarks to continue to set improvement goals. These benchmarks can be internal (current performance against previous results) and external (the average for the industry type).
For a more detailed discussion, have a look at this presentation.
This was a presentation I gave to The Executive Centre back in February 2021. It shows small business owners how they can use their existing numbers to make their business more profitable and improve cashflow, simply and without complex calculations. Good decision making relies on having the right analysis and this presentation shows you how to achieve that.
The presentation sets out ways of measuring profitability, cashflow and sales and how you can use those metrics to monitor improvements in your business. Cash giving you an issue? Measuring how quickly you collect cash or how fast you spend it will quickly identify where the leakages occur. Is you new customer going to be profitable? Quickly measure the profitability of their business and work out whether you need to raise prices or not.
Want an easy way to control costs in your business? This post shows the easiest way to control costs, using the technique outlined below.
JD Scott + Co is one of Sydney’s leading Chartered Accounting firms, we aim to help build your business and wealth, empowering you to reach your goals.
