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20
Nov
Read MoreWhy you need cloud accounting
If you read the business pages, you’ll notice the rise of cloud accounting systems, and perhaps you are wondering what the benefits might be to your business. Today, I’m going to help you strip down the hype and show you how cloud accounting can really help your business
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15
Nov
Read MoreCentury old orchard goes virtual
One of the biggest kicks we get at MYOB is when we help business owners grow their companies. Today, we are featuring Turnbull Orchards, a family business that has been around since 1892 - a whopping 120 years. Turnbull Orchards has recently gone online to make sure their customers get the best pick of cherries this summer. MYOB CTO Simon Raik-Allen chats to Phillip Turnbull, a 3rd generation food grower on cherries and cloud software below. AUDIO: Century old Turnbull Orchards goes online
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04
Oct
Read MoreEight Tips on Managing Your Cash Flow
Whether your business is growing or struggling, managing your cash flow effectively is absolutely essential, and for many, the very key to business survival. You've probably heard the statistic that over 60% of businesses that go bust are still profitable, but just ran out of cash. From a cash point of view, a business is like a sponge—it sucks in ever increasing amounts of cash, and, to get it back out again, you have to give it a good squeeze. If the business is growing rapidly or badly managed, squeezing hard won’t help, as the sponge will just get bigger and bigger! Understanding and accepting the amount of working capital a business needs to operate is the first step. How much inventory do you hold? How far behind in invoicing are you, or how much cash is tied up in work in progress? What do your customers owe you? How long does it take from paying your suppliers for the materials to extracting cash from your customers? All these will soak up your cash like rain in a desert. Next, ensure your business has enough cash to fund your working capital needs. They used to say to keep three months worth of outgoings in the bank for a rainy day. That may be a thing of the past, but if that’s the case with you, make sure you have a buffer of some sort, either personal funds available or an overdraft or revolving credit facility. Or maybe cut your drawings, as retained profits are by far the best and cheapest source of working capital. Then, plan ahead. It’s no good finding out in your down season that you can’t survive until things pick up when you've already reviewed and agreed your borrowing facilities with your bankers at your annual review some months ago. Prepare some cash flow forecasts for the coming year. If you find it difficult to predict your sales, complete all the outgoings first, and then see what sales you need to cover your outgoings. At least then you have a known target. Plan month by month, too. An excellent client of mine uses a monthly spreadsheet template to predict whether their business can pay the bills on the 20th. This works well—they had a shortfall in August and couldn't pay their Provisional tax. But, because they knew in advance, they consulted me, and I arranged Tax Pooling to cover the tax. Problem sorted, and no last minute panic and stress! Review your systems, which are so commonly poor in SMEs. Do you forget to invoice customers? Do you invoice as you go or just at the month end? How quickly do you collect your accounts receivables? Many do not even know how much is owed to them by their customers or how much they owe to suppliers. Do you capture all time, costs or disbursements to invoice? When was the last time you checked suppliers costs to ensure you haven’t been overcharged or been billed for items you haven’t received? Speed up your cash conversion cycle, which measures the time span between a business disbursing and collecting cash. 180 days or more is very common, especially in manufacturing or businesses with inventory. Ask for a deposit, put customers on retainers or get them to pay monthly. Cut your inventory levels, maybe by arranging for your suppliers to deliver the same or next day, or negotiate longer payment terms. They say that Dell and Amazon have negative cash conversion cycles—how neat is that? Make it as easy as possible for your customers to pay you. Always quote your bank account number on your invoices, and ask for direct credits or automated payments. Accept Eftpos and credit cards, and set up a PayPal account on your website. Why wait for a cheque to be posted in this day and age? Always be on the lookout for ways to cut costs or improve revenue. If something or someone doesn't save money or boost income, do something about it. Review your suppliers, phase out products or service lines that don’t fully contribute, fire your ten worst customers (oh what bliss!) and bite the bullet with difficult or unproductive team members. As the name suggests, cash management is all about managing your cash flow by understanding how a business works, having access to adequate working capital and adopting a planned and proactive approach. Running out of cash is stressful, embarrassing and not good for one’s well being, not counting the additional costs and finance charges that generally follow! Nick Roberts | Owner | Accountancy + Business Advice Centre – Empower Your Business
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21
Sep
Read MoreThe best websites and blogs for accountants to follow
Websites, online articles and blogs can be a great source of useful content for accountants. Accountants can often get a broader perspective and take their knowledge to the next level by following online content. Since rules change constantly for accountants, regularly updated websites and blogs are often the best source of information on new developments. They’re key for accountants seeking to keep themselves current with the latest. Also, many blogs are written in summary format, which makes it easier to grasp concepts and understand complex issues in a timely manner. Oftentimes there is even a worked example as part of the information provided. The timely availability of up-to-date, summarised information on changes helps me stay current on taxation, accounting, government policy changes and more. The following are my top four go-to sites for information: Australian Taxation Office www.ato.gov.au - Here, not only will you find great website content that is concise and has worked examples, but it also can assist you by offering "How To" YouTube videos. Also be sure to follow ATO on Facebook and Twitter because they offer informational posts and updates on new information. Australian Financial Review www.afr.com - This regularly updated website content will keep you informed of the latest trends in finance, economics, tax, accounting, business and government policy changes. Also, the articles explore how the changes impact accounting and tax in practice and in business. There is also content available on Facebook and Twitter posts. The www.afrsmartinvestor.com.au site has excellent articles in their newsletters. Subscribe so the news will conveniently arrive in your inbox, and staying updated will become a part of your routine. CPA Australia and Institute of Chartered Accountants www.cpaaustralia.com.au and www.charteredaccountants.com.au– With CPA Australia's My Online Learning feature, knowledge portals and online community, it’s a one-stop shop for any accountant or public practice practitioner wanting to keep themselves compliant and informed. The Institute of Chartered Accountants’ MyCommunity Blog has the latest thoughts in the accounting industry about the impact of economic, finance, tax and government policy. Plus, you can connect with your peers and leave comments. MYOB www.myob.com.au/blog - The Pulse Blog has news, views and ideas for your business ranging from government policy, to accounting software, to social media. MYOB has always provided excellent support for accountants and small businesses, and The Pulse is a great place to get advice from qualified peers. You can comment and interact with experts in various business specialties, including accounting, marketing, finance, and public relations—all of which are useful for anyone in business. Follow MYOB on Twitter at @MYOBteam to keep up with the latest posts and subscribe to the newsletter too. The Pulse is a great place to comment on the challenges of running a business, ask queries about issues with utilising your software and learn about where the accounting profession is heading. Tracey Sharah | Founder and Director, Metro Accounting
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20
Sep
Read MoreDesigning an ergonomic home office
In a recent post on challenges in running a business from home, I included as one of the key challenges the risks of stress, ill health and strained relationships from working excessive hours. I realise now I could have added the risk of working in a home office space that has not been set up to be ergonomically helpful—in other words, with everything arranged so you can interact with that environment efficiently and safely. So what would that involve?
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11
Sep
Read MoreHow can collaboration tools make us more productive?
If your business relies on teamwork then you should be looking for better ways to work together. The term collaboration has become another one of those Web 2.0 buzzwords, but it simply revolves around the age-old concept of working effectively as a team. In the internet age, collaboration combines online communications with powerful tools which let us see what others are doing and even work together on documents.
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