In today’s fast-paced business world, financial literacy isn’t just an added advantage—it’s the foundation of success. A recent study, “Financial Literacy of Entrepreneurs and Companies’ Performance” sheds light on how entrepreneurs’ financial behaviors drive their companies’ performance.
Tracking your gross profit margin (GPM) is one of the most crucial financial metrics for small and medium-sized businesses (SMBs). GPM helps business owners understand how efficiently they manage production costs in relation to revenue, providing insights into profitability and pricing strategy. A healthy GPM ensures that your business is retaining enough profit after covering the cost of goods sold (COGS) to sustain operations and plan for future growth.
However, it’s essential to recognize that gross profit margin and cash flow are different. While GPM reflects profitability, cash flow measures the money moving in and out of the business. Strong profit margins don’t always guarantee strong cash flow, so SMB owners need to monitor both closely.
By consistently tracking GPM and understanding how it impacts cash flow, SMBs can improve financial health, plan for sustainable growth, and remain competitive in their industries.
The world is changing massively, and not least, the geopolitical landscape. With elections due soon in the USA, and AUS, and recent landslide election of the Labour government, the impact to small and medium businesses could be big
Intro Australia has been in a per capita recession for several months. Some businesses are thriving, while others, particularly those dependent on discretionary spending, are struggling. As accountants, your skills are critical in both scenarios. Business Advice: The Power of 1% Scenario 1 – Your client’s crushing it Your client’s gross and net margins are […]
Deciding the right time to take on new employees for small and medium businesses is tough. In this article we go through the easy steps in assessing if hiring now is the right time for you.
Jazoodle has an amazing network of truly gifted Business Advisors, Accountants, and Business Coaches. Here, we talk with Lana Ratapu, the Regional Lead of the Trusted Advisors Network. About Lana Ratapu Lana has spent around 30 years coaching and advising small, medium and large businesses and in the ‘real world’. Lana is intimate with the […]
Great, you’ve got your business health score, but how do you know if your business is healthy? what does it mean and what can you do to improve it? This post will make you an expert in minutes Business Health Score The business health score is the first place to start in assessing how your […]
Identifying risks building within your business Is Your Business Becoming Complacent? A couple of bits of news really piqued our interest this week and got us thinking. The first, a survey by CPA Australia into the effects of Covid on Australian businesses. The findings were from a survey of over 4000 Australian businesses. Its conclusions […]
Business Podcast Summary To save you time and effort (it’s what we do!) here’s a summary with links to our initial podcast series, originally created in 2021 Episode 1 Alan Jones Serial entrepreneur, investor, mentor Episode 2 Caleb Gibbins (CEO Cache) and Sean Greenhaugh (CEO TimeChi) Episode 3 Gordon Whitehead Business Advisor Episode 4 Brendan […]
Recent ABS statistics showed that between 60 and 70% of all businesses do not make it to their 5th birthday. Think of all that blood, sweat and tears within those businesses. There are a myriad of reasons for such levels. Two of the key reasons are 1) poor financial spatial awareness and 2) inadequate financial planning and forecasting. As a company, these […]
If, like thousands of other business owners, you are at times unable to see the wood through the trees, there’s some little tricks that you can use to ensure your business is on track – and these will only take a few seconds each month. We recommend checking at least every month, after closing your […]
Corporate Zombiism According to Banerjee and Hoffman, (2018) a Zombie company is an established company that is being artificially kept alive and unable to service its mounting debts. Their key takeways from their research were: [Corporate Zombiism appears]: “ to be linked to reduced financial pressure, reflecting in part the effects of lower interest rates. […]
Forward Companies, like people, evolve over time. As your startup grows, so will the mechanisms and processes in which it operates, in order to prosper. This is summarised on the below. We are arguing, that strong governance of your startup is critical during all the stages of startup, however, the exact form of governance, the […]
Introduction Cloud Accounting software, such as Xero, Quickbooks, and MYOB have revolutionised the way that organisations manage, plan and understand their businesses. One of the key differences between Cloud Accounting and traditional Server or desktop based accounting is that businesses can now easily socialise their business data to their chosen business professional, such as accountant […]
