The world stands on the edge of a new era in global trade. With looming tariffs on key imports and exports, small businesses must brace for financial turbulence
How Financial Literacy and Jazoodle Drive Small Business Success
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.
Why Tracking Your Gross Profit Margin is Essential for SMBs: A Key Financial Metric for Small Business Management
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.
Business Advice. The Little Changes Can Make A Big Difference
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 […]
Is Now The Right Time To Hire New Employees?
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.
What are the 5 business numbers that warn you of future cashflow problems?
What are the 5 business numbers that warn you of future cashflow problems? Many businesses have been in this situation – sales are great, there’s money in the bank, and yet, 6 months later, you’re struggling to finance your operations despite record sales within your business. The trouble is, you neither have the time, nor […]
Business Financing Options For US Businesses
Entrepreneurs and business owners are the financial life blood of communities, and wider economies in the provision of products and services. According to the Small Business Administration (SBA) small businesses in the USA represent 99.9% of employers and thus are the top employer for millions of people. This is similar to most advanced economies, such […]
Inflationary Pressure – How This May Affect Business
Forward Earlier this year, we wrote an article about business complacency and testing your business’ resiliency as we looked to exit the global Covid19 pandemic. One of the areas of concern, following pandemic recovery, was significant pressures foreseen in the global economy, beautifully argued by Charles Goodhart, Manoj Pradhan (2020). As we head into the tail […]
Identifying The Risks Building Within Your Business
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 […]
Is Your Business Going To Be OK?
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 […]
6 Business Indicators You Should Check Every Month
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 […]
5 things you wished your accounting system could do…
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 […]
5 Capabilities Small Business Needs To Make It To Their 4th Year.
Introduction Here in NSW, Australia, October 1st marks the start of Small Business Month. It is the start of a month of activities and education aimed at improving the lot of small business owners and directors, of celebrating the powerhouse that small and medium businesses are, and ensuring that owners, directors, and all stakeholders of SMEs […]