September 19, 2016

Bookkeeping Practices That Will Save You a Lot of Trouble

Melbourne provides a great business setting for entrepreneurs. The economy is strong, thanks to its huge and diverse population and its friendly affiliations with local and international communities. If you are thinking of setting up a business in this city or perhaps you already have one off the ground, then you understand the need for efficient bookkeeping. Bookkeeping may be a mundane task in business management but its importance cannot be undermined. Simply put, good bookkeeping practices enable steady cash flow and good relationships with your employees, customers, vendors and the ATO or Australian Taxation Office. The best way to make sure your financial records and transactions are organized and your system efficient is to hire a skilled accountant or […]
January 4, 2016

How to Manage Profit & Loss

very business must focus continually on managing profit and loss to remain solvent. Profit is the money a company keeps after paying all of its expenses. A loss results from expenses exceeding the amount of sales a company makes in a specific accounting period. Companies must manage their income statements, also known as profit and loss statements, to keep earnings positive and expenses under control and in line with revenue. Initial Financial Assessment Managing profit and loss begins with an assessment of the company’s current financial position. Management must review the current profit and loss statement and compare it to the company’s last two or three years of historical data. An accountant or analyst can use this information to establish […]