JOHN CLARKE, TAX AND FINANCIAL ACCOUNTING ADVISORY

FREE BUSINESS HEALTH CHECK

JOHN CLARKE, TAX AND FINANCIAL ACCOUNTING ADVISORY

I don’t know if you’re like me but staring at pages full of numbers often isn’t very helpful in making business decisions. I worked in one organization where the profit and loss statement the Board had been getting before I started was nine pages and meaningless as a tool for decision making.

The organization had three main sources of income and expenditure. I provided a onepage breakdown showing for each of these sources of income and expenditure so the directors could make better decisions. To help draw attention both to areas that were going well and needed attention I used emoticons. I also use charts to identify trends.

My dream is that instead of businesses thinking of their numbers as figures for the tax return, that they look at what they mean for the business.

7 CRITICAL LEVERS FOR YOUR PROFIT AND CASHFLOW

1. How much money is owing to the business (receivables or debtors

2. How much money is owing by the business (payables or creditors)

3. Overheads

4. How much stock (inventory) the business is holding

5. The price you are selling goods or services for

6. The volume of sales

7. Cost of goods sold

Pain Points for Your Business One size doesn’t fit all. Your pain point might be different to your neighbour’s. One of you might have slow payers, another might not be turning their stock over quickly enough.

FREE BUSINESS HEALTH CHECK

During July and August 2021 Success Tax Professionals Port Macquarie office would like to offer a confidential no-obligation free one-hour business health check to businesses in Mid North Coast to help you make sense of your numbers.