Depreciation affects your bottom line, your tax bill, and the value of your business. Those are three good reasons to learn what depreciation is and how it works.
Depreciation lowers your profit, it can also lower your tax bill. If you don’t account for depreciation, you’ll end up paying too much tax.
What is Depreciation?
Depreciation is what happens when a business asset loses value over time. A work computer, for example, gradually depreciates from its original purchase price down to $0 as it moves through its productive life.
There are techniques for measuring the declining value of those assets and showing it in your business’s books. This area of ac...
Accounts receivable is what you’re owed by customers. Once you send an invoice (or bill), it becomes part of your accounts receivable – until it’s paid.
Accounts receivable is the name given to both the money that’s owed, and the process of collecting it. So the accounts receivable process includes things like sending invoices, watching to see if they’ve been paid, taking steps to chase payment, and matching payments to invoices (also known as invoice reconciliation). The accounts receivable process is sometimes called bills receivable, and some people simply call it invoicing.
Construction is unlike any other business. Building projects can last for months or even years – and you might be both an employer and a contractor. So how do you learn the basics of construction accounting?
Why Is Construction Accounting Different?
If you work in the construction industry, you’ll know there’s rarely a fixed business structure. The site manager probably doesn’t employ the other people working on a project. They are likely to be a contractor – and so is everyone else.
Contractors make up the bulk of the construction workforce. They may be working on several projects at the same time, spending a few hours or days on each. They might also em...
Having clean, up-to-date information and data about your customers is a vital part of running your business. But recording, tracking and accessing this customer information can be tricky if you don’t have the right tools to get the job done.
Client relationship management (CRM) tools offer a fast and effective way to manage all of this customer information. A CRM solution provides one central hub for recording all your customer data. This data could be the basics of customer name, address and contact details, notes from meetings, records of sales activity or information on the customer’s marketing preferences.
Risk is part of running a business. You can't easily plan for recession, natural disasters or other negative events, because if you take a too-cautious approach then you'll never succeed. But sometimes the odds will go against you.
If you find yourself unexpectedly further in debt than you'd like, don't panic. There are options available but they require action. If you sit back passively and wait for the worst to happen, it just might.
So take action. Manage what you owe before it becomes unmanageable. Here are some useful tips to help you take control of your debts.
Now more than ever, businesses recognise that to grow faster and smarter, they need to be online and in the cloud.
As more consumers are shifting their spending from visiting bricks and mortar stores to online shopping, businesses need to shift too. Having an online presence not only allows you to stay in the game but enables you to compete with new competitors. It also enables you to cast your net beyond geographical boundaries.
What are the benefits of moving your business online?
Leading research has revealed that most consumers like to search for information online before they shop. Nielsen found that 92% of consumers trust word of mouth referrals abo...
Business cashflow is simply money coming in and money going out of the business. Your outgoings will include things like rent, payroll, taxes and supplies. Your income will be revenue from sales but might also include investment funds or the sale of assets.
For most businesses, income and expenditure don’t always happen at the same time so focusing on strong cashflow management will help you prepare for the shortfalls and also manage surplus income.
Cashflow reports allow you to look back at cashflow in your business. This can uncover cashflow patterns over time and show you how much money you need to run your business each month.
When it’s time to sell your business you’ll want the best price for it. And the sooner you plan for sale the better, so that your business is in the very best shape to attract an investor.
The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares. Your business will mean a lot to you, but a buyer will have a more rational and pragmatic viewpoint.
Your business is your art. Selling a business is like selling art, the potential buyer needs to see its value.
Take some time to get your house in order for a potential buyer, so you can present your business as an...