Following on from our previous scaling up posts , the next MUST HAVE is keeping two separate sets of books. One for compliance or tax reporting and the other for internal management reporting – the goal of which is to simplify the numbers. Right about now you are probably thinking, how does this save me time and benefit me… “now I need to have two accounting programmes for different reasons”… Read more
Cash acceleration strategies Because cash is king, we thought we would reshare our blogpost on our useful tips on how to accelerate the flow of cash through your business. Understand your cash conversion cycle (CCC) Being able to improve how cash flows through your business requires an understanding of your cash conversion cycle. Your cash conversion cycle measures how long it takes for a Rand spent on anything (payroll, rent,… Read more
Let us commence by understanding and answering the following questions that are relevant: 1. What exactly is Trend Analysis? – This is a technique used to analyse an entities financial data by collecting information from multiple prior periods and using this information to generate valuable insights, to assist in understanding the past and making data based decisions to change the future. 2. What can Trend Analysis be used for :… Read more
Why should you invest in proper accounting systems? If the #1 weakness of growth firms is marketing, the #2 problem is accounting. Accounting is often underappreciated and if not done correctly can lead to poor decision-making. Why should you invest in proper accounting systems? Clear the distortions As businesses get bigger, so do the nature of the day-to-day and week-to-week transactions. For a small business, basic bookkeeping,… Read more
Cryptocurrency tax principles for South Africans SARS applies the normal income tax rules when it comes to Cryptocurrencies, in fact, the term Cryptocurrency is not even defined in the Income Tax Act. So, if you have bought and sold Cryptocurrency in the recent past what does that mean for you as far as your tax is concerned? Here is a short summary: The tax treatment of crypto assets would essentially… Read more
Feature highlights of Xero Projects Gain greater control, flexibility, and financial visibility of your projects Project profitability – make sure that you are making your target profit on projects View how much you have invoiced by project; Manage your total expenses at a line item level ensuring that you are making a profit on the project by matching all project costs to the amounts invoiced; Create purchase orders (PO)… Read more
The month of May involves two important payroll related deadlines. Return of Earnings (ROE or COIDA) submissions and EMP501 submissions are both due by the 31st of May 2022. Our blog explains who needs to submit them and why they need to be done. ROE The Compensation for Occupational Injuries and Diseases Act (COIDA) requires all employers to submit a declaration, known as a Return of Earnings (ROE). The return… Read more
Business dashboards are a valuable business intelligence tool, offering an “at-a-glance” big picture view of a company’s performance. Some business owners use a dashboard to track KPIs relevant to just one aspect of their business, such as sales growth, marketing, or financial data. Others rely on an executive dashboard for an overview of data culled from various sources (e.g. their accounting software, CRM tools, and website analytics). The great advantage… Read more
With the potential for business life to return to something resembling normal, it’s a good idea to take a look at your budget and see where you may need to shift some of your priorities. Pay attention to how your spending over the past few years affected your business and either helped you achieve, or took you away from, your overall goals. Considering how your business and your employees functioned… Read more
EVERYDAY IS MONTH END |YEAR END With another tax year-end rolling over, every accountant and business owner will be thinking of year-end, and what that means to them. We thought it would be a good idea, to explain what it means to us. If things are done correctly, year end should be just another day, and nothing to be feared. Sure, there is provisional tax to pay, and an… Read more
If you’ve been considering making the move to a cloud-based accounting system, you’re not alone. Cloud technology has impacted many business functions, including making managing financial aspects of your business easier and more efficient. Cloud-based accounting moves your accounting from being hosted on your computer’s harddrive to an online platform. Cloud-based platforms like QuickBooks and Xero offer important features that save you time and money, freeing you up to focus… Read more
4 Reasons Your Business Should Consider Digital Receipts, With a Smart Cloud Accounting solution like Xero Receipts are vital to successfully running a business. You need receipts to track your purchases and expenses. Your clients need receipts for their tax purposes and to manage their finances. Paper receipts have been around a long time, so many people are used to them and may even be resistant to moving away from them.… Read more
If you’re like most small business owners, you spend the majority of your time managing daily operations, keeping customers happy, and looking for new ways to grow. Spreadsheets, cash flow analysis, and financial projections are probably not your first passion. However, measuring profitability, creating realistic budgets, and planning ahead for the future is crucial to your professional success. Follow these four tips to get a handle on the numbers, and… Read more
Every business can benefit from dedicated financial management expertise, but very few small businesses have the means to hire someone full time—particularly in the lean early years. Unfortunately, it’s those first few years when a company is just starting up that establishing good habits with managing financial resources is so important, and, over time can even make or break a business. Hiring a virtual CFO is an affordable option for… Read more
“Are home office expenses tax-deductible?” With more and more people working from home, we often get asked what the tax benefits are? The truth is that the criteria are quite strict, and the benefits may not always be that substantial. Let us break it down for you. The office that you are claiming the deduction on must be appropriately equipped and used regularly (i.e., more than 50% of… Read more
Preparing your End of Financial Year (EOFY) information often feels stressful—there are receipts to sort out and reports to review, and you need to make sure you have all the necessary information about your income and expenses. It can be overwhelming, and it can make the EOFY feel daunting. The end of the financial year isn’t just a time to collect receipts and find invoices, however. It’s also a time to… Read more
4 REASONS WHY YOU SHOULD OUTSOURCE YOUR BOOKKEEPING AND ACCOUNTING TO 118ACCOUNTING As a small business owner, running your business takes priority – accounting for the accounting in your business…. probably only happens when you have a gap – why not look at ways to make that process simpler and faster, by outsourcing your bookkeeping and accounting to 118Accounting? 1 Lower Cost How do you value your time? Every small business owner knows that time is one of your most valuable assets. Having more… Read more
Why a good accountant is critical for small business. In order to know how well your business is doing you need accurate and up to date financial information and peace of mind that you are tax compliant. It sounds obvious but often as a small businessperson you are so focused on your passion of delivering great service to your customers, whatever that may be, that these pesky administrative details can… Read more
If you have a small business or plan on starting one here are a few tips to help you keep track of your finances. Planning is everything. You need to know what is expected of you, what information you need to record. What tax do you need to pay, what’s your income and expenditure? Don’t mix your private money with your business – Open a separate business account and keep… Read more
Accountants have always held a special place with their customers. When it comes to Annual Financial Statements and tax the average accountant can rattle these off fairly easily. We have reached a new era in accounting! With the advent of digital 2.0 (https://www.cio.com/article/3287929/whatisdigital2.0.html) accountants have access to technology that puts them in a new place when it comes to what they can add. The value comes in two areas. Let… Read more