SARS Tax statistics were released for 2023 in Dec and it is always sobering reading….

SARS Tax statistics were released for 2023 in Dec and it is always sobering reading…. It is probably not news to most, but it is worth highlighting some stats to keep it top of mind. The massive numbers involved generally tend to overwhelm a reader and result in a lack of focus on the key takeaways. So lets dive in: These stats are revenue collected in the 2022/23 tax year…  Read more

Book review – Sweat, Scale sell by Pavlo Phitidis

My favorite book read this December break – Sweat, Scale sell by Pavlo Phitidis. The book is jammed pack with golden nuggets of practical advice for any entrepreneur looking to build an asset of value. Key takeaways; – Great framework consistent with frameworks that I use (EOS | Scaling up). This is complimentary so it reinforces learning, but has a key focus that your business should be built to sell.…  Read more

Top 3 reasons for failed small business Finance system implementations (and how to avoid it)

Top 3 reasons for failed small business Finance system implementations (and how to avoid it) 1. Poor planning; 2. Change management and specifically training and handholding of users; 3. Competence to deal with change and complexity; Far too often the software platform whether it be Xero or Sage gets blamed for a dysfunctional or sub optimal finance function. Whilst my preference for a platform for small businesses is always Xero,…  Read more

Forget about setting goals focus on this instead

Forget about setting goals focus on this instead. The title of one of my favorite articles by James Clear (Author of Atomic habits). As the calendar year rolls over, many of us look to review what our big rocks for the coming year will be. I have found this article (link) from James Clear to be particularly useful in guiding me on what to focus on. I have included some…  Read more

Management Accounts, what? why? & how?

What are they? Management Accounts are financial reports that provide detailed and up-to-date information about a company’s financial performance and position. These reports are generated internally generally monthly for the purpose of helping business owners, managers, and banks make informed decisions. Why do we do it? Unlike formal financial statements like the annual balance sheet and income statement (profit and loss statement) that are prepared for external parties, management accounts…  Read more

Process automation – what is it and how do we do it?

A process where we Simplify, Standardise and automate time consuming tasks | processes that eat away at valuable resources who can be used more effectively within your business. These time-consuming tasks could be anyone of the below: Generating client invoices; Collecting cash from a client; Generating a pay slip Paying an employee; Capturing a supplier invoice; Paying a supplier; How do we approach solving these problems for our clients? It…  Read more

A Deep Dive into Key Financial Ratios for Informed Decision-Making

A Deep Dive into Key Financial Ratios In our previous blog post, we introduced the significance of key financial ratios in evaluating business performance. Today, we will take a deeper dive into each category of financial ratios, providing you with actionable insights and practical guidance. Understanding these ratios will empower you to make informed decisions that drive your business’s success. Profitability Ratios Maximizing Returns on Your Efforts. Profitability ratios enable…  Read more

Unlock business success with an understanding of key financial ratios.

Understanding Key Financial Ratios for Sustainable Growth Analyse profitability, liquidity, and solvency for sustainable growth. As a fast-growing business, navigating the financial landscape can be challenging. To drive your success, it is crucial to have a solid understanding of key financial ratios and what they mean for your business. In this blog, we will explore the significance of these ratios and how understanding them can assist you in harnessing their…  Read more

Tax Prep Checklist

As the upcoming tax season approaches, we want to make the process less painless and a bit more enjoyable (or at least less daunting!). We’ve prepared a tax preparation checklist that will guide you through the necessary steps, minus the boring tax jargon. Let’s make taxes as painless as possible! Tax Prep Checklist # List 1 ⃣        Gather all relevant documents: 2 ⃣        Review personal details: 3 ⃣        Declare additional…  Read more

Two separate sets of books…for the right reasons

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

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

2023 Budget Summary

118 Budget Summary The news flow in this year’s budget is probably best described as neutral. The good news is that SARS revenue collections were ahead of budget (as SARS collection agents we will take some credit – queue the high fives!). So, no tax increases, but in fact tax relief for individuals and businesses in the form of incentives for investment in solar generation. The bad news is that…  Read more

Trend analysis and early warning systems to support better prediction

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

Better quality accounting data to support decision making

Can you log into your accounting system right now and answer the following questions: What was your profit last month/last quarter/last year? How much cash do you have available, and how much is tied up in accounts receivable? Who do you need to pay this month, by when and how much? Can you effectively manage your cashflow ? Cashflow advice for small businesses Do your assets exceed your liabilities? If not,…  Read more

Financial Dashboards

Using Microsoft’s visualisation tool PowerBi, 118 have built a financial story telling tool that integrates seamlessly with Xero to help you make sense of your numbers in double quick time. They say that pictures tell a 1000 words! Have a look at some of the cool visualisations that we have built for some of our clients so far using the financial story telling tool.   If you would like to…  Read more

Financial Freedom?

What does it mean to you? It could mean the freedom to follow your passion in your career daily, while being paid a fair market related salary. For our clients, it could mean freedom from the daily grind of having to do finance or admin tasks, whilst having the peace of mind that their accountant has got this! To me financial freedom means the point at which I am financially…  Read more

Why should you invest in proper accounting systems?

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

Why do I pay Workman’s Compensation – a story that will open your eyes?

Why do I pay Workman’s Compensation – a story that will open your eyes?   Most of us get caught up in the mechanics of submitting workman’s compensation returns and meeting deadlines. It is only when disaster strikes, and a staff member gets injured that you stop and really understand why you submit your return and make the payments. Just over a month ago, one of our clients had a…  Read more

Cryptocurrency tax principles for South Africans

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

App review – Quotient

App review – Quotient Overview With Quotient, you can create professional-looking quotes that will delight and impress your customers. Specify quote items to be optional – so that your customer can pick and choose, and their quote total will automatically update. You can also add images to really enhance your offer. Your customer can ask questions directly on the quote, keeping all correspondence in one place. Keep track of everything…  Read more

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