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
If putting together your estate plan isn’t at the top of your priority list, you’re not alone. It’s something that people typically don’t want to do–for a variety of reasons. It’s not fun to think about what happens after we’re gone, and we often believe we have a lot of time to get our affairs in order. No matter how large or small your estate is, you need a plan… 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
Nobody wants their business to fail. Although it’s impossible to predict the future with 100% accuracy, a cash flow forecast is a tool that will help you prepare for different possible scenarios in the future. In a nutshell, cash flow forecasting involves estimating how much cash will be coming in and out of your business within a certain period and gives you a clearer picture of your business’ financial health… Read more
The turn of the year usually prompts most people to think about some business planning for the year ahead. Here are some tips to make the planning more productive. Get your team involved Business planning works best when it’s a team effort. Involve your key staff and your advisors, such as your accountant, your mentor (if you have one), and others who can contribute meaningfully to the planning, such as… Read more
Your business needs cash. Cash is what keeps your company in operation and enables it to grow, so you should know how much cash your business needs to survive. Although many people think the answer is linked solely to operating expenses, this isn’t the case. There is no single factor that determines how much cash every business needs to have on hand. Somewhere between 3-6 months of operating expenses is… 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
Cash acceleration strategies Because cash is king, we thought we would start off the new year by setting out some 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… 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
Some small business owners find themselves in the difficult position of running a business that appears to be profitable but still has no money in the bank. It’s an important situation to address. After all, a lack of adequate cash flow is one of the main causes of small business failure. Here are three reasons profitable businesses have little money in the bank, and what business owners can do to… Read more
Tax planning starts with a very simple set of key objectives and can vary from person to person. The primary objective of most people when it comes to tax is peace of mind. Peace of mind knowing that you are tax compliant. To be tax compliant means that you are up to date with all your SARS returns and don’t owe SARS any money. The simplest way of proving that… 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 needs a financial plan. Your financial plan gives you a way to monitor and review your cash flow, make adjustments to your spending, and anticipate any upcoming financial issues. It can also make you more prepared to request funding or find investors so you can bring more money into your business. Although many business owners are aware that financial planning is important, it is often overlooked. Without a… 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
Solid cash flow management is vital to ensuring your business survives, but not everyone understands what cash flow is or how to manage it. That’s likely what makes it a leading cause of stress for small business owners. In fact, a Capital One study found that 42% of small business owners say cash flow management is a major concern for them. Cash flow refers to the movement of money into… 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