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Cash Flow Management
While you may find the bookkeeping and financial admin side of your business the most daunting, understanding a few basic concepts will help you understand what your accountant is trying to tell you. It's important to have some basic knowledge so that it's harder for someone to pull the wool over your eyes. This article aims to provide you with that knowledge by explaining and providing examples of common accounting concepts.
Learn the bookkeeping basics - read about revenues and expenses, cash expenditures, inventory records, accounts receivable, accounts payable.
A downloadable worksheet to help you assess and manage your cash flow.
Benefits: This worksheet is set up to be used for forecasting changes in your receipts and disbursements and the effects the changes will have on your cash requirements of your start-up new business.
In order to comply with VAT regulations, for any sale of more than R50, you have to issue a tax invoice, with the word "tax invoice" printed on it. This is the most important document in the VAT system. The VAT Act prescribes that a tax invoice must contain certain details about the taxable supply as well as the parties to the transaction. This includes the value of the goods/services excluding VAT, and the VAT amount (calculated at 14% of the above amount), among others.
Finding and choosing the right accountant for your business can mean the difference between success and failure. All accountants are not created equal. You need the right match for your exact needs. Unfortunately, once you've selected an accountant, it's often a hassle to switch due to the detailed knowledge that person gains of your business. Therefore it pays, when selecting an accountant, to 'get it right the first time'.
The importance of good record-keeping when it comes to filing taxes and keeping accurate financials.
Does a small business owner need to understand their business's financials? Before we answer this question, let's draw a distinction between monthly accounting and financial accounting. Monthly accounting involves bookkeeping, payroll and tax. Financial accounting includes the calculations that allow you to price your products and services. Many small business owners who produce accurate monthly accounts, don't know how to then use those numbers the monthly accounts have produced, to carry out financial accounting. This article explores the importance of having basic accounting knowledge, but outsourcing your accounting needs.
Effective controls over cash flow can help a business to generate substantial wealth
Guest blog ─ A new perspective on cash flow – the problem isn't cash flow, the problem is a lack of sales
Whatever kind of business you run, you have to close your books at least once a year to prepare an income tax return — or more frequently, if you want to get a better handle on how your business is doing. An important part of closing your books is preparing a trial balance — in other words, a list of all of your bookkeeping accounts and the balance of each at the end of the period — to see if your books are still in balance. If you are already doing this, you know that it is tedious and time-consuming; if your accountant is doing it, you know that it is an added expense.
In a related article, “How not to manage your business and personal finances” I wrote about the Spenders and their business Printing Pain, and how through a lack of focus and self-discipline they landed themselves and their business in a financial mess. Their conduct is in many ways similar to that of the Hare in Aesops fable about the race between a tortoise and a hare. Contrast the Spenders with this case study, which is about the Tortoise* family and their manufacturing business called Wealth Manufacturing*.