A property rental accounting checklist is a useful tool for any landlord. It helps you organise all the information required to prepare accurate accounts for your rental properties. In the UK, accounts are prepared for each tax year, which runs from 6 April to 5...
Financial jargon can make running a business feel like landing in a foreign country without speaking the language. You know roughly where you want to go. You know what you are trying to achieve. However, once people start talking about revenue, liquidity, assets,...
Operating profit margin shows how much profit your business generates from its core activities after direct costs and operating expenses come out. Sales alone do not tell you whether the business runs efficiently. Instead, this percentage helps you compare...
Are you a small business owner trying to wrap your head around the world of accounting? One term that might have you scratching your head is "depreciation." So, we're here to break it down in an easy-to-understand way. But, let’s start with the official way this...
Increasing small business profitability is more than just lowering costs or raising prices. It's about achieving a balance between managing costs, optimising processes, and creating value that keeps customers coming back. We all know that running a small business is...
Do you want to learn more about profitability analysis but aren't sure where to start? Understanding your company's profitability is critical for making sound decisions that can lead to increased financial success. Profitability analysis is a financial tool used by...
Sales forecasting is such a valuable element of business planning. It is the underlying plan of all plans! This is so because when sales forecasting is done right it can enable the business owners or managers to: be comfortable when making business decisions course...
Understanding the different types of business costs is crucial for effective financial management. Because your profit will depend on the types of costs that prevail in your business. This blog looks at the relationship between the types of costs in your business and...
Operational gearing helps us understand how the mix of fixed and variable costs can magnify changes in business profit. Two businesses can have the same sales, the same total costs and even the same starting profit, but react very differently when sales rise or fall....
Responsibility centre KPIs help you measure performance in the right parts of your business. Different teams, departments and business units control different things, so you should not measure them all in the same way. In this episode, we look at practical KPI...
When comparing sales turnover vs profit, it is easy to give turnover more importance than it deserves. A growing sales figure can tell us useful things about a business, but it does not automatically mean the business is financially successful. Turnover tells us the...
Effective KPIs help you understand how your business is really performing. Good key performance indicators do more than track sales. They help you monitor cash flow, profit, working capital, customer behaviour, operational speed and quality. In this episode, we look...
How much should I charge for my time is question I am often asked. A great question by the way If you're like most small business owners and entrepreneurs, you're always looking for ways to earn more money. But how do you know what to charge for your time and...
Gross profit explained simply: it is the money left from sales after you take away direct costs or cost of sales. Sales alone do not show whether your business is healthy. Instead, gross profit helps you understand pricing, costs, margins and whether each product or...
What is operating profit? It shows how much money your business makes from its core activities after you take away direct costs and operating expenses. Sales alone do not tell the full story. Instead, operating profit helps you understand how well the business...
But cash basis accounting and traditional accounting can produce different profit figures in the same year. Understanding why helps you make sense of your tax return, your business performance and what the numbers are actually telling you. We use a straightforward...
Do you know What is the difference between cash and profit ? The majority of the time, people think that businesses only need to be profitable for them to last. But even the most profitable businesses go under, and often for a single reason. It’s because the people...
This weeks blog and video continues with pricing, moreover How you should price your products, and how to calculate your product prices . In addition you need to know this when developing pricing strategies for your business. Our video goes through this So, if your...
What is profit? There are several important elements that make up your business story, some more important than, some less important than others. However, I think it would be safe to say that ‘profit’ is one of if not the most important element. Without profit where...
Profit for tax is not always the same as the profit shown in your accounts. It is also not the same as the money sitting in your bank account. Your business profit, your accounting profit and your taxable profit can all tell different parts of the story. In this...
The break-even point is the financial milestone your business reaches when sales cover all costs, with no profit and no loss. Before we can build stronger profit, we need to know the sales level that keeps the business standing still. Understanding break-even helps...
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