Cloud-based bookkeeping – is it worth switching?

Alexander Kohl Blog, Payroll, Productivity, Profit, Saasu Leave a comment  

Two main objectives should drive any decision whether to implement new technology or in the case of bookkeeping: software.

  • Will it reduce operating expenses?
  • Will it increase the relevance of output?

The costs are made up of the software itself, the time it is going to take to enter data and any once-off costs to make the transition.

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How to write a budget?

Karin Josefsson Blog, Productivity, Profit Leave a comment  

Write a budgetEvery business needs to write a budget.  I like to think that every household also would keep a budget, I keep both a business and personal budget, that way I know exactly how much income I have coming in and what my outgoings are, then I can establish my savings.

Budgets can be a little difficult for new start-up businesses as there is little or no history and the revenue is also not easy to calculate because no matter how carefully you plan this its always impossible to predict the future.

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The Profit and Loss Statement what does it mean?

Alexander Kohl Blog, Productivity, Profit Leave a comment  

The Profit and Loss Statement also known as the Income statement is the summary of financial performance of a business over time and is usually produced monthly, quarterly or annually.

It would not be possible to understand the financial performance of the business by looking at the individual transactions.  By grouping and summarising similar transactions, this simplifies the thousands of transactions and helps you get a picture of how well the business is going.

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Understanding what a Balance Sheet is

Karin Josefsson Blog, Payroll, Productivity, Profit Leave a comment  

Balance sheetThe balance sheet is a financial statement that shows how much a business owns (its assets), owes (liabilities) and the difference is the equity.  Its a great tool to use to evaluate the liquidity of a business.  It lists the assets that the business owns, the liabilities that are owed by the business and the value of the equity (net worth of the business).

The difference between the assets and the liabilities is the owners equity.  There are three components to a balance sheet the Assets, Liabilities and the Equity.  Its called a balance sheet because the Assets – Liabilities = Equity and therefore must balance.

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Seven Reasons to Outsource to a Bookkeeper

Karin Josefsson Blog, Payroll, Productivity, Profit Leave a comment  

Why should I outsource my bookkeeping services?  There are a number of reasons why you should outsource your bookkeeping services. While concentrating on your business, financial record keeping can become overwhelming.  Its vital to keep your finances in good order so that your tax returns are accurate.  By having your books up to date you can gain valuable business intelligence, knowing exactly how your business is performing on a regular basis and not having to wait until the end of the quarter to know where you stand.

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A Guide to Better Bookkeeping

Karin Josefsson Blog, Payroll, Productivity, Profit Leave a comment  

So you are running your own business and want to keep doing the bookkeeping your self, but you just don’t know what to do, plus you just don’t have the time to research it either.  This is pretty typical of business owner operators.  The problem is that if you don’t get your books in order it will cost you a lot more at the end of the year when you hand your Accountant a box full of receipts, plus without having your books up to date how on earth do you know how your business is performing.

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Business Intelligence – Balance Sheet

Karin Josefsson Blog, Profit, Saasu Leave a comment  

Once you have reconciled the bank account and checked your debtors and creditors are correct, now you can look at your Balance Sheet.

The balance sheet which can also be referred to as the ‘statement of financial position’ shows a detailed listing of the business assets, liabilities and equity.

The assets show the list of what the business owns and liabilities are what the business owes to others such as creditors, taxes and payroll liabilities.  The equity shows the retained earnings of the business and the amount invested by the shareholders.

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