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How to get more time and more money with Xero
Wrights CA • September 12, 2017
Cloud Accounting company Xero recently surveyed 340 small businesses across Australia and New Zealand to find out what they thought 2017 had in store for them.
Nearly one in three businesses surveyed had a neutral outlook - believing their business will remain stagnant – and one in five had a negative outlook for 2017.
When it comes to surviving those first five (often tough) years of business, it's software such as Xero that can make all the difference.
Statistics show that while only 51 percent of small businesses survive more than five years, 88 percent of those on Xero will still be around to celebrate their fifth birthday.
In our experience, the biggest difference something like Xero can make to a small business is that it can simply provide savings in time and resources meaning you are getting paid faster and more efficiently.
More time and more money – the two things on every small business owner's wish list right?
Cloud accounting software such as Xero can eliminate inefficient manual systems which saves your team from having to double handle tasks. In fact, we've seen one of our clients reduce a seven step manual process to a simple click of a button.
By removing inefficiencies such as manually reconciling your bank account and being able to roster and reconcile payroll within a one-tap system you could potentially reduce your bookkeeping time from 60 hours a week to less than 15 hours a week.
We all know how important cash flow can be to a business. One of the easiest ways to maintain cash flow is to simply get paid on time. Simple efficiencies such as being able to set up auto reminders for invoices can save you several hours a week and increase your cash flow.
Imagine what else you could be getting done or the money you could be saving!
If you would like to find out more how we can save your business time and money by introducing Cloud Accounting solutions, please give Anthony, Chris or Doug a call on 6566 2200.
The start of a new year offers a clean slate—an opportunity to reset, refocus, and ensure your business is on solid financial footing.
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Here’s a closer look at the five key stages of business growth and how strategic financial planning can support success at every step.
As accountants, we often see businesses at various stages of growth, and one of the most common questions we encounter is: "When is the right time to grow?"
Growing your business is an exciting journey filled with opportunities and challenges.
Expanding your team is an exciting step towards growing your business, but it also comes with its own set of challenges and considerations.
Budgeting is not just a mundane task relegated to the realm of accounting; it's a strategic imperative that serves as the cornerstone of financial management for businesses of all sizes.
Navigating Financial Perspectives for Businesses
In the world of business, the management of debt is a fundamental aspect that can significantly impact an organisation's financial health and long-term success. However, amidst the myriad of financial principles, one overarching truth often remains overlooked: "Debt is always repaid with after-tax money." Understanding this principle is paramount for businesses aiming to navigate the complex landscape of finance effectively. Let's delve deeper into this concept and explore why grasping it sooner rather than later is crucial for businesses of all sizes. What Does "Debt is Repaid with After-Tax Money" Mean? At its core, this principle emphasises that any debt incurred by a business must eventually be repaid using profits that have been subjected to taxation. Unlike pre-tax earnings, which can be reinvested into the business or used for various purposes before taxation, the funds allocated for debt repayment have already been taxed. This distinction has significant implications for businesses, particularly in terms of financial planning, budgeting, and decision-making. Why Understanding This Principle Matters Accurate Financial Planning: Recognising that debt repayment relies on after-tax profits enables businesses to develop more accurate financial forecasts and budgets. By factoring in tax obligations when planning for debt repayment, businesses can avoid overextending their financial resources and ensure sustainable growth. Optimised Tax Strategies: Understanding the tax implications of debt repayment allows businesses to implement tax-efficient strategies to minimize their overall tax burden. From leveraging tax deductions to optimising debt structures, businesses can strategically manage their finances to maximize after-tax profits and drive long-term success. Informed Decision-Making: Armed with the knowledge that debt is repaid with after-tax money, business leaders can make more informed decisions regarding capital allocation, investment opportunities, and risk management. By considering the true cost of debt repayment, businesses can assess the feasibility of potential investments and prioritise initiatives that yield the highest returns. Mitigated Financial Risks: Failing to acknowledge the impact of taxation on debt repayment can expose businesses to financial risks and cash flow challenges. By proactively managing debt obligations with an understanding of after-tax implications, businesses can mitigate risks associated with excessive debt and maintain financial stability even in volatile economic environments. Partnering with a Trusted Accounting Firm At Wrights, we understand the importance of aligning financial strategies with overarching principles like "Debt is always repaid with after-tax money." Our team of experienced professionals is dedicated to providing personalised guidance and support to help businesses navigate the complexities of finance with confidence and clarity. From tax planning and compliance to financial analysis and strategic advisory services, we are committed to empowering businesses to achieve their goals and thrive in today's competitive landscape. In conclusion, grasping the principle that debt repayment relies on after-tax profits is essential for businesses seeking to optimise their financial performance and achieve sustainable growth. By embracing this truth and partnering with a trusted advisor, businesses can unlock new opportunities for success and build a solid foundation for a prosperous future. Let's work together to turn financial challenges into opportunities and pave the way for lasting success. At Wrights, we're committed to empowering businesses with accurate and actionable financial information. Our team of experienced professionals is dedicated to providing comprehensive accounting services tailored to your unique needs. To find out more about how we can help you, please contact one of our team at admin@wrightsca.com.au . Important notice: This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information.
In the realm of finance, few things are as misunderstood as accounting. Despite its pivotal role in driving business success, accounting is often surrounded by myths and misconceptions that can lead to confusion and costly mistakes. As a trusted accountancy firm committed to clarity and accuracy, at Wrights we believe it's essential to dispel these myths and provide businesses with the knowledge they need to navigate the financial landscape confidently. Join us as we debunk some of the most pervasive accounting myths and shed light on the truth behind them. Myth #1: Accounting is Only About Numbers While it's true that accounting involves a significant amount of number crunching, its scope extends far beyond simple arithmetic. Modern accounting encompasses a wide range of disciplines, including financial analysis, strategic planning, and compliance with regulatory standards. Accountants are not just bean counters; they are strategic advisors who help businesses make informed decisions based on financial data. Myth #2: Small Businesses Don't Need Professional Accounting Services Many small business owners believe that they can manage their finances effectively without professional assistance. However, this misconception can be costly in the long run. Professional accountants bring expertise and insights that can help small businesses optimise their financial processes, minimise tax liabilities, and identify growth opportunities. Investing in professional accounting services is an investment in the future success of your business. Myth #3: Accounting Software Can Replace Human Accountants The advent of accounting software has led some to believe that human accountants are becoming obsolete. While accounting software can automate certain tasks and improve efficiency, it cannot replace the expertise and judgement of a skilled accountant. Human accountants offer valuable insights, interpretation of financial data, and strategic advice that software alone cannot provide. By combining the power of technology with human expertise, businesses can achieve optimal results. Myth #4: All Accountants Are the Same Contrary to popular belief, not all accountants are created equal. There are various types of accountants, each with its own specialisation and expertise. From tax accountants to forensic accountants to management accountants, the field of accounting offers a diverse range of skill sets tailored to different needs and industries. Choosing the right accountant for your business requires careful consideration of your specific requirements and objectives. Myth #5: Accounting is Boring and Incomprehensible Accounting is often unfairly labelled as dull and incomprehensible, but nothing could be further from the truth. At its core, accounting is about telling the story of a business through its financial data. It's a dynamic field that requires analytical thinking, problem-solving skills, and attention to detail. By demystifying accounting concepts and making them accessible to everyone, we can help businesses harness the power of finance to achieve their goals. At Wrights, we're committed to debunking accounting myths and empowering businesses with accurate, actionable financial information. Our team of experienced professionals is dedicated to providing comprehensive accounting services tailored to your unique needs. To find out more about how we can help you, please contact one of our team at admin@wrightsca.com.au . Important notice: This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information.