Accounting services

When running your own business, we believe the following information is crucial:

• The bottom line profit – assuming you are running your own sole trader business and the bottom line profit shows $50,000 profit before your wages. If you employ somebody to replace you, you need to pay the employee’s wages of $50,000. So in this situation, your business is just “break-even”.
• Your assets and liabilities – assuming the above business situation while at the same time having to invest your fund of $100,000 to start the business. You may need to re-think whether it is worthy to invest in a business that doesn’t generate a profit, or decide if it’s better to invest your money that will give you at least 5% return through a term deposit.
• Sufficient cash flow to run my business – cash flow is the blood that makes sure that business operations run smoothly. Every business has a peak and off-peak time. During the off-peak time, the sales may be down, and you need to make sure that you have enough cash flow to cover the business operations. Be aware that ASIC considers directors personally responsible in making sure that their business publicly operates in a solvent situation.
• How to sustain my business in the future – what should I do to make sure that my business remains sustainable in the future? New technology may be introduced, and it may threaten the existence of your business. You need to make an informed decision on which phase of your business you are in right now. By understanding this, you will know if there is a potential market demand for your business.