Continuing from our original discussion “Should I pay myself a wage” The second issue that needs to be addressed is the effect it has on perceived success or failure of the ongoing trading of the operation.  Quite clearly if I don’t pay myself an acceptable wage, my pro ... read more

You see, put simply, your business cash flow is determined by the amount or money you actually receive less the amount of money you actually spend.  Modern businesses run Accounts Receivables, Accounts Payables, hold Stock and buy equipment.  All these things are not readily noticeable ... read more

“Cash is King” ​ Cash flow is generally a misunderstood concept but importantly it is the lifeblood of any business operation.  As the saying goes “Cash is King”, without it your business cannot pay its expenses on time and this can have a “cr ... read more

There is often confusion as to what constitutes an expense.  And that confusion is usually a result of the paradigm that Taxation creates.   So as a general rule when we think of expenses we think of what taxation authorities allow us to deduct.  Foremost though, you need to ... read more

Breakeven - it’s a “word” thrown around a fair bit, but what exactly is it? ...... Breakeven is the level of sales you need to achieve in order to cover your costs.  So if your costs are $100,000 for the year - you can calculate breakeven beforehand and know that you ne ... read more