Blog

March 14, 2016

5 Tips for Managing Payroll in a Melbourne Small Business

Melbourne is a good place for business. No wonder many entrepreneurs choose this city for their endeavour. If you have a small business in Melbourne, then you know that one of the most important ways to keep your employees satisfied is to get the payroll system right. Glitches, even simple ones, can be a source of frustration for both business owners and affected staff. Needless to say it’s one responsibility you can’t afford to screw up and luckily, help isn’t scarce in this area. There are ways to make it efficient. Here are tips to ensure that payroll system in your business runs smoothly. Make a payroll timetable and stick to it. Creating and following a good schedule gets half […]

February 22, 2016

Lessons from Mark Zuckerberg: How to draw the line when asking for financial backing and not give up control of your startup

Source: StartupSmart How much equity to give away is one of the main concerns of entrepreneurs raising capital and rightfully so – as a startup founder, you don’t want to be fired from your own company by investors who get on board after a round of funding. ADVERTISING inRead invented by Teads And cases like this are not a rarity. Control is more important than equity share One of the mistakes first-time entrepreneurs make is believing equity share and control over the company are synonymous. They believe that in order to stay in charge of their startup they need to own at least 51% of the equity. That’s a false belief. Mark Zuckerberg owns 24% of Facebook, yet he’s in […]

February 15, 2016

Double Entry Bookkeeping Principle

The double entry bookkeeping principle is profoundly important in the world of accounting. It is essential that students of accounting gain an understanding, from the outset, of this principle that is more than 500 years old. This best way to explain the double entry bookkeeping principle is to give an example of transactions from the books of the imaginary organisation called Lots of Fun Pty Ltd. Example 1: Lots of Fun Pty Ltd purchased a car for $5,000 using a loan from the bank, the two effects are: Lots of Fun Pty Ltd acquires an ASSET worth $5,000 (the car). This is the debit affect. At the same time it also incurs a LIABILITY to the bank of $5,000 (the […]

February 9, 2016

Understanding Your Profit and Loss Statement

Most entrepreneurs start organisations because they are passionate about the primary work of the business — which usually isn’t accounting. This means that most entrepreneurs aren’t completely comfortable interpreting the monthly financial reports they receive. We have met hundreds of entrepreneurs who never look at their profit and loss statements because they do not understand them and explanations have been too complicated. While we can’t teach you to be a Bookkeeper Melbourne or Melbourne Accountant we can give you some basics that will help you with this important financial tool. All P&Ls are based on a very simple formula — sales minus costs equals profit. It really is that simple. Everything else is a matter of breaking out sales or cost into […]