The Difference Between Management & Tax Accounting
Do you receive your accountants reports after the financial year and discover that your Profit is non-existent, or lower than you thought? That is Tax Accounting. Alternatively, the Management Accounting System reports at a frequency that suits you (monthly, quarterly). As a result, alerting you to problems well before the end of the financial year.
Reduce Your Stress By Having Money To Pay Bills
Learn the “Piggy Bank” system. This will enable you to have the funds to meet bills for suppliers and the ATO, for instance. And, you will take a wage!!
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Choices to Develop a Management Accounting System
Building a Management Accounting System
“Management Accounting” refers to the use of accounting information generated by your business. Your business will run more effectively with this management accounting system. Here, you will learn the theoretical aspects. These include the importance of accounts receivable and payable; payroll; hiring professionals and more.
Practical Use of Management Accounting
Here, the articles deal with the practical aspects of understanding and applying this information. Learn about Management Accounting versus Tax Accounting. In addition, TrendBoards and ChangeBoards; how to effectively setup a Chart of Accounts and also accrual versus cash accounting.
Management Accounting System: Cash Flow
Why is Cash Flow so important? Many businesses ignore this at their peril. Moreover, it is the major reason for business failure. Reduce your financial stress by having money to pay bills when they are due. Also, have cash available to sustainably grow your business.
Tools: TrendBoard
Find the extra information hidden in your Profit & Loss and Balance Sheet reports. Properly interpreted, these reports will unleash valuable information about the sustainability of your business. Following are examples of what you will find: could my business fail over the next 12 months; what is ruining my cash flow; how much will I get if I sell my business right now. Click here to see an example of a TrendBoard screenshot.
Tools: ChangeBoard
ChangeBoard is a Sensitivity Analysis tool. Are you thinking of increasing prices? Then undertake this with some surety instead of flying blind. For example, a survey of 1,000 firms in Europe showed that an average of 11% increase in Profit was achieved by a 1% increase in Price. Additionally, ChangeBoard can predict changes in staffing; Profit; Cash Flow and Working Capital. Click here to find out more about Sensitivity Analysis and ChangeBoard.
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