Articles

As Featured in the Australian Financial Review on 19/6/19. Amidst the protest of taxi drivers against ride-sharing, the headlines of more manufacturing companies closing and uproar over telecommunications jobs moving overseas, the mature accounting industry is quietly undergoing a dramatic...

How it’s Calculated Total Net Profit (before owners’ salaries & remuneration) = _____________________________________                      Total Interest expense   How it’s Used Higher results show that the business is highly capable of servicing its interest expenses. Interest cost is often not reported on its own –...

In case you didn’t know there’s a $30,000 instant asset write-off for small businesses If businesses are wanting to purchase assets, now may be the time given recent changes to the instant asset write-off (IAWO) thresholds. The IAWO was first introduced...

  How it’s Calculated   Growth Capacity calculation:   $ of Net Profit – ($ of Current assets - $ of Current liabilities) = ______________________________________  x 100                                      ...

One point that can be made about ‘Business Benchmarks’ is that they are a tool. They are not the ‘complete answer’ to every possible question a client might ask you.   It’s not the one tool that will fix absolutely every...

Feedback loops are seen everywhere, from biological systems where they are used to achieve a stable environment to sports where performance is measured and used to make enhancements. No matter the application, the process is simple: production occurs, measurements...

How it’s calculated ((Net Profit (bos) – Current assets – Current liabilities) / Total Income) * 100 See our for explanation of Net Profit (bos) (link to https://www.benchmarking.com.au/net-profit-benchmark-calculation/) How it’s used Growth Capacity is a benchmark which shows whether the business can afford...

The Italian mathematician Luca Pacioli was the first to publish the Venetian method of bookkeeping over 500 years ago, and this has been the primary source of modern accounting ever since. You can see the relevance of his work...

How it’s calculated Net Profit can be calculated before owner’s salary (bos) is removed or after owner’s salary (aos) is removed. Net Profit (bos) calculated as: Total Income – Expenses (excluding Owner’s Wages and Superannuation)   Net Profit (aos) is calculated as: Total Income –...