Articles

The Silent Disruption of the Accounting Industry

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 innovation transition. And, the $1Billion Australian FinTech Industry is not the only one to blame. [...]
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Interest Cover Benchmark Calculation

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 – it also includes Bank and Credit Card charges.  As a result, [...]
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Instant asset write-off for small businesses

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 in 2015 as a means to help small businesses through a period of economic […]

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Growth Capacity Benchmark Calculation

How it’s Calculated   Growth Capacity calculation:   $ of Net Profit – ($ of Current assets - $ of Current liabilities) = ______________________________________  x 100                                        Turnover   How it’s Used   This ratio shows whether [...]
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Using Business Benchmarks – Three Points for Advisors

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 problem that you are going to run across.  But they will enable you as an [...]
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Discover the Feedback Loop Secret

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 are taken and the information is used to make improvements. The surprising thing is that despite [...]
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Increasing Franchisor Transparency and Accountability in Australia

Franchises are often considered, and sold as, a win-win business-model by both franchisors and franchisees. However, the recent Fairness in Franchising Report by the Federal Parliamentary Joint Committee on Corporations and Financial Services, released in March 2019, highlighted that franchisors are currently winning at the expense of their own franchisees. The scathing report has recommended [...]
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