It is the beginning of new things to come, just like any day really.
We do not know what it will bring until it has passed.
I trust you all had a fantastic Festive Season and you might still be on holidays as many other Australians are right now. However, the astute business owner hardly ever takes a break from thinking about taking his or her business to the next level of success.
Maybe you are promising yourself that in 2017 you will at least understand your business finances. If so, here is a little help from a fellow business owner:
Understand the four kinds of money created in your business
Income | Profit | Flow | Equity
Income is what your business is paying you as an owner, it’s what you get paid for going to work every day.
Profit is what’s left over after the business has conducted its job effectively and efficiently. If there is no profit it means that the business is not doing its job.
Flow is what money does in your business, as opposed to what money is. No matter how big your company is, money is either there or it is not. Flow means knowing where the money is and where it will be when you need it.
Equity is the financial value placed on your business by a prospective buyer. Thus, your business not your service, is your most important product.
If you understand these four components you are well on your way to success. To understand the above you must understand your books. With this in mind start the new year with confidence, surround yourself with people who lift your skills and help you along the way.
All Things Sorted is here to support you on this road, as a registered BAS Agent and certified Bookkeeper we are here to bring your business books up to date and take your business to the next level of success.
Our wish for you in 2017 is an abundance of health and success in business.