On a recent webinar, Inspire’s Chartered Accountant, Rizal Ramzan shared his story on simple tweaks he made for our clients that have made a massive financial impact.
Here’s what he said –
I want to share a story with our Emergency Assistance Meetings – we did quite a few of them back in April, May and June. We’ve had clients that actually had the opportunity to have a deep dive on their business as well as seeing what they can do to trim the fat (unnecessary expenses.) And interestingly enough, that exercise taught them that there’s actually quite a lot of wiggle room in terms of just doing little things to increase profitability of their business, and keeping more cash on hand and how to manage cashflow.
We’ve seen clients talking the same language now and even using the forecast that we use to get them across the bridge to actually run their business.
It is actually an interesting process. Even if you’re not sure, it’s a process that you can go through to learn more about how to lift up that profitability and see how those numbers really play out. If you tweak one or two things, you can see a massive impact to your business.
If you need to have a chat with an Accountant about your business – book in a free Strategy Chat with an Inspire Life Changing Accountant today – https://inspire.accountants/chat/
Every Friday we just want to stop the world for a moment and give you a couple of real tips to think about that will make a real difference to your business and in your life.
It’s Friday and if the weekend hasn’t yet started for you yet, it will very soon. Or will it?
Quite a number of people work through the weekend and take a break on another day(s). However, a lot of people, particularly those in small business tend to work their core hours, then put in a few hours to take care of admin, then a little bit of designated panic/worry time over what the next month may or may not bring, then… Realistically though, everyone takes a break, be it short power-packed escape from the business say, every quarter or a more leisurely exhale once every year (or so) and pay the price later. But is this the best way to enjoy the fruits of your labour and if not, are their alternatives?
I know a lot of people who work for someone or a company and they turn up Monday through Friday. Their desk/cubicle/office is their home from 9 to 5 (okay 8-6), five days a week, 48 weeks a year. Some of them like it, some just shrug, some genuinely love it. But what I find is that those that leave to start their own business, weren’t loving what they were doing previously – for a variety of reasons. They felt trapped, wanted to spend more time with family and/or friends or just felt that there was something better out there for them.
What a lot of them find though is that their new life is a combination of what we just talked about: core hours of work, stress, admin – a lot of work for less-than-anticipated reward.
There is another lifestyle that can be achieved and it’s probably closer to the one that we all envisage when we get started. That’s the one where, on a monthly basis, we:
Some of you are living this life already as opposed to thrashing around in the ocean of small business, coming up for air when you can and calling it a holiday. What you need is a little magic!
Like all good magic tricks, it looks baffling, impossible even. But when you’re shown how it was done you say, “wow, that was a lot simpler than I thought it would be.”
If it feels like those 6 points are magic, it’s because they are. These are the basics that make up the magic number that we talk about so often and so passionately. You’ve heard the saying, “you can’t hit what you can’t see?” In this case it’s true.
Tip: Go ahead and assign dollar values to each of those 6 points. When you add them all up, you will have the magic number your business needs to come up with to live your alternative lifestyle, the one you always wanted.
So go on, find the magic in your magic number (we can help you with that) and have that weekend you’ve been wanting – every weekend.
For business or pleasure? That’s a question you still get asked at customs desks around the world but it should also be a question we ask ourselves whenever we roll up to a car dealership.
As with everything in the car yard or showroom, there are pros and cons and this is especially true of the question, “should I buy my next car in my company name, or my personal name?”
The short answer – it depends. The more useful response is to ask yourself what the car is being used for. If your answer is something along the lines of “I will be using the car for work: getting to meetings, picking up stock, deliveries…” there is only one answer: YES. And yes, it’s all in capitals. To be clear, if your answer was yes, stop reading and move onto signing that paperwork.
No wait. Come back. Let’s look at the slightly longer answer which is made up of a number of short questions.
December before last I bought a 2015 Ford Ranger to say, “well done Ben, that was a great year…” or something like that. Happily, 1/11 or 9.09% of all new vehicle prices are made up of GST. (Small businesses can claim that sum of money the moment you finalise the purchase by either by paying for the car upfront or confirming your finance arrangements with a bank – they pay for the car in full, for you.) So I bought my car in December 2015 and within 3 weeks I had submitted my BAS and claimed the GST which took care of the first few repayments as well.
GST can work for you as well and that is something to be considered when you are thinking about registering your new vehicle for company or private use.
Of course everybody’s circumstances are different but by and large there are only two rules to remember: if you use your car for business, your registration should reflect that and secondly, get on the phone or flick an email to someone that understands how best to put money back into your business.
Why not test drive an accountant today.
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