Bowling logo
P. 02 4983 1611 | F. 02 4983 1730 | E.

Firm News

Short-term vs long-term financing

Posted on August 19, 2019 by admin

Maintaining healthy cash flow can be challenging; between ongoing expenses and bills, poor cash flow can severely impact your customers, staff and bottom line. Business owners need to understand the differences between short and long-term financing when developing a cash flow strategy. There are various sources of financing available, with each being useful for different situations. Choosing the right source and mix is key for good cash flow, with financing options often being classified into two categories based on time period: short-term and long-term. To find the right plan for you, determine your needs and then match a financing option to meet those needs. Short-term financing:Short term financing, or working capital financing, looks at needs that arise in relation to financing current assets – for a period of less than one year. Working capital is the funds that are used in the day-to-day trading operations of a business. Short-term financing can help you to pay suppliers, increase inventory and cover expenses when you do not have sufficient cash on hand. Long-term financing:Long-term financing options can help you invest in overall improvements to your business, for a period of more than 5 years. Capital expenditures, such as upgrading equipment, buying additional […]

Keep Reading...


Getting on top of cash flow

Posted on August 6, 2019 by admin

Managing cash flow is critical to the success of a small business. While it is necessary to be profitable, your profit is a number that shows up on your accounts at the end of the year whereas your cash is the money you have in the bank. By incorporating the following tricks, you can help to maintain the flow of money coming in and keep the business running smoothly. Prepare a cash flow projection:There are always unforeseen challenges or changes in the marketplace. While you won’t always be able to predict or forecast these, you can gain a better grasp on industry trends and patterns. Drawing up a cash flow projection can help you plan the ups and downs of your spending. In your projection, be sure to include: Cash receipts, including income from sales and income from financing. Cash disbursements, including all expenses (cost of goods, operating expenses, loan payments, income tax payments, etc). Net cash flow — opening cash balance plus receipts, minus disbursements. Ending cash balance. Generate new business:The business is going well; you’re meeting your targets, money is coming in, and you’re happy. This is not a time to relax, it is a time to be […]

Keep Reading...


What to consider in an employee share scheme

Posted on June 24, 2019 by admin

Employee share schemes (ESS) provide employees with a financial share in the organisation that they work for. They can be offered by organisations as a way to grow their business by attracting, retaining and motivating their employees. How they work:ESS gives employees shares in the organisation they work for at a discounted price, and the opportunity to purchase shares in the future. The discount refers to the difference between the market value of the ESS interests, and the amount paid by the employee to acquire them. This discount forms part of an employee’s assessable income, and will need to be included in their tax return. Employee share purchase plans offer eligible employees the chance to purchase shares from their employer, often through a loan. The shares can be paid through a salary sacrifice plan over a set period, or by using the dividends received on the shares. Employees who are on a higher income may be eligible to receive shares as a performance bonus or as a form of remuneration instead of receiving a higher salary. Possible limitations:There may be restrictions on when employees can buy, sell and access their shares through an organisation’s share scheme. For example, employees may […]

Keep Reading...


Ratio analysis methods for your business

Posted on June 11, 2019 by admin

Financial ratios are useful tools for business owners to monitor, analyse and improve their business performance. By using ratio analysis methods, you can gain insight into a company’s liquidity, efficiency and profitability by comparing the information contained in its financial statements. Solvency:Solvency ratios measure the company’s capacity to fulfil long-term financial commitments. Debtor days is one of the key measures of this ratio analysis method. It shows the average number of days that a business takes to collect invoices from their customers. The longer it takes to collect, the greater the number of debtor days. When debtor days increase beyond normal trading terms, it indicates that the business is not collecting debts from customers as efficiently as it should be. The formula for working out debtor days is: (Trade receivables ÷ Annual credit sales) x 365 days Profitability:Profitability ratios help measure and evaluate the ability of a company to generate income relative to revenue, balance sheet assets, operating costs and shareholders’ equity during a specific period of time. The net profit margin measures what percentage of each dollar earned by a business ends up as profit at the end of the year, the formula is: Net income ÷ Total revenue […]

Keep Reading...


Risk management strategies for investors

Posted on May 27, 2019 by admin

When it comes to investing your money, there is the possibility that it may not perform as well as expected, possibly losing you some or all of the original investment amount. While no investment is free of risk, some carry more risk than others. These are a few strategies that can help minimise the risk of investments without sacrificing your returns, and not be left out of pocket in volatile and fluctuating markets. Diversification:Investment diversification involves buying asset classes or sectors that are not correlated. Diversified portfolios give you the advantage of being less exposed to particular economic events. It can be an effective way to limit your risk, as the fall in the value of one asset class may be offset by an increase in the value of another. Keep goals:When buying growth investment assets, you may expect to see some short-term volatility. It would be helpful to separate your short-term and long-term goals and determine how much will be needed for each. Consider investing for the long term in growth assets, while setting aside funds for the short term in a cash investment or another similar defensive asset, ensuring short term funds are available and longer term growth […]

Keep Reading...


Consolidating your debt

Posted on May 10, 2019 by admin

Debt consolidation loans are a financial solution that may be suitable when you have multiple debts at once and are struggling to manage them all. Debt consolidation is the process of bringing together all of your current outstanding debts into one single repayment. This is typically done by taking out a new personal loan to repay your existing debts and then paying this new loan back over a set term. While they may seem like an appealing idea, there are a number of potential negatives to consider as well as the benefits. Pros: Consolidating your debt into one single loan to repay can be easier to track and manage. Debt consolidation loans that are taken out with a fixed interest rate mean that you will always be able to stay on top of your money and plan your finances accordingly. Those taking out a debt consolidation loan may benefit from a lower interest rate compared to what they are currently paying. This means that over time, you can expect to save money. While you may end up paying more overall, stretching the term on your personal loan could mean that you will spend less towards paying off the debt on […]

Keep Reading...


Consolidating your debt

Posted on by admin

Debt consolidation loans are a financial solution that may be suitable when you have multiple debts at once and are struggling to manage them all. Debt consolidation is the process of bringing together all of your current outstanding debts into one single repayment. This is typically done by taking out a new personal loan to repay your existing debts and then paying this new loan back over a set term. While they may seem like an appealing idea, there are a number of potential negatives to consider as well as the benefits. Pros: Consolidating your debt into one single loan to repay can be easier to track and manage. Those taking out a debt consolidation loan may benefit from a lower interest rate compared to what they are currently paying. This means that over time, you can expect to save money. Cons: Without being mindful of your finances, the lower regular payments as a result of consolidating your debt may lead to you spending more overall. This creates the potential to accrue more debt and pay more in the long term. Failing to keep up to date with regular loan payments could end up affecting your credit score and put […]

Keep Reading...


Ensuring your invoices are paid on time

Posted on April 29, 2019 by admin

Having a healthy supply of cash is vital for the survival of small businesses, as it is required to operate and enables you to pay workers, rent and other expenses. Unpaid invoices can lead to poor cash flow, a significant reason small businesses fail. Late invoice payments can add to the strain of being restricted by limited resources. As a business owner, you should take the necessary steps to ensure prompt invoice payments and reduce your stress. Structure:A structured collection process when it comes to chasing payments can provide a strong foundation to minimising losses as your business grows and can release thousands of dollars into your cash flow as a result of faster payments. By embedding certain practices into your day-to-day operations, the time dedicated to invoicing and chasing late payments is more efficient and effective. Prompt invoicing:Fast and correct invoicing is a great way to encourage faster payment. The earlier that you send your invoice will mean the client can make payments as soon as possible. Contacting clients after sending your bill allows issues to be addressed quickly. Checking if they have received your invoice and are happy with the services that have been provided is a good […]

Keep Reading...


The pro’s and con’s of using someone else’s money

Posted on April 1, 2019 by admin

Borrowing money to invest, also known as ‘gearing’, can be a risky business. While it can increase your returns when markets rise, losses can be extreme when markets fall. It is important to understand the risks involved when deciding whether borrowing to invest is right for you. Benefits:The main benefits of borrowing to invest are: It gives you more money to invest. If you are on a high marginal tax rate then there may be tax benefits as you are usually allowed a tax deduction for interest payments on the loan. Risks:Some major risks of borrowing to invest are: The income that you receive from the investment may be lower than expected. Interest rates on the loan could rise. Income risk in circumstances where your income may stop, such as illness or redundancy. It is vital to understand and have a plan in place to manage these risks. As borrowing to invest is a high-risk investment strategy best suited to experienced investors, you should seek further professional financial advice to make sure that this is a viable option for you.

Keep Reading...


Income investing: Managed funds vs. ETFs

Posted on March 18, 2019 by admin

There are a number of options when it comes to choosing an income investment scheme. Investments that generate regular income can be useful in a number of various situations, for example funding your retirement lifestyle. Options to consider include managed funds or exchange-traded funds (ETFs). Managed funds are where your money is pooled together with other investors and then bought and sold by an investment manager via shares or other assets on your behalf. ETFs are a type of managed fund that can be bought and sold on a secondary market like a share. Managed funds: Pricing: When buying and selling managed funds, investors won’t know their exit price until the next day. A sale takes place either at the end-of-the-day price or on the net asset value of the assets. You could have to wait several days to receive your money from the sale. Risk: It is up to the individual fund manager to invest in particular stocks, allowing you to access a diversified portfolio made up of varying asset classes. This can reduce your level of risk by minimising the impact of poor performance by a particular industry or sector. ETFs: Transparency: ETFs are typically more transparent than […]

Keep Reading...


Bowling and associates services

accounting services

Bowling and associates services

taxation services

Bowling and associates services

self managed super funds

Bowling and associates services

bookkeeping

Bowling and associates services

company secretarial

Bowling and associates services

business support

Bowling and associates services

audit
services

Bowling and associates services

business
plans

Bowling and associates services

cloud accounting