How to Use the Extended Instant Asset Write-off in 2020
As part of the 2020-2021 Federal Budget, the Australian Government announced an increase in the instant asset write-off by removing the $150,000 per asset limit in response to the economic…
What the Coronavirus Stimulus Means for SMEs
The Australian Government has unveiled a coronavirus economic stimulus package worth $189 billion. Here's what Australian SMEs need to know.
Federal Budget 2020: What are the Opportunities for Business Finance Brokers?
The Federal Budget for 2020-2021 released in early October included a number of developments designed to help small-to-medium businesses recover from the COVID-19 pandemic and grow. Some of these measures will motivate business owners to consider new finance options. Here we cover some of the budget measures and what they can create opportunities for finance brokers.
Letter of Credit: What Is It and How Does It Work?
A letter of credit is a way for banks or other financial institutions to guarantee payment and the delivery of goods. This form of payment can seem confusing if you’re not familiar with how it works. Let’s take a closer look to understand letters of credit and how they can facilitate transactions between buyers and sellers, particularly in international trade.
How to Collect Unpaid Invoices
If late payment of invoices is common for your business, you are not alone. SME owners say that 60 per cent of their customers don’t pay by the due date. If this describes your businesses, here are some tips on how to collect overdue invoices from your customers.
Days Sales Outstanding and How to Measure It
How do you measure the effectiveness of your accounts receivable management? Days sales outstanding (DSO) is a benchmark that shows you how long it takes customers to pay you after creating an invoice. Here we delve into the details of how to use this metric and what you can do to improve it.
Cost of Goods Sold and How to Calculate It
The cost of goods sold plays an important part in how your business is performing. Besides being used in calculating business profit, it can help you set prices for your products. Here we delve into the concept of cost of goods sold (COGS), how to calculate it and how to apply it.
Cash Conversion Cycle: What Is It and How Can You Improve It?
The cash conversion cycle is a way to measure the amount of time it takes a company to convert its cash on hand to additional cash. The process includes purchasing or creating inventory, selling it and eventually getting paid. Here we explore how to calculate the cash conversion cycle and how to improve it.
6 Tips for Reducing Debtor Days for Law Firms
Australia’s legal services industry brings in over $20 billion in revenue each year and employs 112,000 people. The delay in getting payment for services provided is a significant challenge for law firms. In fact, smaller firms wait 52 days on average to get paid after issuing an invoice, while larger firms wait 92 days. Let’s take a closer look at this problem and how law practices can bridge the large gap between providing legal services and getting paid for them.
Days Inventory Outstanding: How to Calculate and Apply It
Days inventory outstanding measures the average number of days that a business holds inventory before it is sold. It shows how long it takes to turn inventory into cash and a company’s operational and financial efficiency. Here we’ll show you how to calculate days inventory outstanding (DIO) and how to use it to improve inventory management.