Tracking your Profit

Tracking your Profit

As a business owner facing down the end of another financial year, you’re likely paying more attention to those all-important profit and loss margins. Particularly if your financials are showing you’ve made a healthy profit as that will directly impact the amount of tax due, but we often here from clients, “but where did my profit go?” The answer can be found in your balance sheet as it shows the distinct correlation between your profits and losses.

Profit and Loss

Think of your balance sheet as the “big picture overview”. While your profit and loss margins give an indication of how your business has performed over the past year, your balance sheet clearly outlines where those profits have gone. Further clarification can be obtained by comparing the figures from last year’s balance sheet with the figures from the current year. The difference between the two sets of figures will help you pinpoint where your profit is hiding.

Granted, entrepreneurs and small business owners excel at generating great ideas and novel concepts. But while you may be passionate about your business, without a degree in accounting you may not be operating with a full understanding of your financial position. This can lead to poor financial decisions that can set your back or cost you the business in the long run.

This is where a business plan or our financial awareness course can be invaluable in helping you better understand your businesses finances and equip you to make sound strategic decisions.

In the market for practical advice that’ll improve your financial literacy? We have courses starting soon, contact SMART Business Solutions – we empower you to make better business decisions that’ll ensure long-term success.

Want to grow your business & improve cash flow?

You need SMART solutions for YOUR business, not just annual tax compliance! Get the SMART team working with you. Call SMART Business Solutions today on 03 5911 7000 or reception@smartbusinesssolutions.com.au.

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SESSION 2: Successful Selling
You're already good at what you do. However, most business owners have never received any formal sales training. In a world of rapid change, tighter margins, and greater competition due to digital marketing, it’s essential that business owners dedicate time and energy to obtaining their share of the market.

This Lunch & Learn session provides valuable sales learnings and advice to help you streamline your sales process, boost the performance of your sales team and significantly improve your results.