If entrepreneurship is the future of progressive industry, which I believe it is, then a shift needs to occur in the relationship between an entrepreneur and their accountant because this is one of the most important and enduring alliances they will forge. What makes an accountant valuable to an entrepreneur? In short, a valuable accountant is one who listens. This article further explores this relationship by looking at the types of accountant you may come across in your career.

A profit margin is an indicator of a company's pricing strategies and how well it controls costs. Differences in competitive strategy and product mix cause the profit margin to vary among different companies. The easiest way to remember it, is that the margin is the difference (financially) between what everything costs and what you charge. If your margins are too low, you will never make a profit and on the other hand if you set your margins too high, you run the risk of never making a sale. This article looks at how best to increase your profit margin.

There are a number of instances when you may need to determine the market value of a business. Certainly, buying and selling a business is the most common reason. Estate planning, reorganization, or verification of your worth for lenders or investors are other reasons. Valuing a company is hardly a precise science and can vary depending on the type of business and the reason for coming up with a valuation. This article looks at some of the common methods used to determine the value of a business.

The words tax, tax man, Receiver and SARS are known to strike fear into the hearts of many an entrepreneur. This is not only because it implies that you have to part with your money, but because the tax process can be a daunting one. A good place to start when getting your taxes in order is by keeping accurate records. That being said, accurate and up-to-date record-keeping is not only about making life easier when you file your taxes. It can also protect your business's cash flow and enable to run a tight ship.

Auditing in relation to SMEs has always been a debatable and contentious issue. Out of just about every SME owner that I have met, almost all would opt to have their business audited. That is, of course, if there was a combination of a reasonable price attached to it, together with a professional and efficient service guaranteed. This article explores why regular auditing is beneficial for SMEs, and what SMEs should consider before being audited.

You may think that because you have good bookkeeping and accounting processes in place and your cash flow is under control, you can sit back and relax. Unfortunately, you'd be wrong. This is the perfect time to do an in-depth analysis of where your business stands financially. If you're not so clued up about the accounting and financial side of your business, you may not realise how an in-depth financial analysis can benefit your company. Learn how to get the most out of your financial information.

SMEasy is an award-winning, easy-to-use business management and accounting system for small business that’s specifically designed for people who don’t understand accounting. SMEasy is totally different to any other accounting system. It’s developed by entrepreneurs for entrepreneurs so it understands your realities and speaks your language. You don’t need to understand anything about accounting to use it!

Does a small business owner need to understand their business's financials? Before we answer this question, let's draw a distinction between monthly accounting and financial accounting. Monthly accounting involves bookkeeping, payroll and tax. Financial accounting includes the calculations that allow you to price your products and services. Many small business owners who produce accurate monthly accounts, don't know how to then use those numbers the monthly accounts have produced, to carry out financial accounting. This article explores the importance of having basic accounting knowledge, but outsourcing your accounting needs.

While you may find the bookkeeping and financial admin side of your business the most daunting, understanding a few basic concepts will help you understand what your accountant is trying to tell you. It's important to have some basic knowledge so that it's harder for someone to pull the wool over your eyes. This article aims to provide you with that knowledge by explaining and providing examples of common accounting concepts.

Over the years, I have come across many a practitioner / entrepreneur who runs their practice / business and yet rarely glances at their annual financial statements – those things you do for SARS, or possibly the bank manager, but which cost you an arm and a leg. Financial Statements are another tool in the entrepreneurs’ arsenal in managing their business, and it should be so in your practice as well.

Proper bookkeeping is important to sustaining and expanding a business. Without it, you run the risk of hitting cash flow crunches, wasting money, and missing out on opportunities to expand. When you are devising or revising your bookkeeping routine, remember that the purpose of bookkeeping is to help you manage your business and to enable tax agencies to evaluate your business activity. As long as your bookkeeping achieves both of these objectives, it can – and should – be as simple as possible.

You can get an idea of an accountant's level of skill by looking at their experience and qualifications. But how can you tell if they can be trusted with your sensitive financial information? You can always ask business colleagues and acquaintances if they know a good bookkeeper and hope you get a personal recommendation. But what other options do you have? This article looks at the factors you should consider when making this crucial business decision.

It is imperative that your bookkeeper/accountant advise you in advance of any changes that will affect you. For example, imagine the waste of money and resources if the Company owner only found out that the has to pay VAT monthly when he reaches the R35 million turnover per annum mark, 6 months after he has met that particular milestone? The penalties and interest would be absolutely staggering! This article continues looking at the things that a good bookkeeper/accountant should be doing for you.

Every day I meet people who haven’t listened and who are now paying the price and I mean “paying” in every sense of the word. Sure a good bookkeeper/accountant will cost you money. Sure there will be administration that you will need to do on a daily/weekly/monthly and annual basis, but look at what you have to gain from than – a business where you actually know what’s going on! Here are some of the things that a good bookkeeper/accountant should be doing for you.