colin's corner

Small business fundamentals

We are all constantly hearing from the Government that our economy remains strong and has solid fundamentals, as your small business accountants we know those of us at the coal face of small business know that the Government has an over-simplified view of our economy. Consumers are becoming increasingly budget conscious and business is required to work harder and harder for each sale in increasingly competitive markets. So we all know that the economy overall has strong fundamentals, does your small business?

By fundamentals I am referring to the strength of your customer base, capacity and ability of your workforce, (even if it's a force of one), and the ability of your business balance sheet to either sustain unexpected shocks or the ability to take advantage of opportunities as they arise. Too much debt, can leave you exposed to interest rate rises. Too much stock on the shelf leaves you open to poor liquidity (cash in the bank) as well as changing consumer trends. Is your equipment, or tools of trade, hampering your ability to land and execute business, or have you over capitalised based on your projected business activity?

These are questions that all small business owners must be asking themselves on a frequent basis. Just another reason to partner with a small business accountant who is able to give you a frank and honest judgement about your business, rather than just another tax preparer who can only tell you where you've already been.

 For any more information on this contact us, your small business accountants in Surry Hills.