This is similar to the gross profit margin, except it measures the extent to which the total sales figure is converted into profit after the normal costs of running the business have been met. It is normally presented as a percentage and represents the return the business is earning from normal operating activities. As with gross profit margin, there is no "normal" operating profit margin. The higher the percentage the better is the rule to go by.

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.

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.

Who here loves the VAT man?” That is a question that I ask on a regular basis. Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. Here are a few more instances and situations that many folk don’t know about, where you can claim VAT back if the product/service has been used for business purposes.

“Who here loves the VAT man?” That is a question that I ask on a regular basis. Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. That said, here are a few more tips in terms of what must be done regarding the VAT requirements.

“Who here loves the VAT man?” That is a question that I ask on a regular basis. Sadly though, more often than not, mine is the only hand that goes up. It is definitely a mind set that needs to be changed if we are to make the best use of the concessions that SARS gives us. It is about what you know and how you use it that will allow you to make the most of your relationship with SARS. That said, here are a few tips in terms of what must be done regarding the VAT requirements.

If you find yourself spending lots of time every month reconciling your bank statement and still aren't able to nail it down to the penny, our specially designed monthly bank reconciliation form contained in the attached file might be able to help you. It can help make the process far less painful and much more accurate, and will even do some of the clerical work for you. Just put in the account balance shown on your bank statement, your deposits in transit, your outstanding checks, and your account balance according to your books in the spaces provided.

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!

The Ombudsman for Banking Services (OBS), also referred to as “the OBS”, resolves individual complaints about banking services and products. We do this in an impartial, independent, confidential and speedy manner. Any bank customer who has a complaint against his or her bank may approach the Ombudsman for Banking Services for assistance. We resolve complaints by investigating matter according to the rules of the OBS. If the matter has not been resolved by negotiation after investigation, a firm decision may be taken. The decision may be in the form of a recommendation or a determination.

The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No. 34 of 2005 (The Act) and is responsible for the regulation of the South African credit industry. It is tasked with carrying out education, research, policy development, registration of industry participants, investigation of complaints, and ensuring the enforcement of the Act. The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

If you find yourself spending lots of time every month reconciling your bank statement and still aren't able to nail it down to the penny, our specially designed monthly bank reconciliation form contained in the attached file might be able to help you. It can help make the process far less painful and much more accurate, and will even do some of the clerical work for you. Just put in the account balance shown on your bank statement, your deposits in transit, your outstanding checks, and your account balance according to your books in the spaces provided.

For a growing business, having a manageable level of debt can be an effective way of doing business. While some small business owners are proud of the fact that they've never taken on debt, that's not always a realistic approach. The question for many small business owners is: How much debt is too much? The answer to this question will lie in a careful analysis of your cash flow and the specific needs of your business and your industry. This article will help you analyze whether taking on debt is a good idea for your company.

At one time or another, you may have to apply for a loan or overdraft to expand your business, buy equipment or finance some other aspect of your operations. This is when having a good credit history becomes very important. Establishing and maintaining a good credit record takes time and can be challenging during tough financial times. This is why you should not obtain credit for unnecessary expenses. This article looks at how to keep your credit record clean.

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.

Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period. The income statement is important because it shows the profitability of a company during the time interval specified in its heading. The period of time that the statement covers is chosen by the business and can vary. This template is intended to be a simple and practical tool to be adjusted and used by SMEs working in all sectors.

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.

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.

In the entrepreneurial world the relationship between the entrepreneur and their accountant is significant and intimate. Exposing our financial matters to someone else feels much like showing up to a meeting without our clothes on; and we have good reason to be selective about whom we choose to entrust with our innermost confidences. Accountants are an indispensable part of any business venture. Cultivating a pro-active profit type of accounting relationship provides meaningful and valuable support to all types of entrepreneurs.

Finding and choosing the right accountant for your business can mean the difference between success and failure. All accountants are not created equal. You need the right match for your exact needs. Unfortunately, once you've selected an accountant, it's often a hassle to switch due to the detailed knowledge that person gains of your business. Therefore it pays, when selecting an accountant, to 'get it right the first time'.