What is a financial statement?
A financial statement is a report that shows how your business is performing & its overall health. There are four main types of financial statements commonly used in Australia. Read the article to learn more about each type.
What is accounts receivable?
Put simply, accounts receivable is the money you’re owed by your customers. As soon as you send out an invoice, the money your customer owes you goes into accounts receivables. Read the article for details of accounts receivable duties, how to report on it and how it impacts running your business.
Understanding the tax tables
Tax tables will help determine exactly how much pay your employees receive as well as how much to withhold in tax etc. Whether you pay your employees employees weekly, fortnightly or monthly, the tax tables will help you determine how much to pay them. Read the article for more information on tax tables.
What is depreciation?
Depreciation is what happens when a business asset declines in value over time. You’ll probably have a good idea about depreciating assets, but when it comes to specifics around depreciation accounting and understanding what is depreciation schedules, it becomes a bit more complex. Read the article to break it down.
Sole trader tax
Working for yourself is a source of incredible self-satisfaction, but it also comes with more responsibilities – including the management of your own tax compliance. To help you stay compliant we’ve investigated sole trader tax rates, how to calculate tax and when to submit tax returns in the below article.
How to calculate FBT?
Understand how to calculate FBT (or the fringe benefits tax) is an important tax and compliance consideration for all employers who provide fringe benefits to their employees. Learn how fringe benefit tax works and how to calculate it in the article.
Financial information FAQs
Why is financial information important?
Your company’s financial information is very important because it is often used to evaluate a company’s financial performance. Some aspects of financial reporting are even required by law. For example:
- Creditors such as banks will require your financial information to assess your eligibility for a loan
- Investors need your financial information to assess whether they want to invest in your company
- Managers & owners of the business use financial information as a way to measure past and forecast future performance.
What are some sources of financial information?
Financial information can come from many sources such as a companies credit card statement or bank account. However this will never give enough information to make the judgment on overall performance. To do this effectively, you ideally need the balance sheet, income statement and a cash flow statement. Each of these statements gives a different insight useful for the overall assessment of how a business is performing.
Types of financial information?
There are four main financial information statements. They are:
- Balance sheets
- Income statements
- Cash flow statement
- Statements of shareholders’ equity.
Financial information can also be more broad and include any relevant information in relation to money such as credit card statements or bank transactions.
What is non financial information?
Non financial performance are simply measures of success in a business that are not expressed as a monetary value. Non financial reporting might include things like environmental impact, diversity in the workplace and social responsibility. These kinds of measure are increasingly important for determining the overall success of a company.