How Management Accounting Can Be Used to Help Your Business

How Management Accounting Can Be Used to Help Your Business

Management accounting is the technique of gathering and recording information which aids the decision-making capability of management. Indeed, management accounts can help management and business owners make better operating and strategic decisions. Furthermore, banks and other financial institutes sometimes require management accounts on a regular basis to assess their continuing lending terms and conditions.

A good management accounting process is one that helps to tackle four key aspects of a business:

PlanningDirectingDecision MakingControlling

The following are ways in which management accounting can help a business:

    It provides accurate information related to the budgeted and actual figures, thus enabling the managers and business owners to take proper cost controlling measures.Provides timely feedback related to current operational activities, therefore helping in reassessing the operational decisions and gaining better control over the activities of the business.Assists in measuring the performance of various departments and sub- units within an organisation. Read more

Common GST Pitfalls – Don’t Get Caught

Common GST Pitfalls - Don't Get Caught

Even though the GST has been in effect since 2000, there are many small business owners still making common errors. In the majority of cases, these mistakes have to do with people over-claiming their GST credits.

In order to avoid some of the more common GST pitfalls, you should keep it firmly in mind that the GST is a ‘transaction based’ tax, which means you should be trying to analyse every transaction to figure out the right GST action to take.

Below are some common GST pitfalls you should try to avoid.

Claiming GST without Valid Tax Invoices

If you’re registered for GST and hold a valid tax invoice, or recipient created tax invoice, you can claim a GST credit for purchases you made that cost you more than $82.50. Read more