Unit 11, 61 Flynn St, Wembley, WA, 6014
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Advice from Outside the Square

Monthly Archives: January 2018

8 Financial Ratios To Measure Your Business Performance

  As a small business owner, you work hard to make your business a success. You record your financial transactions, and whether you use your own software, or you ask your accountant to prepare them, from time to time you print a financial report and look at your business' financial performance. However, those reports, commonly your Profit & Loss and your Balance Sheet, can only tell you so much about your business. They will give you clear information about the dollars at play, but how is your business performing really, from year to year? That's why it is important to review financial ratios from time to time. Financial ratios are the relationships between key numbers in your accounts. Some financial ratios tell you about the profitability of your business. Others inform you about your liquidity, and yet others will tell you about the efficiency of your financial assets. An example of a financial ratio providing information about your profitability is your Return on Equity, or the rate of return on the investment you have made in your business. If your Return on Equity is 6% and bank interest on an equivalent investment with no risk is 2% you need to ask yourself if the extra 4...
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Does Your Board Handle Change Well?

Change is an inevitable part of life, and of the life of an Indigenous organisation. I ask those readers who have been through the journey of Indigenous organisations through the 80's to now to consider how the environment and climate around Indigenous organisations have changed. The change from grant-funded operations to Native Title negotiations; the change of Governments, government agencies and legislation affecting Aboriginal people; and the change from the Aboriginal Councils and Associations Act 1976 to the Corporations (Aboriginal and Torres Strait Islander) Act 2006, and how that has "professionalised" the Indigenous Board from the old "Council" or "Committee". Change is the future - how future proof is your Board? (more…)...
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