To understand the financial position of a business at a specific point of time, look at the balance sheet.

The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance.

So what’s involved? – The balance sheet has three sections: assets, liabilities and equity.

What are Assets?

Assets are things and resources that a company owns. They have current and/or future value and can be measured in currency.

Assets may be subdivided on the balance sheet into bank accounts, current assets, (receivable within one year), fixed assets, inventory, non-current (or long term) assets, intangible assets and prepayments.

These include banks and other financial accounts held, accounts receivable (trade debtors), supplier deposits or bonds, stock on hand, property, equipment, vehicles, investments and intellectual property. All of these can be translated into monetary value.

What are Liabilities?

Liabilities are amounts owed to suppliers and other creditors for goods or services already received. Liabilities may also include amounts received in advance for future services yet to be provided by the business.

Liabilities are generally subdivided into current, (payable within one year), and non-current liabilities.

These include accounts payable (trade creditors), payroll obligations (salaries, taxes, superannuation), interest, customer deposits received, warranties and loans.

What is Equity?

Equity includes owner funds contributed, drawings, retained earnings and stocks. The value of the equity equals assets minus liabilities.

Transactions that affect profit and loss accounts also affect balance sheet accounts. For example, providing a service increases the accounts receivable balance, which therefore increases the equity.

The Balance Sheet Equation

The balance sheet must always balance! Asset value = liabilities + equity.

For example, if you buy a new vehicle for the business at say 50,000, having paid a 10,000 deposit and taking out a 40,000 loan, the value of fixed assets increases by 50k, but the bank asset value decreases by the 10k deposit paid. The value of liabilities increases by 40k loan, thus leaving the balance sheet balanced on both sides of the equation.

The balance sheet equation shows you how much money you would have left over if you paid all your bills and debts and sold all your assets at a given date. This amount is the Owner’s Equity.

Note that the balance sheet equity total is not necessarily how much the business is worth at market value. Assets are listed on the balance sheet at their transaction value, which may be very different from the market value. Some assets may be worth more, and others may depreciate in value. Business value is calculated not just on the balance sheet figures but many other factors.

Need more information?

Talk to us. Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Knowing what’s around the corner is hugely valuable as a business leader.

But we’re trading in a world where uncertainty waits around every corner – making it difficult to predict the future business landscape and what your next move should be.

You can’t change the evolving economic, political and business threats in the world. But in this series we’ll show you some key way to thrive and reduce the uncertainty.

Dialing down the uncertainty, to gain a competitive edge

Uncertainty affects your ability to trade. Not knowing if your costs will rise or fall, or if there’s a talent shortage or surplus, makes it difficult to make rock-solid decisions and plans.

Your goal in the current environment is not to remove these external threats. It’s to reduce some of the uncertainty through clear planning and inventive strategic thinking.

Let’s look at 5 key areas, and how they can dial down the uncertainty.

1. Financial forecasting and planning:

Carrying out regular cashflow forecasting and budgeting helps you anticipate any potential financial challenges. Good cashflow forecasting, coupled with scenario planning, helps you make informed decisions about your spending and where you may need additional funding.

2. Performance monitoring and analysis:

Tracking important metrics and having a key performance indicator (KPI) dashboard helps you review your performance against targets and look for the areas of improvement. Monitoring those KPIs keeps you in control, even if external factors and threats are proving to be difficult.

3. Strategic business reviews:

When was the last time you revisited your business plan? Updating your strategy and business plan helps you stay aligned with your goals, even if external factors and changing market conditions are making trading difficult. Remember, no business plan is written in stone!

4. Getting proactive with tax updates:

As the business landscape changes, the government is likely to look for ways to inspire enterprise and boost the economy. Being aware of legislative changes, tax reliefs and allowances, and available government grants, helps you navigate the uncertainty. You can keep compliant, maximise any benefits and see the positive impact on your capital position.

5. Business Diversification & Growth Strategies:

Being able to flex and change your strategic direction gives you a huge competitive edge. Brainstorm ideas for ways you could diversify your offering and explore new opportunities. This could mean new products, new revenue streams and even partnering with other small businesses – both inside and outside your existing sector.

Making the path ahead clearer and easier to navigate

There’s no denying that we’re trading in difficult times. But getting proactive with your planning, forecasting and strategic thinking makes the road ahead clearer.

Come and talk to us about the key areas of uncertainty in your business – and find out how we can guide you through these uncertain times and out the other side.

The following content was originally published by BOMA. We have updated some of this article for our readers.

4 key tips for delivering the income that fuels your chosen lifestyle.

Making your business a success story may be what drives you to get out of bed every morning. But your business also needs to deliver on your personal goals as well.

Profits, dividends and bonuses need to be stable enough to help you maintain your desired lifestyle, whether that’s two holidays a year, or paying the mortgage on a new family home.

In this series, we’ll look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals.

Delivering the income that fuels your chosen lifestyle

When you start a business, you make some fairly major decisions about your quality of life. Building a start-up could mean several months, or even years, of reduced income. But, ultimately, you’ll want an income from the business that helps you fund your chosen lifestyle.

Here are four key ways to make sure your business can secure your lifestyle:

1.  Focus on high margins or high volume

Prioritise products/services that offer either high margins or high volumes of sales. Your key focus is to help the business provide stable, predictable revenue and profits. This will help you draw down the necessary income for your desired lifestyle.

2.  Get strategic with your pricing

Adjust your pricing so you’re competitive but making some healthy margins. Value-based pricing and bundling helps to increase the value from each transaction. The more you do to boost the price of an average sale, the easier it will be to supply the income needed for your lifestyle.

3.  Hang on to valued customers

You can quickly improve your customer loyalty stats by offering personalised services and programs. Retaining your existing customers is cheaper than acquiring new ones, so keep these customers sweet and enjoy consistent revenues that power your personal income.

4.  Automate your most costly processes

Labour costs can quickly eat into your profits. Think about automating basic tasks and outsourcing non-core functions, so you’ve got more time for high-value revenue generation. Reducing your overheads can directly influence your own potential income as a director.

Creating a profitable, cash-rich enterprise is the dream. And if you can stabilise your sales, revenue and profitability, you increase your chances of a healthy income from the business.

Come and have a chat about working smarter, not harder.

The following content was originally published by BOMA. We have updated some of this article for our readers.

As your accountant, we won’t just look after the financial side of your business, we can also advise you on the strategic side of your company, including the importance of business development as vital part of your growth plan.

Business development (BD) is what helps your company move from slow, organic growth to fast-paced, hypergrowth. And it’s only by putting the right drive and expertise behind your BD that you can turn your strategic ideas into real success stories.

Here are 5 ways we can help you achieve this:

1.  Talk to you about your strategic goals

The starting point for any kind of BD activity is to pin down your goals and aims as a business. When you know what you want to achieve over the coming months, it’s far easier to define a strategy for success. And that’s easier to do when you talk to an objective adviser, like us.

We can sit in on your board meetings, talk to your executive team and get a real handle on what makes the business tick. And, armed with this knowledge, we’ll work with you to drive the direction of your BD and find the best opportunities for you to focus on.

2.  Help you create a clear BD strategy and plan

Having a defined set of BD goals is a good starting point. But to put this all into action in a productive way, you’re going to need a comprehensive plan for your BD projects.

Our years of experience advising business leaders and their teams really comes into play here. We know the best routes to take, the budgets that will be needed and the right tactics for bringing in more contracts, sales and partnerships. By putting these strategies into a clear plan, and linking this to agreed timescales, you have a BD route map to follow and action.

3.  Introduce you to a broader network of business partners

We work with a wide range of businesses across many different sectors, industries and niches. By introducing you to our network of clients, we welcome you into a supportive community of like-minded business owners. And that’s excellent news when looking for new partnerships.

Whether it’s attending a local conference, an online webinar or one of our in-house client events, you’re going to meet new people, share new ideas and make the right connections. This is a great way to build alliances and work together with other local businesses. And when you’re well-connected, you set the very best foundations for your future BD activity.

4.  Provide better routes to funding and investment

Whatever goals you’ve set for your BD projects, it’s likely that you’re going to need additional funding to finance this activity. Investing in your expansion, or new partnerships, is vital to getting a good return on your BD, so great access to finance is a definite bonus.

We’ll advise you on the most appropriate funding channels and how you can use these facilities to finance your BD plans. And we can also link you up with banks, lenders and business finance specialists – so you get the advice and finance you need to bring your BD to life.

5.  Help you track and measure your BD performance

Meeting your BD targets takes time – and a whole lot of dedication. Measuring your BD performance over time, helps you stay on track and gives you a good indication of how well you’re tracking against your planned progress.

We’ll help you create the reporting and metrics you need, so you have clear data to track your progress over time. You can log your activity in your project management system, or your client relationship management (CRM) software, and keep clear notes on contacts made, relationships built and targets converted etc.

If you want to get more from your BD, please do get in touch. We’ll partner with you to put some real drive, experience and impetus behind your BD strategies.

The following content was originally published by BOMA. We have updated some of this article for our readers.

If you’ve ever found yourself tangled in a web of cloud software issues, you’re not alone.

Many SMBs dive into new tools hoping for miracles, only to find themselves stuck in a cycle of frustration and confusion. But what if the solution lies not in throwing money at more software but in asking the right questions? Enter the SPIN Selling framework—Neil Rackham’s 1988 method for uncovering customer needs—and let’s give it a cloud-software twist.

SPIN stands for Situation, Problem, Implication, and Need-Payoff, and it’s a roadmap for cutting through the noise to find real solutions. Let’s see how this approach can help you tackle cloud software issues head-on.

Step 1: Situation—Getting the Lay of the Land

Before you solve a problem, you need to understand your starting point. This means asking questions to uncover the current state of your software setup. Examples:

• • “What tools are we using for project management, invoicing, and reporting?”
  • “How many systems are currently integrated, and how well do they work together?”
  • “What’s our monthly spend on software?”

These questions help clarify whether your tech stack is overcomplicated, underused, or a patchwork of half-working solutions. The goal is to map out your situation clearly before diving into fixes.

Step 2: Problem—Identifying the Pain Points

Once you know the situation, it’s time to dig into what’s not working. Problem questions focus on the frustrations, inefficiencies, and bottlenecks holding you back. Examples:

• • “Are we duplicating work across multiple platforms?”
  • “Is our team consistently using the tools we’ve invested in?”
  • “Do we have accurate, real-time reporting when we need it?”

This stage is all about surfacing the issues that are draining time, money, and morale. Don’t shy away from specifics—honest answers here lead to better fixes later.

Step 3: Implication—Exploring the Ripple Effect

Here’s where things get serious. Implication questions go deeper, uncovering the real impact of these problems on your business. This step often highlights the hidden costs of “making do” with a subpar system. Examples:

• • “How much time are we wasting on manual processes each week?”
  • “Are delays in data reporting affecting decision-making or client satisfaction?”
  • “What’s the risk if we continue using outdated or poorly integrated software?”

By connecting day-to-day frustrations with long-term consequences, you create urgency around finding a solution. After all, who wants to waste resources or risk their reputation over bad software?

Step 4: Need-Payoff—Highlighting the Benefits of Change

Now for the good news: there’s a light at the end of the tunnel! Need-payoff questions focus on the positive outcomes you’ll see once the right solution is in place. This is where you shift the conversation from problems to possibilities. Examples:

• • “How much time could we save with an automated workflow?”
  • “What would seamless integration mean for team productivity?”
  • “How would accurate forecasting help us hit our growth targets?”

Framing the conversation this way makes the benefits of change feel tangible and worth the effort.

Bringing It All Together

Here’s how a SPIN-based conversation might look in action:

1. Situation: “We’re using five different tools, and none of them talk to each other.”
2. Problem: “It’s a nightmare pulling reports, and we’re spending hours reconciling data manually.”
3. Implication: “This is delaying projects, causing errors, and frustrating our clients.”
4. Need-Payoff: “With an integrated system, we’d cut admin time in half, boost accuracy, and focus on growth.”

Why SPIN Works for Cloud Software

Cloud software isn’t one-size-fits-all, and adopting new tools without asking the right questions is a recipe for disappointment. By applying the SPIN Cycle, you can move past surface-level issues to uncover the real needs of your business—and find solutions that work.

So, the next time your tech stack feels like it’s spinning out of control, try this SPIN instead. You’ll go from problem-laden to payoff-ready in no time.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Software isn’t just about installing a shiny new system and hoping for the best — it’s about fixing broken processes and making businesses work better. And guess what? Accountants need to be part of that conversation.

When accountants, clients, and software implementers work together, great things happen. But when one of them ghosts the process, things go south—fast. Let’s talk about why this trio needs to work as a team, what happens when they don’t, and how to avoid a software disaster.

The Accountant-Client-Software Implementer Triangle

Think of software implementation like a three-legged stool. You’ve got:

✔ Accountants – Keeping the numbers clean, making sure the software plays nice with tax and reporting, advising on business growth and goals.

✔ Clients – The ones who actually use the software (or, at least, should be).

✔ Software Implementers – The guides who set everything up, train the team, and make sure it all works.

Now, if one leg is missing? The whole thing falls over. When this triangle works well, business processes improve, reporting gets easier, and advisory services become way more effective. But when someone disappears or plays the blame game, chaos follows.

When It Goes Wrong: The Client That Went Missing

Here’s a cautionary tale: The Case of the Vanishing Client.

It started off well—their accountant reached out to the implementer first, knowing the client needed a serious software upgrade. Good start, right? Except… the client was nowhere to be found. They were drowning in work, siloed in their leadership team, and simply had zero time (or interest) in learning new processes.

Instead of engaging in the project, they just threw their accountant in as a middleman—but without any real decision-making power. So what happened?

🚩 The accountant spent the whole time chasing the client for approvals.

🚩 The client didn’t understand the system (because they weren’t involved).

🚩 The new processes never properly took hold.

Long story short: the project failed. Not because the software wasn’t good, but because the client wouldn’t or couldn’t engage.

When It Goes Right: A Dream Team Collaboration

Now, let’s look at a software success story—because yes, they do exist!

This time, the client reached out first but immediately looped in their accountant from day one. They sat down together to talk through their pain points, particularly around multi-currency orders (a classic headache). The accountant flagged financial reporting concerns, the client explained their operational struggles, and they worked together with the implementer to find a solution that actually worked for both of them.

💡 The result?

✔ A software process that made the client’s life easier.

✔ Financial reporting that kept the accountant happy.

✔ An implementation where no one was overburdened.

This client? They’re using their system properly, their accountant stays in the loop, and everyone is still speaking to each other—a win all around!

How to Make Software Implementations Work

🚀 Accountants: Need to stay involved. If they’re left out, clients can end up with systems they don’t understand or doesn’t meet their financial goals.

🚀 Clients: Don’t check out. If you’re too busy to engage, your new system won’t fix anything—it’ll just create new problems.

🚀 Implementers: Should lead the process. If they don’t get clear direction from both the accountant and the client, the end result will be a mess.

🚀 Hit a roadblock? Reset. If the project is veering off track, take a step back. Reset boundaries, expectations, and even the Go Live date if needed. A delay is better than a disaster.

Final Thoughts: We’re All Human

Look, software projects are messy. People get busy. Miscommunication happens. But if everyone shows up, stays engaged, and actually listens to each other, the outcome is so much better.

A successful implementation isn’t just about tech—it’s about people, processes, and making sure the right voices are at the table. When accountants, clients, and implementers work together, businesses thrive.

The following content was originally published by BOMA. We have updated some of this article for our readers.