"Pretium Solutions Pty Ltd" BiziNet Articles

Every business owner should know the difference between 'profit' and 'cash flow'. Surprisingly, many business owners do not understand the difference. I'm often asked "how is it possible to make a profit when there is no money in my bank account?" At first it might seem like profit and cash flow measure the same thing - the financial health of your business. After all, for both it's a case of the more you have, the better your business is doing. But profit and cash flow are two different beasts, and it's important to know how each one affects your business.

Every business owner wants to grow a profitable business that continues to grow and remain profitable in the long term. Rapid growth in both revenue and profits are seen by many to be the keys to achieving this.

To ensure you have a more profitable business you need to stop the focus from being on taxation. Taxation is mandatory. It is a requirement at the end of each year. Every business must submit an income tax return. Many business owners are focused on solving the problem of "how can I pay less tax", "how can I increase my deductions?" or, "is there a way I can reduce my income?"

Is your business leaving cash on the table? By not taking advantage of government grants and incentives which may be available to your business are you turning your back on financial assistance that Federal and State governments are offering?