Financial Services

Financial+Services

The Most Common Financial Mistakes You Could Be Doing

What are some of the most common financial mistakes your business could easily avoid?

Believing that every profit will result in cash-flow – once you accept a project, it is tempting to quickly write down the profits you will make from the completed project as cash-flows to your business. Since you will be estimating the potential cash-flow after detracting the potential costs that you will incur during the project, there is a very good probability that your estimate can be wrong. To begin with, it is an estimate – and secondly, in most cases, profits come after the project is successfully concluded. To assume the project can be finished without any unforeseen consequences is to overestimate the potential amount of cash that could flow into the business, and thereby create an inflated image of the business’s financial status.

Not taking bookkeeping seriously – bookkeeping can be a drag, and it is common for many businesses to have books that have not been updated in months. This, however, is a fatal mistake. Not only can it cause delays and problems during the tax filing season, but it can also prevent you from correctly assessing the status of the business. Nowadays, there are many software that can allow you to maintain your books quite easily: a good example is Xero; accountants will often be glad to advise you on how to use particular software such as this, if you do not know how to.

Not outsourcing your accounting – if you have an accountant in your business, it is normal to let them do all of the accounting work (but it is still a good idea to conduct an audit every once in a while to confirm that all is well). The problem is if you do not have an accountant and still attempt to do everything by yourself. Whilst you might be trying to cut down costs, what you are attempting to do can backfire: it can increase your expenses. This is because unlike an expert tax return Brisbane or the like, it is easier for you to make mistakes. Not to add, it is almost impossible to be aware of every change that is made every year to tax regulations – who knows what new tax deductibles are added (which you could benefit from)?

Not applying proper budgets to projects – when accepting potential projects, it is always important to correctly estimate and allocate a proper budget to each. If you fail to allocate a budget to every new project the business starts, you can easily find yourself in the red: a project without a budget can easily exceed the profits, and you have no way of knowing when a project is costing you too much to be profitable. Always specify clear and realistic budgets to every project you start.

Building An Apartment Complex As An Investment

 

An apartment complex business is a great business and the chances are that you will be able to earn a lot of money back from a business of this sort but getting the business of the ground can sometimes be a challenge if you do not have a proper plan and proper people by your side to help you. The truth is, building an apartment complex is similar to building a home but on a much bigger scale which means that it is many times the problems, many times the challenges and therefore, it is vital that you have a proper plan in place.

Get advice from professionals

The most important thing for you to do is that you do not attempt to do this alone as you might not have the knowledge required to make sure that the project is successful. You will need to first consult with a professional and recommended quantity surveyor who will be able to give you accurate details about the amount of things you will need to build your apartment and you will also need to have a professional structural engineer by your side throughout the building process to watch over the work of the builders. Keep in mind that there are many regulations and standards that you will have to stick to by law and these are all things that you structural engineer will know due to his education but you will not. Visit this link https://summitqs.com.au/ for more info on quantity surveyor Brisbane.

Many builders try to override these rules and laws by doing their own thing in order to make things easier for them and in order to make the most amount of money out of the project.In addition to all of this, you will need to get a tax depreciation schedule Sunshine Coast done in order to get accurate details on what to expect when building your apartment complex.Keep in mind that there are many apartments out there and therefore, you will need to make yours stand out and you will need to give your potential tenants a reason to choose you over the competition. Therefore, the best thing for you to do is to offer things that other apartment complexes do not such as having dog and pet friendly apartments available as well as very cheap and affordable small apartments for students and full time workers who simply need a place to sleep at night and nothing fancy. These can be small one room apartments with a bathroom and a tiny kitchen which will suit their needs perfectly.