If I were to hazard a guess, I would say a large percentage of small business owners in Australia run their business via what I call the ‘Bank Account Theory’.

Bank Account Theory

The Bank Account Theory goes something like this. “If I have money in the bank, I assume there is profit on the books. If there is no money, or small amount of money in the bank, then there must be a loss on the books”.

Yes, the bank account is undoubtedly important to small business! The cashflow you need to run the day-to-day operations of your business is absolutely vital when you have to rely on cash on a day-to-day basis.

But it is only one of a number of elements that drive your financial portfolio, and certainly cannot be the only one.

This is why your accountant isn’t interested in logging on to your Internet banking. Everything they need to know can be gathered from accurate bookkeeping – statement of revenue and expenses, as well as balance sheets, work hand-in-hand to paint an accurate, financial portrait of your business.

So, I hear you ask – why do I have profit on the books and no money in the bank?

We can explain. This is the vital information that you need to know in order to ensure your long-term business and financial success.

For a simple outline, download our FREE eBook – Make a difference to your bottom line. You will not only find an explanation as to how the Bank Account Theory can be hindering your business, but will also learn five reasons why there is no money in the bank (despite your business making a profit), and the seven key numbers that drive profit and cashflow.

It’s free for a limited time – so take advantage now and get a step ahead of your competition!