Articles

How it’s calculated Net Profit can be calculated before owner’s salary (bos) is removed or after owner’s salary (aos) is removed. Net Profit (bos) calculated as: Total Income – Expenses (excluding Owner’s Wages and Superannuation)   Net Profit (aos) is calculated as: Total Income –...

How it’s calculated Net Profit per Owner can be calculated before owner’s salary (bos) is removed or after owner’s salary (aos) is removed.   Net Profit (bos) per Owner is calculated as: Net Profit (bos)  / Full Time Equivalent (FTE) Owners   Net Profit (aos)...

Tim explains the new and improved benchmark suite reporting feedback section for SMEs in Australia. [embed]https://www.youtube.com/watch?v=yGCvp8chNTc[/embed]

The Australian Tax Office (ATO) provides a high-level benchmark tool for business owners to compare their company’s performance to a wider range of similar businesses. There are essentially three purposes behind the ATO Small Business Benchmark Tool. These are: ...

Franchises are often considered, and sold as, a win-win business-model by both franchisors and franchisees. However, the recent Fairness in Franchising Report by the Federal Parliamentary Joint Committee on Corporations and Financial Services, released in March 2019, highlighted that...

How it’s calculated   Employee Wages as a percentage of Total Income is calculated as:   (Employee Wages & Salaries / Total Income) * 100   Note: Employee wages does not include superannuation, owner’s wages or owner’s superannuation.   How It’s Used When benchmarking expense items, such as...

As a business owner, competition can be intimidating.  However, it can also drive us to achieve impressive results. The important factor is knowing how to beat the competition. With this sentiment in mind, for business owners and advisors, gathering...

How it’s calculated   Revenue Per Employee is calculated as:   Revenue Per Employee = Total Revenue / Total Full Time Equivalent Employee   See here for explanation of Full Time Equivalent Benchmark Calculation   How it’s used Revenue per employee is an important financial benchmark because it...

What it is Full Time Equivalent (FTE) is NOT headcount. Some people in your business may have only worked for part of the year or are part time. In these cases, the full time equivalent is less than 1. Also see...