Author: Brendan

Home for the Elderly graphic art

It is important to know what to do and what your options are for your loved ones as they get older, however, this can often be confusing for many people.

Because of this, it is important to get all the right options and understand what they mean in order to make the best choices for your loved ones and for their future, security, and happiness, as well as your own.

The decisions that come with this certain process are often the most confusing aspects of the whole process. For this reason, it is important to have someone knowledgeable to help give aged care financial advice in order for you to understand what is going on and what the options are for your loved ones. Having this clarity surrounding these options will help you to make the best-informed decision for your loved ones and the right one for their future.

Therefore, it is very important to have good aged care financial advice when making decisions.

 

What can an adviser do for you?

old woman talking to someone over the phone

An adviser is able to help give you aged care financial advice as they have studied and trained in order to help guide you through the process. They can thereby help you to make decisions for not only your own loved ones and also for your estate. A good adviser will be able to provide you with a number of services and forms of aged care financial advice in order to inform you as much as possible. This will help you to make an informed decision. They should be able to help you to identify and make a comparison between the different costs that will apply to you. This is done by looking into and taking into consideration your current position in terms of money. To add to this, if you are having difficulty they can provide aged care financial advice as to whether or not you should sell the family home or other assets to afford and fund it. Furthermore, the adviser will help you to organise and undertake strategies in order to maximise government benefits that can help to fund the process, including the Home Packages and the Age Pension.

Finally, the adviser should be able to talk you through estate planning and some of the possible complexities and challenges involved in this, in order for you to be able to make informed decisions based on this.

These forms of aged care financial advice are absolutely essential for anyone who has to make decisions for loved ones who can no longer look after themselves independently. The process afterward is often expensive in order to look after someone for years and therefore aged care financial advice is needed to find options to fund this, and to also be fully informed on what all the options are and what they may mean for your loved ones who will be affected by the decisions. These reasons are why aged care financial advice is so important.

 

There are also other options available such as counsellors who can help you through money difficulties in relation to the process. They are also able to give aged care financial advice and help to negotiate with creditors in terms of finances, debts, and creating and managing budgets. These counsellors are found in community organisations that are funded to provide these specific services.

 

 

In summary, aged care financial advice is very important in order to inform you of the options available to you and your loved ones before you can make a decision that will affect yours and their future, security and happiness.

Aged care financial advice should be taken seriously to help and keep your loved ones secure.…

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Turnover is not yet profit and gross amounts are not the same as net revenues. But don’t worry! Read here how to make the correct calculations for your administration.

How do I calculate my turnover?

The moment you book your very first turnover is of course fantastic. Finally, your hard work is paying off. Your turnover over a certain period is the sum of everything you have brought in in revenues.

VAT is not included here, because you calculate VAT on turnover. After all, it’s the sales tax. There are three different rates

  • The standard rate: 21%
  • The reduced rate: 9%
  • The exempt rate: 0%

How do I calculate my profit?

Turnover is not the same as profit. After all, you still incurred costs. To calculate the profit over a period of time, you have to subtract the cost from the turnover. Then you are left with what you have to spend at the bottom of the line.

Gross profit, operating profit and net profit

There is a difference between gross profit, your operating result from ordinary business operations and the net profit.

  1. The gross profit only takes into account the direct costs you incur for an assignment.
  2. The operating result from your normal business operations also takes indirect costs into account. These are costs that are not related to your production process, they are often referred to as overhead.
  3. The net profit also takes into account taxes, interest and dividend for preference shares.

In short, the net profit is what you are left at the very bottom of the line.

  • Also read:  My first time: VAT return and income tax

Calculation example: calculate turnover to profit

The calculation of turnover to profit seems simple, but sometimes goes wrong. This fictitious calculation example shows how to calculate the profit.

Laura is a construction entrepreneur, her business covers thatched roofs and she employs three people. Covering one roof takes about a month. She rents an office with a space for storage.

 

  • Laura has spent approximately € 35,000 on materials, tools and personnel costs (direct costs).
  • Laura charges the customer a price of € 50,000 including VAT
  • The turnover is the price that the customer pays, excluding VAT (21%).

Turnover = € 50,000 / 121 * 100 = € 41,322

  • The gross profit is the turnover minus the direct costs incurred by Laura for this job.

Gross profit = € 41,322 – € 35,000 = € 6,322

  • The operating result from ordinary business operations is the gross profit minus the indirect costs (rent of the building, administration costs, depreciation, etc.).

Operating result from ordinary operations = € 6,322 – € 1,200 = € 5,122

  • Net profit is the operating result from ordinary activities less taxes, interest and dividend for preference shares.

Net profit = € 5,122 – € 500 = € 4,622.

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To manage a sufficiently profitable and performing commercial activity in a competitive company like the one we are all part of, it is advisable to periodically carry out those analyzes of company costs which, in addition to giving a clear overview of the current economic situation, also help to identify the source of any waste allowing it to be reduced as quickly as possible.

For this cost control to guarantee good results in the short and long term, however, it is necessary to take into consideration a series of specific directives which we will immediately discuss below: important operations to be carried out carefully to have full control over the progress financial position of your company.

Identify all expenses

A good analysis of the company costs primarily involves the precise identification of all the expenses incurred during a certain period (one year, two years, five years, etc.).

To obtain a correct estimate it is important to divide the management costs of the company that do not produce real profits (production, purchase, financing, sales, marketing, research, development, etc.), the fixed costs (personnel, raw materials, IT equipment, etc.) and the costs on which it is possible to save (supply contracts, rents, etc.).

Set specific goals

After the assessment and control of the costs described in the previous point, it is then necessary to understand how much and where you can save, considering the different company departments and proceeding for specific objectives: if, for example, you realize that the Being operational in a certain region is the cause of excessive economic expenditure, resources must be directed to the most profitable areas, concentrating them in such a way as to reduce waste and increase profits.

Contact employees and collaborators

To ensure that the analysis of company costs is as truthful and reliable as possible, it is also necessary to ask for an opinion from those employees and collaborators engaged every day in the business activities. Since all the pawns available live in direct contact with the reality of the company in which they work, they can certainly make an important contribution to eliminate any loss of time and/or money.

Identify savings possibilities

When the main purpose is to limit exits, a valid solution to put into practice is to identify all the costs on which it is possible to save: regardless of whether it is wrong expenses, missing discounts or other wastes, it is necessary to find alternatives to reduce the economic effort.

Get software to record and analyze costs

Whoever the person appointed to control the costs, the first thing he will need will be the objective data: that is, the list of all the costs incurred and perhaps supported by a supporting piece (receipts, invoices, etc.).

A spreadsheet can be useful if the check is done one time, and the complexity of the activity is modest. In most cases, on the other hand, continuous cost control is necessary, and therefore it is advisable to rely on management software with a first note in which to record and categorize movements as needed.

Hire a consultant

In order to carry out a precise and scrupulous cost control, at times, it may become necessary to hire a consultant specialized in the matter which, in addition to making available to the company its baggage of knowledge, provides an objective point of view and free from corporate interests.

If the selection of this figure is to be made considering his past experiences (where and for whom he has worked in the past) and the methods of collaboration will be made official, clearly accompanied by a confidentiality agreement.

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