Glossary
A
ABN - Australian Business Number
The ABN, which stands for Australian Business Number, is a one-of-a-kind identifier issued to every business entity operating within Australia.
Accounts Receivable
Accounts Receivable (AR) represents a vital part of a business's finances. It's essentially future cash that the business is entitled to receive. Proper management of AR is essential for maintaining a healthy cash flow and ensuring the financial stability of the company.
Accounts Payable
Accounts Payable (AP) refers to a company's short-term liabilities for goods and services purchased on credit. Efficient AP processes are crucial for smooth business operations.
B
BAS - Business Activity Statement
The BAS is a vital part of running a business in Australia. Understanding what it is, what it covers, and how to lodge it correctly will ensure you meet your tax obligations and avoid penalties. If you're unsure about any aspect of your BAS, seeking professional advice from a registered tax agent is highly recommended. They can help you navigate the complexities of tax and ensure you're compliant with all regulations.
Budget
A budget is simply a plan for how you will spend your money over a specific period, like a month or a year. Think of it as your financial roadmap, helping you reach your money goals.
C
CapEx To Revenue Ratio
The CapEx to Revenue Ratio shows how much a company invests in long-term assets (like buildings, equipment, and software) compared to its total sales revenue.
Cash Budget
A cash budget is like a financial roadmap for your business, showing you how much cash you expect to come in and go out over a specific period, typically a month, quarter, or year.
Consumption Tax
A tax levied on goods and services at the point of purchase or consumption. Unlike income taxes, which are based on earnings, consumption taxes are based on spending.
CapEx - Capital Expenditures
CapEx, short for Capital Expenditures, represents the money a business spends on acquiring or improving significant assets that will benefit the company for more than one year. Think of it as investments rather than everyday expenses.
D
E
Equity Ratio
A company's assets are everything it owns, including cash, buildings, equipment, and even things like patents.
F
G
GST - Goods and Services Tax
Australia, the Goods and Services Tax, commonly known as GST, is a 10% value-added tax enforced on the majority of goods and services transactions.
H
I
J
K
L
M
N
O
P
Q
R
Recipient Created Tax Invoice
Take control of your payments and use a recipient-created tax invoice to pay your supplier proactively, rather than waiting for them to issue an invoice.