Ashton Accountants

26/05/2026

Business Analysis Series
Most businesses think discounting destroys profit.
But sometimes…
NOT discounting costs more.
Example.
A business buys:
• 1,000 units
• Cost = $20 each
• Total stock investment = $20,000
The stock sits for 60 days waiting for sale.
During that time:
• interest/funding costs apply
• storage costs apply
• labour costs continue
• freight and handling costs continue
• cash flow remains tied up
At 14% funding costs alone:
the interest bill can approach $500 over that period.
Add storage and handling…
and the holding cost may approach 10%.
Suddenly:
a controlled 5–10% discount to move inventory quickly may actually improve:
• cash flow
• stock turn
• working capital
• overall profitability
This is where many businesses get caught.
They analyse margin…
but fail to analyse the FULL economic cost of holding inventory.
Modern business is no longer simple “cost plus markup.”
Today businesses must also consider:
• funding costs
• inventory velocity
• freight
• warehousing
• labour
• payment timing
• cash conversion
Because sometimes the real question is not:
“What margin am I giving up?”
It is:
“What is it costing me NOT to sell?”
The businesses that survive long term are usually the ones that analyse faster and adapt faster.

04/05/2026

Post 2
When Your Business Grows, Your Structure Should Too
Many contractors begin as sole traders.
It’s simple, fast and inexpensive to set up.
But once income begins moving toward $120k–$150k, it can be worth thinking about whether a company structure is more appropriate.
A company can introduce discipline:
• paying yourself a salary
• contributing regularly to superannuation
• managing PAYG instalments in a predictable way.
These small changes do two important things.
They stabilise cash flow.
And they create the financial track record lenders look for when assessing mortgages.
Contrary to popular belief, banks are very familiar with contractors operating through companies.
Producing full documentation for a standard mortgage is often easier than many people expect.
Structure doesn’t eliminate risk.
But it helps

22/03/2026

THE STRUCTURE SERIES No 1
When Business Income Is Volatile, Your Structure Shouldn’t Be
Common Problem
Many Australians choose to work for themselves.
Contractors, tradespeople and consultants often earn strong incomes, but the reality is that the income can be uneven.
Projects start and stop.
Payments can stretch from 7 days to 30 or even 60 days.
Costs can rise unexpectedly.
When global events affect fuel, materials or construction costs, small business owners and contractors often feel the pressure first.
The issue is not usually effort or skill.
It is income volatility.
________________________________________
Structure Worth Discussing
One approach worth discussing with professional advisers is separating the different parts of your financial life.
For example:
• Business Structure – operating through a company to manage commercial activity and risk.
• Long-Term Savings Structure – making regular superannuation contributions to build retirement capital over time.
• Personal Asset Protection – ensuring that personal assets such as the family home are kept separate from trading activities wherever possible.
The principle is simple.
Separate business risk from long-term assets.
________________________________________
Speak To Your Adviser
Every situation is different.
If you are running your own business, it may be worth discussing appropriate structures with your accountant, financial planner or legal adviser.
Good structure can make a significant difference over time.

Closing Thought
Hard work builds assets.
Structure helps protect them — especially the home.

10/12/2025

From 1 July 2026, Payday Super comes into full effect for Australian employers.
Payday Super is not just another compliance rule.
It forces businesses to fund employee super every pay cycle, not quarterly.

For many SMEs, this will expose:

weak cashflow habits

poor forecasting

missed super accruals

and silent liabilities that used to hide until quarter end

The real risk is not penalties - it’s insolvency.

When a business has to fund super every week, forecasting becomes essential. Those who avoid it will fold fast.

Action:
Start including super in your payroll budgeting now. If it’s not forecasted, it will be forced.

18/03/2025

changes on the horizon.
new changes for small businesses
read more here

09/02/2025

Budgeting Tips for Aussie Startups

18/03/2022