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The accounting trick you’ve probably overlooked

Posted on Feb 20, 2017 by admin

It’s surprisingly simple, yet accountants suggest not enough business owners do it – often causing undue stress and difficulties down the track for business owners.
What is this simple trick? The humble savings plan and a separate bank account, says Alexander Laureti, partner of accounting firm LMS Advisory.

“It’s … important to have some kind of disciplined saving plan for the business, so that if you make your money in six months of the year, you’ve got to put aside for those lean times as well,” he explains while speaking on the My Business Podcast.

“It’s always the temptation that, there’s money in the bank, let’s go ahead and spend it: let’s go ahead and draw it. Let’s reinvest on some essential business items. Let’s do some upgrades. Let’s change our equipment. There are many things that businesses can choose to do.”

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