Key Ratios Every Business Should Know
It is said that you could only manage what you measure…the only way to manage your business finances is through some key ratios… There are some key ratios every business should know to understand the viability and health of your business. Managing your business finances and revenues can be a full-time job, and you might even […]
FINANCIAL STATEMENTS RED FLAGS
INCOME STATEMENT BALANCE SHEET CASH FLOW STATEMENT Gross Margin <10% Goodwill in Assets >30% Stock-based Compensation >20% of Net income Revenue Growth Rate <2% Debt to equity Ratio >4 Capital Expenditure >40% of Net income Net Profit Lower than Cash from Operations Receivables Rising faster than Sales Low or negative cash flow from Operating […]
Important Questions About Your Business That Your Accountant Should Answer
When should we be communicating with our accountant? You should be establishing expectations and deadlines with your accountant. Frequent communication is the key to a healthy and beneficial relationship with your accountant. To establish early if you will meet monthly or bi-monthly. How can you assist me in preparing my tax submission? You should know […]
Important Accounting ratios for small businesses
Understanding financial ratios for your small business is a key ingredient in the recipe of your company’s success. Among other things, ratios can be used to interpret numbers into useful information that can be used to improve your decision making process. Financial ratios help make sense of your accounting information. Ratios also show you what aspects […]
Accounting Mistakes That Will Harm Your Business
Small businesses frequently tend to handle their own accounting to commence with. This can be to save a few bucks or because the volume business activity is small. Accounting is much more than a merely calculator work, and when an error arises, it can cost the business significantly. Making a mess of the numbers can […]
FBR ANNOUNCES WITHHOLDING TAX RATES ON IMPORTS FOR 2025-26
The Federal Board of Revenue (FBR) has officially released the updated withholding tax rates applicable on imports for the tax year 2025-26. These rates have been notified under Section 148 of the Income Tax Ordinance, 2001 (as amended), and provide a comprehensive framework for determining the tax liability on goods brought into Pakistan. The new […]
Comparison Filer vs. Non-Filer Tax Rates (2025-26)
Transactions Filer Non-Filer 1. Cash Withdrawal – Bank exceeding Rs. 50,000 (u/s 231-AB) 0% 0.8% 2. Tax on Saving Account Profit (u/s 150) 20% 40% 3. International transaction via Debit/ Credit Card (u/s 236 Y) 5% 10% 4. Prize Bond (u/s 156) 15% 30% 5. Lottery and Winnings (u/s 156) 20% 40% 6. Tax […]
FBR ISSUES TAX RATE ON DEEMED PROPERTY INCOME FOR 2025-26
The Federal Board of Revenue (FBR) has officially released the tax rate applicable to deemed property income for the tax year 2025–26, continuing the government’s policy of discouraging the use of idle assets and broadening the tax base. Under the recently updated Income Tax Ordinance, 2001, deemed property income is taxed at a flat rate […]
Vital signals that you need an accountant for your small business
There’s so much to think about, for an owner while running a small business (up to PKR 250M, up to 50M equity) which he can’t do alone forever. For one thing, handling the financial side of the business is a full-time job in itself and one really can’t afford to take his foot off of […]
The key to small business success
Top 5 pieces of advice an accounting expert can provide There’s never enough time! Ever feel like you’re drowning in a sea of deadlines? Starting a small business is exciting, but the to-do list is endless and the day to day challenges can be nerve wracking! It’s typical to wish there were more hours in […]
