Welcome to Heffernan Crawford Accountants 's new online accounting practice!
We’re thrilled to announce the launch of our new interactive ‘web practice’ at [web address], where we can now provide you with additional services.
Our aim is to make better use of your time and keep you up to date on matters affecting your business and family life.
For example, you can now keep abreast of all the important dates and deadlines on our Key Dates section, or check out the Tax Facts section for quick reference on tax requirements.
What's It Mean?
Accounting Period - Any period of time used to measure accounting performance e.g. 1 month, 3 months, 1 year
Capitalisation Rate - in valuing ongoing businesses that have been operating for some years, the future maintainable profit is expressed at a capitalisation rate.
The capitalisation rate is the rate of return that a prudent, arm-length investor would require from an investment in this type of business after the allowance of reasonable management salaries.
The capitalisation rate normally reflects a mark up on prevailing interest rates to reflect the risk of the business, lack of negotiability of shares, economic conditions, restrictions on entry into the business, size of the share parcel (of the company) and general business risks. e.g. if a business had an after tax profit of $110,000 (it was considered that reasonable management salaries had been paid) and the capitalisation rate that had been agreed upon was 20%, the business valuation would be:-
$110,000/20 x 100/1 = $550,000
For more information contact us for a copy of the paper “Accounting Terminology".
Article provided by Acclipse Business Advisor and ESS BIZTOOLS Pty Ltd.
In addition, our web practice offers you interactive services.
Perhaps you run out of time during normal business hours to call us for an appointment...why not schedule an appointment using our special online form? You can access this form any time of the day or night and with the easy to follow instructions, you’ll find it a quick and simple way to request an appointment time. Click here to book an appointment.
As we respond to feedback from you and our other clients, we will continue to add further information and interactive services to our website.
If you have any questions, comments, suggestions, please don’t hesitate to contact us at any time. We look forward to hearing from you.
Heffernan Crawford Accountants
PS. If there are other people you know who would like to subscribe to this newsletter, they can sign up by visiting our website [Link to Sign up].
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