It’s best to start the new financial year in a healthy way so you stay ahead and on top of your finances. Here are five quick tips to give you a hand!
Create a budget you can stick to
A budget can be a fantastic way to align and manage your accounts and business planning if it’s set up in the right way. Budgets assist in tracking cash, expenses and future revenue needs for business growth – and a good budget takes into account future business requirements and can see potential issues before they arise. A budget should be realistic and have specific targets or KPI’s included. This allows you to measure your success, and if you don’t meet the targets you can assess why and make the necessary improvements to benefit your business.
Manage your cash flow
Make sure you set aside money to cover the three payments business owners need to make each quarter – GST, PAYG and staff superannuation. Whether this involves opening a separate bank account where you can automatically transfer money to cover this amount when the time comes, find a method that works for you.
Try cloud accounting and automation
If you are not already using cloud accounting, this could be a solution that makes the required processes easier, and less time-consuming, for you. With most cloud accounting software you have access to your businesses financial data at any time of day online, and in some cases you can automate manual activities to increase efficiency. Do some research on what cloud accounting software will work best for you.
Organise personal vs business debt
At some point in time you may need to borrow money for your business, whether it’s a short-term loan to fund a temporary cash flow shortage, or a long-term loan to purchase a business premises. However, always ensure that with any debt, you should always pay off personal (non-deductible) debt before business debt. It can be worth your while using professional accounting services when it comes to personal and business debt.
Boost your financial know-how
It is very difficult to operate a successful business, and make crucial decisions, with a limited understanding of its numbers. Improving your financial knowledge can be of great benefit to the effective running of your business, as well as your peace of mind, by knowing exactly what position your finances are in. When you understand your business finances you can make informed, strategic decisions. If you are hesitant about your business numbers, speaking to a trusted accountant, or even taking a business finance course, can make a positive difference to the effective management of your finances.
If you need assistance or advice about your individual business situation, please get in touch with BLG Business Advisers online or by calling (02) 4229 2211 to find out more.