3 Simple Ways To Improve Your Cash Flow This Financial Year
As we wave goodbye to the end of the financial year for 2016/2017 and move on to 2017/2018, it is easy to get excited. A new year provides so many opportunities for growth, change and development – what’s not to get excited about! The start of the new tax year is also a great time to plan ahead to maximise your cash flow. Here are three ways to help improve your cash flow this financial year. Change those payment terms to benefit your business Are there changes you can make to your policies to ensure that money comes through the door quicker? Can you ask clients to pay upfront or place a down payment in advance on large projects, so you are not out of pocket? Could you consider changing your terms for payment to ‘in full upon completion’ rather than extending them by another 30 or 60 days upon completion? Requests like this make smart business sense, particularly for small business owners whose cash flow may not be as fluid as they would like. Set up a plan to collect late payments sooner rather than later Naturally, you hope that everyone will pay their bills on time, but sometimes that...
Read MoreHave You Chosen Your Bookkeeper Yet?
In barely two months’ time, the end of the financial year will be upon us, once again. Even though this deadline rolls around every June 30th, most of us still haven’t been keeping up with our books. It can take a bit of time to get your accounts in order, but end of the financial year deadlines really aren’t flexible. You can’t put off calculating and lodging your BAS, IAS and Payment Summery Statements for the year, as well as calculating and paying superannuation and other fees and taxes. That’s why you should really take the time to find a bookkeeper now, before your paperwork gets further behind. The Benefits of Hiring a Professional Bookkeeper The benefits of hiring a bookkeeper go far beyond mere data entry and reconciliation of your accounts. By taking over your tedious paperwork, they literally unshackle you from your desk so that you have more time for important things such as dazzling your clients or being with your loved ones. In addition to saving you time, a bookkeeper can remove a lot of the hassle associated with keeping up with your accounts. They can create some simple systems to better track and manage your money, such...
Read MoreDid You Make Any Of These End Of Year Mistakes?
If you are like many small business owners, you may be struggling with financial documents and accounting paperwork related to your end of year financial processes. Despite the importance of accurately completing these forms in a timely manner, there are several common mistakes that are made by small business owners as they near the end of their financial year. Are You Prepared? A recent survey of the members of the Institute of Public Accountants (IPA) reveals that over 40% of small business owners needed more preparation to complete their end of year statements, and 4% were completely unprepared when they met with their accountants. While 56% of small business owners were well prepared, most still needed help from their accountant to tie up loose ends for their end of year paperwork to be complete. Keeping your records up-to-date, throughout the fiscal year, makes completing your end of the year financials easier on you and your accountant. Another common mistake that small business owners make is that over 58% wait until the end of the year to contact their accountant. If you aren’t having regular, consistent contact with your accountant, throughout the fiscal year, you are missing out on the...
Read MoreTax Time – A Time To Look Ahead
If you are a small business owner then of course it is your intention to dot the I’s and cross the T’s in order to complete everything that needs to be done at tax time. While this is important, what you really should be doing in addition to this, is planning ahead for the new financial year so that things run even better than ever. Did you know that most small businesses fail in the first five years of start-up and generally this is due to cash flow issues, high expenses and low profits? For this reason you need to review the previous financial year so you can better position yourself to meet and exceed your financial and business goals for the year ahead. Were there unexpected periods (whether high or low) that shout “anomaly”? Try to understand why these occurred so you better plan for these events should they happen in the current financial year. Not writing it down can be an exercise in disaster. If you keep relevant information in your head then miscalculations and assumptions can occur. Write it all down even if it is not part of the specific budget – you can always include...
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