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Stay on top of your business finances
Finances can make or break your business, so it’s vital to keep them in check. Here are some tips.
Don’t lose out
Take advantage of recent tax and regulatory changes, such as:
- the $20,000 instant asset write-off threshold, which applies until 30 June 2018 for companies with turnover of less than $10 million
- the new crowd-sourced equity funding regime, which reduces the costs and regulatory requirements for public fundraising
In addition, the lower 27.5 per cent tax rate for businesses with a turnover of less than $25 million comes into force at the start of the 2017–18 financial year.
Brush up on the basics
Have a clear idea of your income streams and expenses. Overestimate expenses and have an emergency fund in case something goes wrong. Constantly review your budget as it will keep changing.
Remember that cash flow is the fuel that keeps a business running smoothly and you need to keep a close eye on it.
Get help with bookkeeping
You might save money by doing your own bookkeeping, but if you aren’t good at it or you can’t find the time, it can hurt your business. Hire a bookkeeper or accountant with the expertise to dissect your numbers and help you calculate your deductions, organise your cash flow and keep your records in order.
Also consider using a finance app or cloud accounting solution that provides real-time insights into your finances and saves you time.
Don’t be afraid to shop around for new suppliers or try to negotiate better deals with existing ones.
Encourage clients to pay you more quickly and email invoices as soon as you complete a job.
Most importantly, take time off to work on your business, rather than just working in it.