Everyone wants to have more money, right? We share below our top tips for improving your bank balance and ensuring your business cash flow is in check.
There are a number of ways to reduce costs, depending on your personal situation. these include:
- Eliminate inefficiencies within your business
- Check supplier invoices for errors
- Eliminate unnecessary costs such as unused phones or computers
- Reduce payroll by outsourcing where possible
- Put procedures in place to ensure tasks are completed quickly and efficiently, saving time
- Use technology and automation where possible to save time
- Sub-let spare office or retail space where possible
- Negotiate discounts and lower prices
- Cancel subscriptions you are no longer using
Invoicing is not as simple as sending an invoice to the client or customer once the works are completed. Part of the invoice process is also to ensure that they are paid on time, depending on your payment terms. Having an accounts receivable policy in place is a simple, yet effective way to ensure your invoices are paid within a certain amount of time. If you are the owner of your business and do not have the time, you may want to consider employing a bookkeeper or an admin staff member to ensure your accounts receivable are being monitored and followed up regularly.
Use a budget and set goals
Setting a budget at the start of each financial year is a key tool for maintaining profitability within any business. Once the budget is set, it is best to then monitor your results each month and look at how the actual figures are comparing against the budget. Once you have reviewed your figures, you can then make internal changes or adjust the budget if and as necessary, depending on the results. If you are not meeting your budget, you may need to make some changes to stay afloat, such as reducing your number of staff members or looking for new ways to grow revenue.
Cash flow is simply the difference between money going out and money coming in. Using online accounting software, such as Xero or MYOB, can make the process of reviewing and managing your cashflow easy. Cashflow management is extremely important, especially for small businesses.
For more cash flow tips from us, visit our blog on Cash Flow is King.
If you need advice or assistance in monitoring your business cash flow, please do not hesitate to contact our team on (07) 5451 1118 or email us.