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.

Be proactive

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.

If you would like to know more, please contact me.

Paul Stott

Stottsure Financial Advice

Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author.

 The information provided in this document, including any tax information, is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429