10 Tips For Keeping An Eye On Your Business Money

All business owners want to make more money. However, to survive in business you also need to be aware of when you make the money and when you spend it. 

Cash flow is king! Even a highly successful business can find itself in real danger if they do not stay on top of their cash flow.

Here are our top 10 Tips For Keeping An Eye On Your Business Money:-

1. Get Advice Early

Many business owners are “penny wise and pouch foolish” when it comes to spending money on Solicitors, Bookkeepers and Accountants. Don’t wait until your business is in dire straits financially or legally before getting help.

2. Keep Your Valuable Employees

Pay them well, provide competitive benefits and don’t forget to say “thank you” from time to time. This is so important with the current skill shortages hitting WA businesses.

3. Review Invoicing Systems

Send your invoices on time, do them regularly, every day, week, or month. Don’t let this slip!

4. Manage Credit Cards

Develop a timetable to ensure they are paid on or before due dates and avoid late payment penalties.

5. Keep a Clean Credit History

It is Essential for future borrowing plans to have a clean credit record. If for some reason bills cannot be paid on time, keep your suppliers informed of your progress. This will minimise the risk of being issued with default notices which can impact credit rating.

6. Develop an Annual Plan

An annual plan shows what you want to do and, as importantly, what you do NOT want to do in the coming year.

7. Set out an Annual Marketing Plan

Marketing is an essential part of any business strategy, usually an ongoing activity and something to be planned, not just done in emergencies or because you have the chance to.

8. Take Advantage of Discounts

Paying suppliers early will often attract early payment discounts. It will also place your business on more favourable terms, which may enable your business to negotiate better pricing.

9. Comparison Shop

Routinely review deals on services and products you already use. It may be the case that your supplier has changed their pricing system and simply not notified you. Get competitive bids even for a supplier that you are satisfied with.

10. Develop “just in time” inventory management

Work with suppliers to determine how quickly and regularly they can replenish inventory. This may mean paying a little more per item but may free up a lot of cash from income-producing activities. Work to make the ordering process as easy and simple for your supplier as possible.

To discuss how we can help manage your business money better click here to make an appointment with one of our experts today.