Credit limits are designed to prevent debt from escalating out of control. Put a credit limit on all customer accounts and then put an automatic ‘stop credit’ on any overdue accounts. It’s also sensible to train your staff in how to approach a customer who has reached their credit limit so that the account can be settled in an efficient and professional manner. You could also set up automatic reminders… Read more
If you want to increase sales as quickly as you can, you’re going to need an efficient marketing plan and a highly targeted sales strategy. Step 1. Sell more to your existing customers If you have existing customers that would buy again from you or inactive customers waiting to be contacted again, then you may be able to increase sales by simply focusing on what is right in front of… Read more
While it may be challenging to predict what the future holds, history shows us that economies will eventually recover from major disruptions. It’s useful to reflect on how your business can adapt to global challenges, whether they stem from economic downturns, natural disasters, or unexpected changes in the marketplace. The goal is to prepare your business for the future, reducing the impact of any major disruptions that could arise. It’s… Read more
A business can survive for a short time without sales or profits, but not without cash. It is cash which pays the bills and allows trading to continue. If you are growing and extending credit to more customers, the need for cash is even greater. Progress payments When you negotiate contracts with customers be aware of setting payment terms that help your cash flow, such as deposits or progress payments.… Read more
An up-to-date business cash flow forecast can help you manage your business more efficiently. It’s an estimate of the amount of money you expect to flow in and out of your business. It includes all your projected income and expenses and usually covers the next year, though it can also cover a shorter period such as a week or month. Ideally you should develop at least three scenarios for your… Read more
If you currently owe money to the ATO, it’s about to get more costly. From 1 July 2025, the two most common interest charges the ATO applies to late or underpaid tax will no longer be tax deductible. That means both individuals and businesses will soon face a higher real cost of holding tax debt. What types of ATO interest will no longer be deductible? General Interest Charge (GIC) This… Read more
Selecting the right accounting software is a crucial decision for your small business’s financial health and accuracy. With numerous options available, this process can seem daunting, but making an informed choice is essential to streamline operations and mitigate risks such as financial fraud and regulatory non-compliance. Introduction The challenge of choosing appropriate accounting software stems from the need to balance functionality, ease of use, and cost-effectiveness. As cloud computing continues… Read more
Understanding financial statements might sound daunting, but it’s crucial for small business owners to stay on top of their game. Each financial report offers unique insights into different aspects of your company’s health. This listicle will break down the essentials, helping you make informed decisions and ultimately steer your business toward success. 1. Balance sheet What is it? The balance sheet provides a snapshot of your company’s financial position at… Read more
You’ve likely heard the phrase “in the black.” Your balance sheet is the tool that shows you whether your business is indeed “in the black.” Your balance sheet includes a section for your assets (things you own or will receive that have value), your liabilities (what you owe to others) and equity (retained earnings and funds from investors) at a specific time. The relationship between these three sections shows how… Read more
As a business owner, you’ll need to stay informed about your finances and your financial situation. You do this through bookkeeping. Bookkeeping is the process of recording transactions in your business. This includes any transactions, credit card charges and any other financial activity that happens within your company. How good bookkeeping helps you Bookkeeping is vital for any business. First, it helps you understand your finances. Bookkeeping gives you insights… Read more
Starting a new business is exciting, but it also comes with its fair share of responsibilities. One of the most critical responsibilities is maintaining accurate records of your business transactions. From saving receipts to processing employee payroll, every money-related detail should be documented. It’s not just about keeping things tidy; it’s about understanding the financial health of your business and meeting all your tax obligations. Don’t underestimate the basics Some… Read more