5 Proven Strategies to Maximise Your Small Business Finances
So you’re running a small business and finding yourself puzzled by excessive taxes or insufficient funds in your bank account, despite being told by your accountant that you’re making money. This article will share five effective tips that have helped numerous clients increase their profitability and financial stability.
Putting More Money in Your Pocket
Embrace Online Accounting: Utilise robust accounting software like Xero to provide transparency and facilitate collaboration among your accountant, bookkeeper, and financial adviser. By granting access and ensuring daily reconciliation, you can identify and address any emerging issues promptly. Regular check-ins will keep you on track toward achieving your business goals and experiencing a sense of accomplishment.- Master Cashflow and Budgeting: Develop a comprehensive cashflow and budget plan, regularly updating it monthly or even weekly. Analyse your previous year’s spending by category, identify trends, and project your expenses for the upcoming financial year. Similarly, estimate and categorise your income to anticipate fluctuations and potential changes.
- Review Fixed Charges: Revisit your fixed expenses annually, including IT, internet, phone, and utility services. You might be surprised by the cost savings or additional benefits that can be obtained by switching providers or negotiating better deals.
- Efficient Outsourcing: Evaluate your business processes and consider outsourcing tasks that are currently handled in-house. Assess the time and cost efficiency of activities like marketing or document preparation. Outsourcing to specialists can often deliver superior results at a fraction of the time and cost, allowing you to focus on core business operations.
- Embrace Technology: Leverage technology tools such as Skype, FaceTime, or Zoom to minimize travel time and associated expenses for local or interstate meetings. Explore alternative communication methods like email and SMS to replace postage or courier services. Utilize electronic options for client document signing to eliminate printing and postage costs.
Managing Your Tax Obligations: It is crucial for small businesses to understand their tax obligations and seek professional guidance. Tax planning and compliance play a vital role in maximizing your profits and minimizing tax liabilities. For expert advice on managing your tax obligations effectively, consult with our experienced team at JBS Financial.
By keeping a watchful eye on your finances and implementing these small changes, you can significantly impact your cash flow. The cumulative effect of these adjustments can greatly boost your profitability and help you achieve your current and future goals. Don’t hesitate to take control of your small business finances and reap the rewards for yourself and your family.
Remember, every small change counts when it comes to financial success. Reach out to us at JBS Financial for expert guidance on optimising your small business finances and unlocking greater profitability. Get started here.
For more information on managing your tax obligations, visit [ATO].