profitable book-keeping

Business owners are constantly reminded of the frightening statistics surrounding the number of businesses that fail due to poor cash flow. Successful cash flow management involves regulating the money flowing in and out of your business. An increased, consistent cash flow is not only the lifeblood of a business, it also creates a predictable business pattern, making it easier to plan and budget for future growth.

The faster your receivables turn over, the more capital you'll be able to spend on growing your business.

Here are a few tips to better manage your cashflow:

• Invoice early and often
• Shorten your terms from 30 days to 21 or 14 days. You'll get paid earlier - before your supplier's bill is due!
• Regularly chase outstanding debtors
• If you use credit terms, enforce them
• Check your procedures for reviewing credit rating of new customers
• Issue monthly statements
• Telephone contacts with old debtors may give better results than reminder letters
• Plan and save for when your larger bills are due
• Put away your GST collected regularly
• Have a cash flow budget and stick to it.

Is your business performing at its best

By analysing where you come from, where you are now and where you are heading, the Business Health Check will give you a good idea of your current business position.

It also assesses your level of compliance as it is the responsibility of all business owners to be aware of the legal aspects involved in running a business.

• Have you completed your Work Cover form?
• Have you handed out your Payment Summaries?
• Have you paid the correct amount of Superannuation for your staff?
• What is your break-even point?
• Are you achieving good strong margins?
• How do you know if you are carrying too little or too much stock?
• And much, much more.