3 small business finance tips
Managing your finances effectively is crucial for any business, especially small businesses that may not have significant cash reserves to sustain them long-term.
Here are 3 tips to help you manage your small business finances better.
Tip #1. Forecast and monitor your cash flow
Forecasting your cash flow involves projecting your business income and expenses. This helps you to identify if you’ll be able to meet all your expenses when they fall due. You might need to do weekly, fortnightly, monthly, quarterly, half-yearly or yearly cash flow forecasts, depending on your business needs.
Once you have done your cash flow forecast, it’s important to monitor your actual cash flow and to take steps to rectify any discrepancies if necessary. A good cash flow is the lifeblood of any successful business.
Tip #2. Set SMART financial goals
SMART is an acronym that stands for:
· Time-bound (in other words, the goal has a deadline for achievement).
Setting SMART financial goals helps to give your business direction. It encourages you to plan and take the necessary steps to achieve your business goals.
Tip #3. Use a cloud accounting tool
Cloud accounting tools like Xero software can help you to quickly and easily manage your business finances, even if you don’t have a lot of financial knowledge.
Our team at Scorpion Bookkeeping can help you to set up cloud-based Xero software to help you manage your business finances and ensure your compliance with any ATO reporting requirements. We are a Xero-certified partner.
We can also provide your business with cost-effective bookkeeping support services. We service a diverse range of clients in South Australia, Victoria and New South Wales.
Contact us today for a free, no-obligation consultation to find out how we can help! We’d be happy to answer any questions you have.