This makes it much more important to also evaluate the changes you can make to improve your business and most importantly, make them stick. Setting a goal yearly will show how your business has changed and motivate you to strive forward.
1. Learn strategies to sharpen up cash flow
Cash flow is the core essence of any small business with 41% of Australian small businesses failing due to poor cash-flow management. Avoid becoming one of the statistics and get on top of your business finances now. Simply put, you have a cash flow problem if your outgoings are more than your incomings. If your business structure allows it, a great way to alleviate cash flow headaches is to take payment via credit card or direct debit. This puts you in control of getting paid on time and allows for more cash into your account more often.
Raising capital through your business assets could also help solve cash flow issues both short and long term whilst providing taxation benefits. Morris Finance are able to raise funds from a number of commercial goods. Unlike major institutions, we do not discriminate between goods, industries or profiles and our terms are flexible, providing tailored solutions to meet your needs and goals.
2. Don’t stick your head in the sand
Many small businesses find it hard to keep on top of both current and future tax obligations. Don’t just stick your head in the sand, it’s important to keep yourself up to date with the constant changes in tax laws and regulations. If you don’t understand something, educate yourself. If that’s proving costly time-wise, take up the services of an accountant as soon as you can. The longer you wait before seeking help, the more you might end up having to back pay in tax. This is a cash flow stress your business can avoid. Another way to keep an eye out for these things is to invest in a good piece of accounting software (i.e. Xero) that integrates with your business – smarter technology can ease the pressure.
3. Learn to say ‘no’
Small business owners are constantly on the lookout for new clients, partnerships and opportunities to increase growth. Take a step back and try to understand that it’s not the best for your business to constantly say “yes” to every opportunity that arises. The real lesson here is to be selective with your decisions and make sure they align with your long term goals.
4. If you’re not happy with your accountant, take charge and search for a new one
You might be looking for an accountant to keep on top of business tax payments or looking to switch due to an unsatisfactory current accountant. Either way, there are ways to ease into the transition so it won’t be such a challenge. Make sure you are communicating with your current accountant for a smooth handover and any outstanding work will be performed by the new accountant. Do sufficient research whether it’s through referrals from your contacts, internet searches or advertising. Prepare your objectives and reasons for looking for a new accountant before you meet with them so you can ensure they are providing the exact services you require. Take as much documentation with you as possible relating to your accounts, as this will help your new accountant and also give you an idea of the time and cost involved in fixing up the accounts. Lastly, ensure they are a registered tax agent and not prohibited by law from providing the promised services.
5. Review growth, revenue and sales goals
It’s essential to take some time and reflect on your past year and assess your business’s growth, revenue and sales goals. How do they compare to last year? Was there anything about your spending last year that raises any red flags? This can help you understand how your business has evolved from the previous year. The bottom line is crucial for any business to stay profitable. If your business has had no significant growth, try to figure out why.
Morris Finance offer a range of commercial products to provide cash flow for your business. Our team of dedicated finance brokers and new business specialists can provide you with information and access to financial solutions that will allow you to grow your business.
Contact us today to learn more about how we can help you raise capital.