Managing your money
As a business owner it is important to ensure complete financial control if you wish to maintain and improve the health of your business. Enlisting the help of an accountant for expert financial advice, is essential when making important financial decisions. The following are some of the key areas you might want to discuss with your accountant:
- Managing cash flow – Making timely cash flow projections or estimates can help you prepare for the future; maintain cash reserves for paying debts or investing into the business; save money by transferring excess funds into interest-generating ventures; and manage borrowing and relationships with banks and lenders. Once you have tabs on your cash flow, you can make better informed decisions about your budget.
- Loans – There are various loan schemes available to small and medium businesses so it is a good idea to undertake extensive research and measure the advantages and disadvantages of every scheme to choose the loan that best serves your needs.
- High-risk debtors – Clients who owe you money can be a nightmare. Obtaining credit references for companies you wish to deal with is a good way to learn more about their background. Make sure the payment terms are clearly outlined and leave no scope for ambiguity.
- Bookkeeping – In order to make the right financial decisions at the right time, it is essential to maintain accurate and up-to-date records of all your financial transactions. Also note that it is mandatory to submit all necessary financial documents to the ATO for tax purposes.