The start of another year is a great opportunity to get back on track and do better in your business. Let’s say goodbye to the old habits and welcome new practices to help you achieve your business goals.
If you are still not sure what resolutions you should be doing this year, we listed ideas you can apply moving forward. These practices may look simple but create a significant impact on your business improvement if done consistently.
Review and understand your numbers regularly
Not everyone is a fan of looking at numbers. The struggle is understandable – especially if this is not your expertise.
However, the inability to understand your financial position challenges you to make informed decisions in driving your business to where it should be. You can begin by doing these three steps:
- Update your financial records
- Compare your records to prior periods when reviewing your financials. This shows you the positive or negative impact of your business decisions.
- Talk with a trusted and qualified individual about your financial standing. This can be a business partner, your accountant, or your bookkeeper. They might spot problems you may have overlooked.
Build and protect your cash flow
January can be a difficult month to build a cash flow due to office shutdowns and staff leave. If your business is currently struggling with cash flow, this should be a priority.
Every business runs the risk of owing more than what it can pay. The key is to have a faster working capital cycle that converts business activities into available cash. For example, are you lenient with late payments? This may be a time for you to look at your existing payment collection policies.
Check your debtor management process
Good debtor management creates a healthy business cash flow. This reduces the stress of dealing with late payments that affect your working capital.
Start setting aside a day each week to follow up on your debtors. Take this opportunity to catch up with them and know other pain points you may be able to help them with.
Remember: Consistency is the key.
Delegate tasks that need expertise
This can be accounting or bookkeeping tasks that you can delegate. Find an expert who can guide you through:
- Understanding your financial position
- Improving your cash flow
- Setting a realistic budget to meet your business goals
Do not be afraid to seek an expert’s help or advise. Do it as soon as potential financial mismanagement gets more serious over time.
Stay updated with the latest compliance requirements
If you are a small business owner, staying on top of your compliance requirements can be difficult. This also includes understanding how changes in the legislative requirements can affect your business.
Having a qualified bookkeeper help you put compliance at the forefront of your financial thinking. Other than this, they also provide support in:
- Managing tax obligations
- Tracking your receivables and payables
- Bank reconciliation
Looking for a qualified bookkeeper?
Focus Bookkeeping provides quality bookkeeping and BAS services for many businesses. We offer solid business advice to ensure you understand the financial and obligatory perspective of your business.