Managing money is a hugely important part of your business. Effective cashflow control is crucial to avoid issues like overdrawn accounts and unnecessary bank fees.

Professional Accounting Advice

Unless you are skilled in accounting, you should locate a compatible accountant. Local small business groups or your local Chamber of Commerce can be excellent sources for introductions.

• Interview potential accountants: Understand their service offering and determine who you will be liaising with day-to-day.
• Clarify fees: Confirm what services to expect and how charging works before entering into any arrangements.

Your accountant will likely have a preferred software platform, such as Xero or MYOB, which provides visibility of your banking and taxation accounts via a monthly subscription.

Daily Cashflow Tracking

We suggest using a tool like Google Sheets to track your bank balance almost daily.

• Record all transactions: Log outgoing payments as they are scheduled and income as it is received.
• Monitor for issues: Tracking daily allows you to take action before problems occur.
• Avoid fees: Overdrawn account fees should be avoided; they signal a lack of adequate control over your cashflow.

Invoicing and Payments

• Invoice promptly: Issue invoices as soon as goods or services are provided.
• Enforce payment terms: If you offer terms, follow up on non-payment immediately. Stop providing further goods until the account is settled. If you do not “police” your terms, you are simply providing an interest-free loan to your customers.
• Optimise outgoing cash: Take full advantage of any payment terms offered by your own creditors. Schedule your payments to optimise your available cash.