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If you have answered yes to the above questions keep reading, we have strategies to help you.

We all know the importance of carefully managing your finances to stabilise your Business, so it goes without saying that carefully managing debt is paramount to survival.

In essence controlling debt, effectively managing it is crucial for small Business.  

Most of us have a financial business strategy that needs to be carefully managed in order to benefit your Business. But if neglected or mismanaged debt can destroy you and your Business.  In the current economic environment of inflationary pressures and rising prices now more than ever managing debt is essential for Business survival.  If you are feeling worried or overwhelmed, seek professional financial help if needed, debt problems don’t usually go away or solve themselves. Don’t wait until your Business is in a financial crisis!

Contact us now, Blackburn Accounting we can help you manage your cashflow and get on top of debt. 

8 Effective Debt Management strategies to guide you. 

Strategy 1: Review and Prioritise your Debts. Gather relevant details, you need to know who is owed what and when is it due and importantly how to pay them. Your liabilities can include

• ATO obligations – GST, Income tax
• Super obligations
• Loan repayments and overdrafts
• Suppliers

Strategy 2: Revisit, Rework your Budget.  Your budget should identify all income sources, fixed costs and variable expenses. With careful examination you might find areas for savings, or trimmings. This is a critical exercise to get the full factual picture.

Strategy 3: Cashflow Management. Managing Cashflow is tracking and knowing what's coming in from revenue and what's going out for expenses. Managing this flow is vital for any Business and is the lifeline for small enterprises. And there are effective ways to better manage and keep on top of this.

You can improve your cashflow by:

• Carefully managing payables and receivables.
• Issue Invoices as you provide your goods or services. The quicker invoices are issued the quicker you get paid.
• Consider taking deposits or up-front part payments where possible.
• Negotiate longer payment terms with your suppliers.
• Setup online payment options, automated reminders and install accounting software to better manage processes.

Strategy 4: Reduce spending. To find ways for cutting costs review all your spending, expenditure and identify possible areas for savings. Before taking action, check measures that it doesn't impact on the Business activities or objectives. 

Strategy 5: Contact your Creditors. Be up front. Speak with your creditors asap to explore solutions, such as, negotiating extended payment terms. Most will appreciate your proactive action. Also, discuss with your Suppliers possible better pricing or deals.

Strategy 6: Call in your Debtors. Remember you are running a Business.  Don't be too lenient with your debtors. Adopt a payment 'receivables' strategy and closely monitor the situation. Money keeps the cashflow flowing.

Strategy 7: Consolidate Business Debt . Consider if there is the opportunity to consolidate your debts by combining loans into one monthly payment.  Refinancing can help if meeting repayments is difficult. Ensure you do your homework before taking any action. Shop around for best deals and offers.

Strategy 8: Seek professional advice, speak to us, Blackburn Accounting if you need help get on top of your debt or cashflow problems.