1. Determine your break-even 

2. Focus on Cashflow Management, not profits
3. Maintain cash reserves
4. Use a Cashflow Worksheet
5. Collect receivables as soon as possible
6. Encourage Customers to pay faster
7. Extend payables as long as possible
8. Boost sales with creative incentives
9. Monitor Cashflow
10. Contact Blackburn Accounting for your financial & accounting advice. Blackburn Accounting your family business specialists.

 

If you are experiencing Cashflow problems or simply want to better manage the financial flow of your Business these 10 Top Tips are a lifeline!
Grab hold and follow the steps to help you from sinking!

 

 

1. Determine your breakeven point.
This is the point at which total revenue equals total costs or expenses. At this point there is no profit or loss.


2. Focus on Cashflow Management, not profit.
Strategies include;
• Keep your books accurate and up to date
• Adopt simple accounting practices
• Separate Business and personal finances (and expenses)
• Engage a professional Accountant for professional advice

3. Maintain cash reserves
Access to cash will make or break your Business. Always maintain a cash reserve to provide the cushion you need to manage unexpected situations. Even a small amount can help in a time of crisis.

4. Use a Cashflow Worksheet
In a nutshell, Cashflow is the net amount of cash that a company receives and spends during a given period of time. It therefore makes sound business sense to maintain a Cashflow Worksheet to capture the associated Business activities to better manage your financial affairs, including meeting compliance requirements. The Worksheet can be used to monitor and gauge inflows, income fluxes and help to avoid financial mishaps! Think of it as a lifeline for Cashflow Survival!

5. Collect receivables as soon as possible
The sooner your customers pays you, the sooner that money is working for your Business.
Consider adopting a range of payment methods including Online systems.
With the click of a button and issuing of an invoice, the money (payment) can be easily deposited directly into your account. Quick turnaround and easy as, and no waiting for a payment later.

 

Above are 5 Top Tips to help you survive.
We encourage, follow all 10 Tops Tips to survive your Cashflow challenges!

 

1. Track Your Spending

2. Set Financial Goals
3. Prioritise Your Expenses
4. Compare prices
5. Grow Your Savings
These are practical, proven Steps and Tips for setting and monitoring your financial affairs and activities. 5 Success Steps to Budgeting- Makes sense of cents!

Blackburn Accounting is qualified to provide professional services to help you with your Budget Planning.

We offer individualised service that helps you keep on top of your cash-flow, assist in strategic planning and develop your capacity for growth and expansion.
It starts with a conversation. Contact us now!

The BENEFITS of Budget Planning.

Simply, a Budget is a spending plan which helps you understand your real financial position by capturing what’s going out and what’s coming in. This snapshot is critical in managing both Business and personal finances.

A budget breaks down your income and expenses so you can manage your spending and saving activities, providing a true picture, thus avoiding guesswork. Maintaining an accurate Budget helps keep your spending on track, can help you and your money work smarter and may uncover some hidden cash flow problems. Problems better discovered sooner than later.

1. Tracking your spending
Knowing where your money is going by keeping a ‘spending diary’ is a great start to getting a true picture of your spending habits. You need to get a firm handle on what you’re currently spending, what you can afford to spend, and what your priorities are. By keeping a Budget you can gain control of your money rather than money controlling you.

2. Set Financial Goals
Determine your short, medium and long term financial goals.
Once you have an overall picture for your budget, that is your net pay/income, and then expenses tracked, setting your financial goals is crucial.
Start by making a list of both short, medium and long-term financial goals that you want your new budget to help you achieve. To allocate funds accordingly to reach your goals, a good idea to determine your needs versus your wants. This applies to both business and personal financial activities.

3. Prioritise Your Expenses
It’s important to prioritise your expenses to know your true situation and what your essential monthly expense are. Your categorised and tracked fixed and variable expenses will help you predict how much you have to budget.
Knowing what is an absolute necessity and having money set aside for the essentials can protect you from overspending, resulting in a ‘cash’ short- fall. Keeping on top of Creditors accounts, including negotiating payment arrangements are critical in managing the Budget balance. As critical is managing your Debtors to get monies owed paid in to you as soon as possible.

4. Compare Prices
If you are buying goods or services shop around and compare prices to get the best deal. Look out for packages, bonuses or incentives that can help you save money.
Review your tracked expenses to see if there are different products around such as new internet provider plans, motor vehicle deals can vary. There are savings to be found if you look.

5. Grow Your Savings
Consider setting up separate accounts if you have identified a specific goal item. A target amount can be deposited regularly without major impact and will help grow your savings.
Don’t be afraid to ask for discounts, best deals or special offers to help boost your savings funds. Better in your bank account than someone else’s.

 

Be organised.
Keeping records can take away much of the stress when it comes to taxation time. Start now! Set-up processes, methods and systems for filing paperwork. Secure important documents. Make a 'photo' copy of documents as ink can fade.


Seek guidance
Not sure if an item is claimable. Don't hesitate, ask now rather than later.


Change in circumstances
Keep on top of things. Discuss any changes with your Accountant


7 Steps and Strategies for moving forward
Having survived the tough times now is the time to prepare your Business Recovery Plan. What will this look like? How to get started?
This begins by preparing to position your business for sustainable growth.
Step 1: Underpinning your Recovery Plan is the implementation of the best practice procedures. It is important to maintain a disciplined approach to working capital management, focus on increasing profitability and improving efficiency.
Step 2: Complete a Financial Health Check
Step 3: Undertake a situation analysis
Step 4: Review & Rewrite your Business Plan
Step 5: Review & Revise your Marketing Plan
Step 6: Remain focused on improving your cash position
Step 7: For more steps and strategies contact Blackburn Accounting. Contact our office today to get the templates and work through your recovery plan.

Step 1: Underpinning your Recovery Plan is the implementation of the best practice procedures. Maintain a disciplined approach to working capital management, focusing on increasing profitability and improving efficiency.


Step 2: Complete a Financial Health Check
Identify and check key indicators such as;
• cash balance
• value of daily sales
• value of orders
• debtors balance
• Analysis of your financial statements regularly will help you make better informed decisions. It also helps detect and respond to any adverse movements and to see opportunities.
• Analyse your liquidity, daily if necessary
• Understand the business solvency position, to reduce business stress.


Step 3: Undertake a situation analysis. This allows you to take an objective look at your Business.

 

 5 Practical Tips to keep your cashflow up-to-date
1.Connect all your Business accounts in a system such as XERO to have the full picture. EG Bank Accounts, Loans, and Credit cards.
2. Reconcile frequently. Check your transactions (incoming/outgoing) against the records and statements to ensure they are correct.
3. Manage expenses. It is important to stay on top of Business expenditure. Correctly account for all expenses, including those you have paid personally and personal expenses paid for from business accounts.
4. Record and monitor due payment dates. Keep track of your payments. When an invoice won't be paid by the due date add an expected payment date. This gives a more accurate record of when money is scheduled to come out of your account.
5. For further advice contact Blackburn Accounting.

imgx

Having survived the tough times, now is the time to prepare your Business Recovery Plan.
What will this look like? How to get started?
This begins by preparing to position your business for sustainable growth.
Step 1: Underpinning your Recovery Plan is the implementation of the best practice procedures.
It is important to maintain a disciplined approach to working capital management, focus on increasing profitability and improving efficiency.
Step 2: Complete a Financial Health Check
Step 3: Undertake a situation analysis
Step 4: Review & Rewrite your Business Plan
Step 5: Review & Revise your Marketing Plan
Step 6: Remain focused on improving your cash position
Step 7: For more steps and strategies contact Blackburn Accounting. Contact our office today to get the templates and work through your recovery plan.