Business Development

 

Tracking your Sales and Expenses for the purpose of calculating your GST Obligations is not only a legislative requirement, but can also be done in a way to give you the tools to analyse your business.  Use this information to produce budgets and cash flow forecast.  Know where your business is at, maintain budgets and plan your Cash flow.

Business Plans are not just for the purpose of gaining start up funds, they are also important for Business Continuity.  Business Plans can also be a great reference source, at the end of a period of time they can be compared to current position.l  The business plan can then be revised or modified according to market trends, economic climate or opposition influences.  Just take care, even if your business achieved your goals, don’t relax, keep planning.

Some of the biggest financial burdens facing businesses is often the Quarterly GST, Super and PAYG Bills.  Many banks offer higher interest on “Online Accounts”, accounts that you can “PARK” you GST, Super and PAYG obligations on a weekly basis, helping to alleviate that large requirement which often strangles cash flow.  The added benefit is that you get to earn interest on the GOVERNMENTS money until your obligations are due.

While Budgets and Cash flows are similar, they each serve a different purpose:

  • BUDGET:  A budget is a prediction of future earnings and expenses for a given period of time, and focuses on the Profits of a business.  Its an invaluable tool to help you prioritise your spending and manage your money.
  • CASH FLOW FORCAST:  A forecast of the movement of available funds.  A Cash flow forecast includes not only the Sales Receipts and Payments of a business, but also takes into account Loan and Lease Repayments, payment of Liabilities (BAS and Super) etc.  Forecasting helps you to identify potential shortfalls in cash balance and foresee potential problems before they occur.

KNOW YOUR CUSTOMERS:  Who are your top 10 customers, it might surprise you that the customer that takes up most of your time may not actually be your greatest income source.  Of your top 10 Customers what are their average days to pay.

WHICH PRODUCT HAS THE GREATEST TURNOVER:  Of the products you sell which have the greatest turnover and generate the highest return?

We can help you to track and analyse your business, plan to succeed.  Make it your business to know where your money is going and when.Banner Bar Horizontal