Every year without fail, January comes rolling around and we set resolutions to better our personal lives such as eating healthier or joining a gym.
Unfortunately, only 9 per cent of those sho set a goal on January 1st will achieve their New Year’s target1. With this in mind, as a franchisee it’s imperative to evaluate the changes you can make to improve your business and most importantly, make them stick. Setting a goal each year will show you how your business has changed and motivate you to strive forward.
“It’s essential to take some time and reflect on your past year and assess your business’s growth, revenue and sales goals. how do they compare to last year?”
Here I share my top five money management resolutions to keep your business heading in the right direction during 2018.
1. Learn strategies to sharpen up cash flow
Cash flow is the core essence of any small business with 41 per cent of Australian small businesses failing due to poor cash-flow management2. Avoid becoming one of the statistics and get on top of your business finances now. Simply put, you have a cash flow problem if your outgoings are more than your incomings. If your business structure allows it, a great way to alleviate cash flow headaches is to take payment via credit card or direct debit. This puts you in control of getting paid on time and allows for more cash into your account more often.
2. Don’t stick your head in the sand
Many small businesses find it hard to keep on top of both current and future tax obligations. Don’t just stick your head in the sand, it’s important to keep yourself up to date with the constant changes in tax laws and regulations. If you don’t understand something, educate yourself. If that’s proving costly time-wise, take up the services of an accountant as soon as you can. The longer you wait before seeking help, the more you might end up having to back pay in tax. This is a cash flow stress your business can avoid. Another way to keep an eye out for these things is to invest in a good piece of accounting software (i.e. Xero) that integrates with your business – smarter technology can ease the pressure.
3. Review growth, revenue and sales goals
It’s essential to take some time and reflect on your past year and assess your business’s growth, revenue and sales goals. How do they compare to last year? Was there anything about your spending last year that raises any red flags? This can help you understand how your business has evolved from the previous year. The bottom line is crucial for any business to stay profitable. If your business has had no significant growth, try to figure out why.
4. If you’re not happy with your accountant, take charge and search for a new one
The New Year is a great time to re-assess your business needs. You might be looking for an accountant to keep on top of business tax payments or looking to switch due to an unsatisfactory current accountant. Either way, there are ways to ease into the transition so it won’t be such a challenge. Make sure you are communicating with your current accountant for a smooth handover and any outstanding work will be performed by the new accountant. Do sufficient research whether it’s through referrals from your contacts, internet searches or advertising. Prepare your objectives and reasons for looking for a new accountant before you meet with them so you can ensure they are providing the exact services you require. Take as much documentation with you as possible relating to your accounts, as this will help your new accountant and also give you an idea of the time and cost involved in fixing up the accounts. Lastly, ensure they are a registered tax agent and not prohibited by law from providing the promised services.
5. Learn to say ‘no’
Small business owners are constantly on the lookout for new clients, partnerships and opportunities to increase growth. Take a step back in 2018 and try to understand that it’s not the best for your business to constantly say “yes” to every opportunity that arises. The real lesson here is to be selective with your decisions and make sure they align with your long-term goals.
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John Corias is the business owner and Senior Partner of m.a.s accountants with 27 years of experience in small business accounting having worked with a variety of clients who all have different needs.
m.a.s accountants is the original accounting office; servicing Sydney and Melbourne small business accountancy needs for over 55 years. They are a dedicated team of experienced small business accountants.
Sydney – 02 9211 5000
Melbourne- 03 8866 1555