Do you feel like there’s a black hole sucking up all your profits?
You know your money goes straight in the bank, but somehow, someway, it’s gone before you know it.
Money seems to disappear right before your eyes without warning.
Why is that?
If you keep coming across this issue, then it’s time to stop guessing and to take a hard look at both your business’ cash flow and finances, and turn your business into a well-oiled money-making machine.
Most of the time, we start a business based on what we love to do.
And then we get shell-shocked when we realize that running a business takes more than passion.
It requires financial knowledge, an understanding of cash flow and a whole lot more…
Yes things are always easier said than done.
However, there are ways to review your finances and see where profits disappear in your business.
Check out these tips.
Stay On Top of Everything
We can’t stress the importance of staying on top of everything in your business on a day to day basis, most importantly on your finances.
If you leave things for too long, you won’t have a clear picture of what’s happening in your business.
You have to know your commitments first to know how much money you have to spend.
If you don’t know how to do this or are too time poor, then hire someone to do it for you.
It will save you money in the long run…
Keep Records Organized and Accurate
Keeping on track of everything is a daunting task.
This is where the importance of having a bookkeeper gets into the picture.
You can either leave this to your accountant or use a good online software like Xero.
Make sure you keep records of your daily transactions so that can keep a handle on all your outgoings.
Chase All Your Debts Away
Never, ever, let your debt age too much, or you will end up paying huge interest, which really hurts your cash flow.
Again, stay on top of things, especially on your debts.
There are ways you can restructure if debt is becoming a problem to where it’s hurting your cashflow.
Keep Your Cash Flow Rolling In
Cashflow is the lifeblood of a business.
The best way to keep on top of your cash flow is to send your invoices out on a regular basis.
Never wait for the end of the month to send them all.
Invoice your work as soon as possible.
Download our free cashflow eBook here for more tips on how to increase your cashflow.
Know Your Exact Costs
It is crucial to know where your money is heading.
Thus, make sure you keep track of all your costs and review them regularly.
Are there areas where you can cut a little bit to be able to save money?
How can you do things more efficiently?
Every little bit of savings counts.
Know How to Forecast Well
Do you have big expenses coming up?
A forecast will ensure there aren’t any scary surprises in the days ahead.
Set money aside for such expenses so you won’t have to magically come up with hundreds or thousands of dollars when the time comes.
Get the Help of the Experts
Don’t wear all the hats in your business.
Focus on what your good on and enlist the help of professional business accountants to optimize your profits.
You could be leaving a lot of money on the table, so by enlisting a professional team to help you, you can get an in-depth analysis regarding your business’ financial performance (profits and loss) and help you understand your financial statements better.
Once that’s taken care of we can show you how to optimize areas of your business so that profits stay in your bank account where they belong.