With so much uncertainty and constant change out there, having cash available in your business has never been more important. Government subsidies can help to an extent to meet costs when you cannot run your business to its full potential, but there are a few things that you can do to help with cash flow to keep operating during these times.
Chase your outstanding debts. Pick up the phone and call those that are overdue in paying you, don’t just rely on email.
Don’t keep selling to bad payers. You will have most likely already paid for the product you are selling or your employee’s time if you sell a service, but if you keep selling to someone who is always late to pay you then you are bearing that cost.
Review your expenses. Are you paying monthly subscriptions for things you don’t use or need? Are there areas you could cut back? Are you getting the best deal?
Keep reviewing your eligibility for the Government subsidies. The Wage Subsidy and the Resurgence Support Payment are both now fortnightly payments. You may not qualify one fortnight, but you could the next if you go through a quiet patch.
Do you have some costs that you can spread payment out over a few months or weeks to help ease cashflow?
Put aside a little bit each week for GST and tax so that you can meet your payment obligations.
Every business is different, but no matter what your business is it is important to understand your numbers, and what is needed to keep your business going. Keeping your financial information up to date assists with this. If you are struggling to understand your numbers or to keep on top of your cashflow, make a time to speak with your accountant / business advisor who is there to help.
This article has been provided by Michelle Barnett of local Accounting firm Strettons.