Cashflow tight? Same goes for many other agencies and businesses across Australia at the moment.
We are bringing you our top 6 cash flow tips to help you through when the going is a little tough. We all have them. The best way to get through them is to prepare and take stock of your expenses.
Apart of course from someone handing you over a glass jar full of cash.
Here are our top 6 tips to help your cash flow.
Pay liabilities monthly
Breaking down your quarterly liabilities into monthly chunks makes your big expenses more manageable. Pay your super monthly. Pay your instalment activity statement monthly as opposed to quarterly. It’s amazing how breaking down these payments help not only your bank account but your state of mind as well.
Multiple bank accounts
Set up multiple bank accounts can help to manage your cash flow. Knowing you have specific accounts for specific purposes ensures you have cash readily available when needed. It also avoids regular overspending in certain areas.
For example, your bank accounts could look like this:
E_employee & taxes
Do your research and find the best business bank account on offer with zero fees.
Understand your finances
Sounds simple, but take the time to sit down and really understand your finances. Split your income and delegate your expenses into the above accounts.
For example, based on the above:
B_spending = 25%
C_savings = 10%
D_profit = 10%
E_employee & taxes = 55%
Cull where possible
When it comes to the crunch, we all have expenses that can get the chop. Look at areas you can pull back on. What can you cut? Can your phone go to a lower plan? Consider purchasing a phone outright so you can benefit from lower plan rates. Consider VOIP for office phones. Throw the fax in the bin. Collate all your subscriptions and cut the ones that are not crucial to your operations.
Look at your staffing needs. Do you need all the people you have on staff? Are there underperformers who are not pulling their weight? Would you benefit by outsourcing particular property management, trust accounting or bookkeeping tasks externally to save time? Are you utilising all the tools on offer to make your team more productive?
Take advantage of an instant cash flow boost
As part of the COVID government stimulus package, the second cash flow boost for the June quarter is available once you lodge your Business Activity Statement. Get it in as soon as possible.
Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 23 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.