Every small business owner wants their business to thrive, but it can be tough to keep the money coming in while staying on top of all the necessary paperwork. One way to ensure success is to understand the behaviours that separate a well-managed business from one that’s just muddling through. Here’s five simple steps that might help your business run smoothly:
- Know your cash flow – All successful small businesses use a cash flow projection or budget tool. If you don’t have clear insights into your cash flow position and aren’t carefully managing the business’s income and expenses, it can be a recipe for trouble. A cash flow projection or budget tool can be as simple or as complex as you need.
- Get your income and expenses right – Well-run businesses declare all their income (including any cash income) in their income tax return. It’s also important to carefully apportion (or split) your business expenses between private and business use. Keeping good records and having effective tools in place so you can easily reconcile your business’s income and expenses is vital.
- Use professionals – With so many rules and regulations, it’s not surprising that business owners may occasionally overlook some of their obligations. There is an easy solution though. Well-run small businesses seek professional advice when they need it. We can work with you to improve your business overall, not just to meet your tax obligations.
- Be on time – While debt is one of the key reasons that small businesses fail, the ATO is providing assistance to small businesses to help them avoid it by enabling pre-payments of tax liabilities to assist in managing cash flow. Remember, ensuring you lodge on time will ensure your business does not incur any harsh overdue penalties.
- Stay informed – Take the time to understand your tax and super obligations and keep on top of any changes affecting your business processes. Sign up for our e-newsletter here for all the latest industry news>
Although many of these indicators are straightforward, it’s surprising how many small businesses don’t take these simple actions. Give us call if you need help getting the basics right for your business.