Business looking less than pretty?

Give it a makeover with these 8 money management tips

By Sophia Auld

If you’ve felt like it’s getting harder to stay on top of your business finances, you could be right. According to the Australian Bureau of Statistics, 57% of all businesses experienced increased costs in the three months to April 2022. Many of them (48%) have completely or partially passed on increased costs to customers – which is one way of keeping your finances under control.

If your business finances are looking less than pretty, here are eight other ways you can give them a makeover.

1. Control your spending

With business costs on the rise, it’s a good idea to review your spending and look for ways to reduce your overheads. For example, could you find a more affordable supplier? Is your marketing spend delivering a good return on investment? Are you using your business credit card to cover small expenses (like coffees for your staff) that add up over time? If you have multiple accounts, ensure you know how much you’re spending from each one.

2. Overhaul your billing strategy

All businesses deal with late payers from time to time. But if your cash flow is constantly constrained by unpaid accounts, it could be time to look at your billing processes. Consider implementing shorter payment terms or offering a discount for early payment.

3. Manage inventory

If you hold stock, you know managing it involves a delicate balance between being able to serve your customers and having cash tied up unnecessarily. To tread this fine line, keep track of your inventory. You could record and track purchases and sales manually (a spreadsheet will do) or invest in inventory management software.

4. Invest in your business

Putting money back into your business strategically can set you up for future success. For example, you might want to invest in a marketing strategy or launch a new line of products or services. If you plan to grow, aim to set aside money to take advantage of opportunities.

5. Save for success

While it’s important to put money back into your business, having a cash reserve can keep you afloat should the unexpected happen. Having some money in a business savings account not only gives you peace of mind, but will help if emergency expenses crop up.

6. Review regularly

In the day-to-day juggle of running a business, it can be easy to let weeks and months go by without checking on your finances. Keeping a closer eye on things can help you catch any money concerns early and do something before they escalate.

7. Farm out your financial management

Like many business owners, you’re probably exceptional at what you do. However, money management isn’t everyone’s gift. Rather spend your days devising ways to build your business than poring over balance sheets? Consider outsourcing the financial side of your business to a money management professional, such as a bookkeeper or accountant.

8. Make good use of loans

When used wisely, loans can be a game-changer for your business. For example, asset finance can help to fund plant, equipment and vehicle purchases so you can capitalise on new opportunities. Invoice finance can unlock the value in your invoices to help with day-to-day cash flow. A business loan could be your key to expansion.

Finding a finance solution that meets your needs is crucial. Your finance professional can discuss options to suit your business needs and goals.

We offer a range of flexible finance solutions to help businesses access the capital they need to grow. Speak to us today to explore your funding options.

Feel free to contact us for anything that relates to your business finances so we can help with your success.

4 Pickett Drive , Altona North, VIC 3025