As the new financial year gets underway, now is the perfect time to look at how you can run your business more effectively.
While you may think you’re running smoothly, there will always be something you could be doing better and ways you could be saving money.
Here are five top tips from Rich Walker, director of accounting solution Intuit, to help you improve:
Your business may be eligible for grants and other types of assistance. You can find out what you’re eligible for on the Australian Government’s business website.
It’s also worthwhile reaching out to the business community to find a mentor. Your local Chamber of Commerce and Industry can help, as well as Business Enterprise Centres Australia.
Evaluate your accountant
Determine whether or not your business requires specialist tax accounting. If so, finding an accountant with experience in that area can save you money.
Consider using an accountant that uses cloud-based software. This means your accountant can access your files around the clock, giving you the benefit of making business decisions based on real-time data.
Discuss fees upfront so you know what you’re in for. Remember that if you have the flexibility to shop around if you’re going for an accountant that’s based in the cloud.
Decrease your debtor days
Diane Lucas, owner of Direct Management, believes the new financial year is a great time to re-evaluate relationships with suppliers, and your terms of agreement. If you’re always chasing down payments, here are some of her tips:
Sending out statements is a must for all customers.
Follow up with a phone call to discuss payment.
Follow up on your follow up, especially if a promise is made and not adhered to.
Affiliate yourself with a professional body so you can add some ‘grunt’ to your collection letters. For example, show you’re supported by the National Revenue Corporation (NRC), which provides support in the area of accounts receivables management with the purpose of ensuring accounts are paid on time and in accordance with the agreed terms of trade.
Set out your expectations in your contract terms so that you can act upon it if the debtor days are exceeded. However, remember that when you work with bigger companies, they’ll often pay on their own terms and you may have to prepare to put up with it.
Invest in the cloud
Working in the cloud means you can work anywhere, collaborate with business partners in different offices wherever they may be around the world, and gives you greater flexibility.
Social media is key in business today, allowing you to communicate directly with your customers. However, it’s important to consider your social media strategy carefully before diving right in.