This tax season has seen many of our clients expressing concern about cashflow. Many small business owners are finding the cost of doing business more expensive and cashflow is a key concern. There are some key areas to focus on if you are finding cashflow challenging.
- Budgeting
- Where is your cash going and what can change to help manage this?
- Taxes
- How can you legally minimise your tax liability? What can you do to keep cash in your pocket?
- Investing
- Are your investments working and is there an opportunity cost by not investing elsewhere?
- Debt Management
- What are your current debts and how much are those debts costing? Can you find finance cheaper elsewhere?
To help you answer these questions, in the table below we’ve captured the main considerations under each key focus area. We suggest selecting one area at a time, so you don’t get overwhelmed, and working on it until you feel confident before moving onto the next area.
| Budgeting | Taxes | Investing | Debt Management | |
| 1 | Review income & expenses | Gather documents | Review financial goals | List all debts |
| 2 | Categorise expenses | Understand the tax brackets | Assess risk tolerance | Prioritise debts |
| 3 | Set budget goals | Identify deductions & income | Evaluate current investments | Create a repayment plan |
| 4 | Build a budget | Estimate any tax liabilities | Research new opportunities | Review interest rates |
| 5 | Automate your savings | Plan for quarterly payments | Diversify portfolio | Cut unnecessary expenses |
| 6 | Track & adjust | Review superannuation contributions | Implement an investment plan | Automate payments |
| 7 | Evaluate & reflect | Tax return lodgement strategy | Review & adjust | Celebrate progress & reassess |
It does take time and patience but by focusing on these key categories, your cashflow can be improved. For more support, visit our Small Business Portal and download Budgeting & Forecasting for small business. Or contact our team, we are here to help you.
We Can Help
If you need guidance in managing your cashflow or support in focusing on these key areas for improvement, please contact our team. We will get you sorted.