Small businesses are the engine that motor the Australian economy. According to a report from the Treasury, small businesses account for roughly half of all private sector industry employment. The other half are corporations with expansive networks and hundreds and thousands of employees. So how do you grow your small business and keep it healthy? Here are a few financial strategies to help.
Keep Your Budgets in Check
Managing and setting a budget as well as bookkeeping, might seem like a complicated and time-consuming task but it’s a crucial one. When you have a budget that provides you with a roadmap outlining everything from where you’re expecting your revenue to come from all the way through to detailed spend by month on overheads, payroll and hidden costs, then you know that you are taking charge and will expect fewer surprises. You can then have a healthy monthly conversation and make informed decisions ahead of time to ensure that you are investing in the right areas and growing your business according to a well-documented plan.
Track KPIs
KPIs show how well your business is going. They are essentially goals that you set for yourself and you want to ensure that you’re hitting all of these key metrics. Every business is different but you need a set of meaningful KPIs to hold yourself and the business to account. Strive to earn more or spend less, or invest in new opportunities with your business. Whatever the case, hold yourself accountable.
Manage Your Taxes
Tax law is very complex but if you fail to manage your taxes, track deductions over the year, or don’t complete your taxes correctly, you’re going to get burned.
Next Steps
Successful businesses that want to grow, consult with professionals to handle their accounting needs from bookkeeping and taxes to financial processes like budgeting and tracking KPI’s. You might prefer to do things yourself but when it comes time to manage the numbers and lodge your tax returns, you’ll be happy you hired the professionals.
