How to Avoid Common Mistakes Business Owners make!

It’s no shock that business is difficult.

While there are around 2.1 million small businesses in Australia, an estimated 60 percent of SME go bust within their first three years…⁠ ⁠

Here’s some quick tips on how to avoid making financial mistakes from the team at ABA Tax! ⁠

CASH FLOW⁠

🔹Make sure you’re getting paid. Have a payment process in place to track and record cash flow.⁠

🔹Take note of when you pay suppliers. Focus on paying on time however this doesn’t mean you can’t pay early.⁠

🔹Budgeting!!! Keep track of all expenses and income streams. Try to keep a small portion of cash spare for any unexpected costs.⁠ ⁠

TAX AND REGULATION⁠

🔹 Stay up-to-date with tax news and info by subscribing to local accounting firm newsletters or government official emails.⁠

🔹 Utilise online accounting software like Xero to keep your records and bookkeeping up-to-date as well.⁠ ⁠

RUNNING COSTS⁠

🔹 Shop around for expenses like electricity, internet and insurances etc. You’ll be surprised how good some deals are. ⁠

🔹 Organise discounts from suppliers on early payments or bulk orders.⁠

🔹 Internal operations and procedures. Are staff working as effective as they can be. Can systems or processes be automated or updated?⁠

Making sure your business or company is properly organised and operates effectively (in all aspects) is one of the most important points to tick off in the early stages.

Have you checked off these tips with your business?

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