Increase profits by increasing your financial knowledge
You get your accountant to do the books and the tax return each year, right? With some relatively simple techniques, you could be the one telling him/her how you’ve improved the profitability of the business. It’s not only empowering to educate yourself financially, it’s part of your responsibility as a business owner.
Work financial targets, measuring and adjustments into a regular schedule
The best way to approach financial analysis is to be methodical and consistent. Rather than wait until tax time, BAS time, reporting time or auditing time – make your own time where you address finances so they are always ready for documentation and presentation.
The better your financial records and documentation the more attractive your business is to a potential buyer.
It’s the one area that business owners often neglect when selling a business. They assume the strength of the business will speak for itself. This couldn’t be further from the truth.
A prospective buyer will look at your financials first and foremost and the less work they have to do to understand the exact financial position of your business the more likely they will be to buy.
Contact Rinnovate to get ahead financially and improve your knowledge in the following areas:
- Financing strategies
- Using financial ratios to measure your performance
- Product and customer profitability analysis
- Provision of monthly reporting/measurement against targets
- Cost reduction strategies
- Cashflow management strategies
- Development of Key Performance Indicators (KPIs)
How healthy is your cashflow?
Cashflow is one of the hardest things to get under control. The best run and most valuable businesses include the peaks and troughs of cashflow in their projections. If you are having trouble with any of the following, get in touch for a cashflow analysis that will make sure you stay afloat:
- Not paying yourself a regular salary
- Having trouble keeping up with wages
- Falling behind in payments to suppliers
- Having difficulty getting invoices paid
- In arrears with the ATO