Managing cashflow in any small business can either make or break a business. 

I so often see great small business end up in a mountain of debt all because they didn't manage their cashflow properly. 

These business owners have the best of intentions and no matter how hard they try, they get themselves into a financial hole that they can't seem to get themselves out of. 

As their business advisor, seeing the worry and stress these business owners carry is heart breaking to watch. I know just how hard they've worked and continue to work but because they've never been taught how to manage the money in their business, things seem to go pear shaped quickly. 

Being able to manage your businesses cashflow is something that can be learnt - but just like anything, the thought of learning something new can be pretty scary. Add to this the shame that's often felt because they don't understand the money side of their business, a lot of business owners would rather stick their head in the sand instead of reaching out for help. 

The best thing bit of advice I give all of my clients is to own it. As soon as things start to get tricky, reach out for help. Acknowledging that you're struggling to understand your money is the first step. This is a huge step so don't underestimate just how relieved you'll feel when you do. 

These are my top 3 red hot tips to manage the cashflow of your business. 

💰Separate Everything!

Keep your business and personal accounts separate. When I get records from a business that have just one bank account, I cringe. I know that it's going to cost the client way more than it should for me to separate things out. Plus it's so hard to keep track of what's business and what's personal. So first things first. Get your business a few accounts - at a minimum I'd suggest 3 accounts. You may want more, though here are the 3 I suggest

            A GST Account 

            A Superannuation Account (if you employ staff)

            A Tax Account

💰Keep Good Records

Receipts fade and if you're anything like me, you end up with a pile of paperwork in your office and then you can't find things when you need them. There are accounting programs now that allow you to take a photo of your receipt and immediately upload them. This is great because you can go totally paperless and throw out your receipt plus whenever you need it, your receipt is right there! 

The Australian Tax Office (ATO) also requires small businesses to keep their receipts for 5 years - this can end up being a lot of paper so finding an electronic solution is the way to go. I love Xero because it's super easy to use (it feels very non accountant like) and keeps everything safe. 

You also don't want to miss out on any deductions because who wants to pay more tax than they need to! Keep your receipts, file them and sleep easy. 

💰Know Your Dates 

We've been paying GST in Australia now for a long time, though you'd be surprised just how many businesses don't reconcile their accounts on time. The BAS is due for lodgement and payment at the same time every quarter. The payment of super is due at the same time every quarter. Income tax is due at the same time every year. So know when things are due!

When you know the how often you need to make payments for GST, tax, super etc, you can then budget for them. There shouldn't be any surprises when the due dates roll around and if you've been putting some money away each week, you'll have enough to cover any debt. 

Remember that you as the small business owner is just the collector - this money isn't yours to keep so don't spend it. 

These tips may seem simple though there are so many business owners who don't use them. By implementing these 3 easy and simple tips, you business cashflow will improve. You'll sleep easier not worrying about where you're going to find the spare money. 

If you're struggling to manage the cashflow of your small business, book in for a Financial Wellness Check Up at www.erindavis.com.au/wellness so I can help you to sleep easy too.