Running a business today is filled with challenges that go beyond tax deadlines.
While accountants and bookkeepers are essential allies, business leaders need to be supported all year — not just during year-end tax meetings.
Financial strategy, cash flow and budgeting are key to staying resilient and thriving in today’s competitive landscape. Here’s why continuous support from specialists can make all the difference.
Year-Round Accounting Support is Crucial
Many business leaders wait until the end of the financial year to engage their accountants, primarily to determine their tax liability. However, waiting until then limits the opportunity for proactive planning. Business leaders need actionable insights throughout the year to navigate ongoing financial demands and strategic planning. Let’s delve into the top challenges businesses face and how continuous support can address them.
Key Challenges and How Collins Hume Can Help
1. Managing Debtors
Effective debtor management is essential for cash flow. Businesses benefit from guidance on setting up robust debtor systems that align with their revenue cycles and business needs.
2. Understanding Supplier Terms
Before launching a business, it’s wise to negotiate and understand supplier terms. While some suppliers offer credit terms, others may demand cash on delivery, which can strain cash flow. Accountants can assist in understanding these terms and incorporating them into the business’s financial strategy.
3. Preparing for Tax Payments
It’s not uncommon for some businesses to take a cursory view of their tax obligations, often finding themselves caught off guard by tax liabilities they haven't budgeted for. Planning for these payments through regular cash flow forecasts can help avoid financial stress.
4. Building Budgets and Cash Flow Forecasts
A strong financial plan includes budgets and cash flow forecasts — essentially the “Financial Interpretation of the Business Plan.” These tools can predict potential financial bottlenecks, enabling businesses to take pre-emptive action.
Utilising a Year-Round Business Enhancement System to Optimise Management
For ongoing success, business leaders need a reliable framework that keeps financial insights at their fingertips. Here’s a quick breakdown of how to incorporate a structured reporting system:
Regular Reports
A one-page snapshot of sales, outstanding debtors, upcoming payables, cash on hand and gross profit percentage helps businesses stay on top of their daily financial health. This visibility aids in making quick adjustments and staying agile.
Performance Metrics
A weekly report showcasing Key Performance Indicators (KPIs) and profitability metrics for each business segment can highlight emerging issues. Addressing these weekly prevents minor issues from snowballing into major problems.
Financial Analysis
Monthly reports provide a comprehensive overview, including KPIs, business metrics and budget comparisons. These summaries enable a deeper understanding of the business’s financial standing and highlight areas for improvement before the year-end.
The Bottom Line
By adopting a year-round approach to accounting and financial management, build resilience and stay prepared for whatever comes your way. Collins Hume are more than tax accountants — we’re strategic partners who help businesses forecast cash flow, navigate supplier terms and even have a specialist team of bookkeepers to manage debtor accounts. For business owners and managers, embracing continuous financial support isn’t just beneficial, it’s essential for long-term success.
Collins Hume can help you take the first step toward a stronger, more resilient business with Strategy360. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how we can help you achieve a better performing business and lifestyle.
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