𝗜 𝗵𝗼𝗽𝗲 𝘆𝗼𝘂 𝗮𝗿𝗲 𝗽𝗮𝘆𝗶𝗻𝗴 𝘆𝗼𝘂𝗿𝘀𝗲𝗹𝗳 𝗮 𝗱𝗲𝗰𝗲𝗻𝘁 𝘄𝗮𝗴𝗲

🔍 Are you finding that you are not really paying yourself a decent wage as your business income seems to be used to pay your business expenses?

🔍 Is everyone else is getting paid a decent wage except you?

🔍 Are you a small business owner who regularly takes money out of their business to pay for their personal expenses and does not pay themselves a regular wage?

🔍 Or, do you take out what you want when you need it and have your accountant sort it out at the end of the year?

This is not the best way to run your business If you're a company, then you need to realise that this money is not yours.

The company is a separate entity from you and taking out money for yourself is not classified as a wage. Being a company owner/director, you can set yourself up as an employee (which I highly recommend). You will then be eligible for superannuation.

Just because you are the owner/director does not mean you don't have to pay your super and on time. The same superannuation rules may apply to you as your other employees.

If you're a sole trader, your net profit gets taxed at your individual rate and you do not have to pay into your superannuation fund. You can review this with your accountant about contributing to your superannuation fund to benefit you later in life.

So how much do you pay yourself?

Here are four things to consider:

#1 Can you pay yourself the market rate for your industry?

#2 If you do pay yourself, is it enough to cover your personal expenses?

#3 Keep in mind that cash flow can fluctuate, and you may need to adjust your wage accordingly.

#4 If you're not paying yourself a decent wage, review your financials to identify what changes can be made to get you to a better position.

Regardless of whether you're a company owner or a sole trader, it's always a good idea to pay yourself a regular wage.

Download my FREE Recession Proof Your Business Spreadsheet Tool https://go.blnbookkeeping.com.au/optin-recessionproof

𝗦𝘁𝗮𝘆 𝗼𝗻 𝘁𝗼𝗽 𝗼𝗳 𝗺𝗼𝗻𝗲𝘆 𝗰𝗼𝗺𝗶𝗻𝗴 𝗶𝗻𝘁𝗼 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀

With financial pressures at an all-time high, it's crucial to ensure that money owed to you is coming in on time.

Here are 5 things you need to sort out to ensure your cashflow isn't affected in a negative way:

#1 Is there a delay in getting sales invoices out to your customers?

#2 Do you need to make changes to your payment terms?

#3 Review the payment methods, can these be improved/updated?

#4 Keep a close eye on who is late in paying you

#5 Have a process in place to chase up late payers Don't let late payments affect your business! Stay on top of your finances and keep your business running smoothly.

Want more info? Feel free to Contact Us.

Download my FREE Recession Proof Your Business Spreadsheet Tool https://go.blnbookkeeping.com.au/optin-recessionproof

𝗛𝗼𝘄 𝗺𝘂𝗰𝗵 𝗼𝗳 𝗮 𝗿𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗶𝗻 𝘀𝗮𝗹𝗲𝘀 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗰𝗮𝗻 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗮𝗸𝗲?

What would it be like for your business if sales were to drop between 10 to 50%.

??? Can your business stay operational during a down turn?
??? Will your business be able to cope?
??? Will you be able to cope?

Here are 2 simple things you can do to find out…

𝗣𝗥𝗘𝗣𝗔𝗥𝗘 – review your reports to see what a reduction in sales revenue will do to your bottom line

𝗣𝗟𝗔𝗡𝗡𝗜𝗡𝗚 – review your expenses in detail to see what changes you need to make

Download my 𝗙𝗥𝗘𝗘 Recession Proof Your Business Spreadsheet Tool
This spreadsheet provides you with the information you need to start prepping and planning.
https://go.blnbookkeeping.com.au/optin-recessionproof

𝗛𝗼𝘄 𝘁𝗼 𝗰𝗵𝗲𝗰𝗸 𝘁𝗵𝗲 𝗖𝗔𝗦𝗛𝗙𝗟𝗢𝗪 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀

As a small business owner in Australia, obviously knowing that more money coming into the business than going out is essential for success. Keeping on top of BOTH your income and expenses is paramount so you don’t lose track of expenses blowing out or income dropping down.

One effective way to achieve this is by regularly monitoring the CASH FLOW in your business.

Did you know that the Profit & Loss report most likely won’t be giving you the full picture.

Xero has a Cash Summary report that will help.

Here’s how you do this
#1 In Xero, go to Accounting > Reports > Select Cash Summary report
#2 Select the current month
#3 Compare with the previous months in the current financial year
#4 In the “MORE” button – select Gross – to include GST as this will give you the total income and expenses not the net.
#5 Untick the “DECIMALS” box – as we don’t need to worry about those pesky cents right now.
#6 Then, hit the “UPDATE” button.

TIPS
#1 You may prefer to export this report to Excel for easier viewing
#2 Scroll down to the “SUMMARY” at the bottom and review the “NET CASH MOVEMENT” and the “CASH BALANCE”
#3 If the numbers are all positive – that’s a great start
#4 If the numbers are negative – then it’s likely there is more money going out than coming in and you will need to review.

If you would like some help reviewing your cashflow numbers, feel free to get in touch with us.