1. Make sure you are maximising your use of Xero
The cloud is the place to be in 2019, has your business gone digital? If you haven’t fully integrated the cloud into your business just yet don’t worry, because we are here to help. The benefits from cloud accounting are endless but here’s just a few: scalable, cost-effective and easy to use, no need for software to clog up your computer and no need to worry about huge initial costs as Xero runs off a monthly subscription.
Not only this, but apps have brought a whole new dimension of utility to the Xero platform. Research from Xero has shown businesses which make use of apps grow net profits 30% faster. Apps enable you to combine a specialised set of services into an app stack that works together to streamline your business. Eliminating so many of the hassles commonly associated with the archaic endless list of computer programs you would use in the past. Goodbye dumb license agreements, goodbye constant update waits, hello more time on your hands.
You can read about some of our favourite apps here
2. Automate your business processes
Automating your business processes reduces manual tasks in processes such as forwarding data, extracting information from databases and much more. A good business integrated app stack will not only eliminate human-caused errors but will save you money.
Faster, cheaper and powerful, these apps will not only identify bottlenecks in your business but will eliminate them too.
3. Review your expenses
Has it been a while since you took a good hard look at your supplier costs or your additional spending? It’s time to get on top of your expenses and cut unnecessary costs out of your life. The first step is to examine your quarterly invoices and see if there are any unwanted patterns arising. Shop around and make sure your current supplier is giving you the best deal you can get.
Review the purpose of what you are spending money on and consider if it’s critical to the success of your business. Think about the renewal fees and whether there are loyalty discounts you can access.
Consider making some payments to decrease your debt, whether it be the company credit card or back payments to suppliers. Making payments ahead of interest coming into the picture is an important policy for ensuring you don’t have unnecessary debt.
4. Forecast your cash flow
A well thought out cash flow forecast is helpful for predicting surpluses and deficits in cash flow. This mean your business can make better decisions, as well as prepare for potential business changes or decisions.
There’s three steps to a cash flow forecast:
- Estimate your likely sales for each week or month
- Estimate when you expect to receive payments
- Estimate your likely costs
After you’ve taken these steps, add an opening bank account balance and the revenue, less expenses for each period to calculate your likely cash position.
Once you’ve taken the necessary steps to create your cash flow forecast, make sure you are updating it throughout the year.
5. Come in for a free consult!
If you want to take your business to the next level this year or have been thinking about taking the next step to become a pro at Xero
GIVE US A CALL!
Contact us on 3367 0852 or mail@raaccountants.com.au