Finstar Financial in South Yarra, Victoria | Credit counselling service

Finstar Financial

Locality: South Yarra, Victoria

Phone: +61 1300 346 782

Address: Level 20, 644 Chapel Street 3083 South Yarra, VIC, Australia

Website: http://www.gapcap.com.au

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25.01.2022 OBJECTIVELY LOOK AT YOUR BUSINESSES FINANCIAL POSITION AND PERFORMANCE. Are you getting the maximum return from your investment? If not, why not? Are your non-business assets generating a maximum return? Is it possible to sell any assets that are not contributing to the financial health of your business? Remember: in tough times, survival is the goal.

24.01.2022 MAKE ANNUAL BUDGET AND FINANCIAL FORECASTING YOUR HABIT. It is very important that you develop an annual budget. No matter what, do not skip it. In order to know that you are on track you need something to measure against, right? Data is king. You can create a simple plan based on your knowledge of market trends to forecast your financial position and plan accordingly.

24.01.2022 CONSTANTLY REVISIT YOUR BUDGET. Your budget will never be static or consistent it will change and evolve along with your business, and you'll need to keep adjusting it based on your growth and profit patterns. Revise your monthly and annual budgets regularly to get a clearer, updated picture of your business finances. Regularly revisiting your budget will help you better control financial decisions because you will know exactly what you can afford to spend versus how much you are projecting to make. Take into account market trends from the previous year to help you determine what this year may look like. Once you have a clear understanding of your business's budgetary needs, you can accurately forecast what can be set aside for an emergency fund or unexpected costs.

24.01.2022 BUDGET HOME EXPENSES. Although they should be differentiated from company funds, personal expenses can still be a vital part of owning a small business. By cutting down on your cost of living, you can compile a cash cushion in case you need it for your business. It's a good financial back-up plan, and maintaining consistent budget habits throughout the various areas of your life will help budgeting come more naturally.

23.01.2022 RUN A LEAN OPERATION, NOT A FLASHY ONE. Fixed costs are things that cannot be avoided once the money has been spent. For example, some businesses decide to buy the building that they operate from even though it will sap their available cash to do so and may require a business loan to complete the transaction. Only later do they hit hard times and really need to pull the money back out that has been sunk into the commercial real estate. Keep costs lean by avoiding as many capi...tal expenditures as possible. Do you need the fastest computers or to upgrade them every two years? Do employees need to travel to branch meetings or can they meet virtually over a group Skype connection instead? Dont wait for times to be tough to start cutting back. That is when it is too late. Always be lean with the expenses so that there is flexibility to tighten the belt further when the economy is not doing so well. See more

23.01.2022 CONTROL STOCK. Efficient stock control ensures you have the right amount of stock available at the right time so that your capital is not tied up unnecessarily. You should put systems in place to keep track of stock levels taking control of this will allow you to free up cash, while also having the right amount of stock available.

22.01.2022 DEFINE AND UNDERSTAND YOUR RISKS. Every business venture has a certain degree of risk involved, and all of those risks have the potential for a financial impact on your company. Small business owners need to consider their long- and short-term risks to accurately plan for their financial future. Understanding the potential risks facing you on a short- and long-term basis is important for all small businesses. Once you've mapped out the threats to productivity, a clearer picture can be built around emergency planning, insurance needs, etc.

22.01.2022 MAINTAIN SEPARATE BUSINESS AND PERSONAL ACCOUNTS. It can be tempting, especially for new business owners, to not bother to keep records separate between business finances and their personal affairs. Whilst this might seem like a simplistic and simple way to handle things, ultimately it can create confusion later. If paying for an outside bookkeeper to run through the numerous personal transactions, it can also be quite costly to process the account statements to isolate what is related only to the business. Keep accounts separate from the start and avoid the problem altogether.

22.01.2022 TACKLE PROBLEMS WHEN THEY ARISE. It is always very stressful facing financial problems as a business, but there is help and advice available to help you tackle them before it gets too much to handle so seek professional advice as soon as possible. There are also some initial steps you can take to minimise the impact such as tackling priority debts first and assessing how you can improve your cashflow management.

20.01.2022 ENSURE CUSTOMERS PAY YOU ON TIME. Businesses can run into major problems because of late customer payments. To reduce the risk of late or non-payment, you should make your credit terms and conditions obvious from the outset. You should also quickly issue invoices that are clear and accurate. Using a computerised credit management system will help you to keep track of customers accounts.

18.01.2022 PLAN FOR BIG EXPENSES. Whether youve been in business for one year or 10, chances are youre ready to forecast the times big expenses come around. Planning in advance for the larger expenses and help reduce the financial blow and ensure your cash flow stays strong even in the tightest months.

17.01.2022 KEEP A TIGHT REIN ON ACCOUNTS RECEIVABLE. Ensure that as the business expands, the accounts receivable doesnt expand too much with it. At the very least, be careful to ensure that the average number of days that invoices are outstanding doesnt grow over time along with expansion. Keep a keen eye on the money that is due to come in and make sure that it does. You dont want any bad debts because companies slow-walked the payment right before they went into receivership. Managing the finances of a business takes discipline, systems and controls, and the desire to manage them well. Keep business separate from personal accounts, and dont be afraid to use plans. You dont have to stick to them but they will help you.

15.01.2022 DONT EXPAND THE STAFFING TOO FAST. Employees are great to have, but they ramp up the costs to the business really fast. There is the salary, the taxes, desk and other furniture, computer, etc. The indirect costs of each employee can actually exceed the salary. Consider outsourcing, either in-county or internationally, in order to avoid many of these associated costs. Pay per task or per hour. Freelancers effectively pay for their own office space, equipment and internet connection, plus they will often cost less than the real cost of the equivalent employee. It is also possible to hire different freelancers for small jobs consisting of a few hours only rather than trying to find one person who can do everything which is an impossible thing to find.

14.01.2022 KEEP AN EMERGENCY FUND. Starting a business may not be immediately profitable, so an emergency fund can pay for everyday expenses in case things take a season or two to blossom. Extra finances will also keep your business away from debt, allowing you to put all your focus toward success.

14.01.2022 LET A BUDGET BE YOUR FINANCIAL ROAD MAP. You are flying in the dark financially if you don't have a budget for all income and expenses. A budget helps you maintain the direction of the business and must be updated frequently. What about a budget for personal expenses as well? Many small business owners do not track personal expenses and as a result they can become an invisible cash drain.

13.01.2022 MANAGING DEBTS EFFECTIVELY. When businesses are run partly using financing to expand, this debt needs to be managed well. Business debt management is something that needs to be properly understood including knowledge of the different finance options available for small businesses and how much the financial solutions will cost.

13.01.2022 DONT TREAT THE BUSINESS LIKE YOUR PERSONAL PIGGY BANK. Whilst it can be tempting to buy a fancy company car or an upgrade to the latest computer hardware, one of the biggest mistakes a young business can make is spending too much in the early years. Overspending beyond the expected numbers from the budget can create a shortfall which business cash flow may be insufficient to handle. Lines of credit may also not be available from the not-so-friendly local bank and all of a sudden the business is in a financial crisis of its own doing. Put yourself on a salary and learn to live on that amount. If the business makes a reasonable amount of profit, consider paying out an end of year dividend to the shareholders to distribute a portion of the profits while reinvesting the rest towards the future growth of the business.

13.01.2022 KEEP YOUR FINANCIAL RECORDS UP TO DATE. Of course, it is easier said than done. Nobody wants to go through accounts payable, receivable, and cash flow of their company after a long day. This is also one of the main reasons why this part of the business, though very important, is often overlooked by many small business owners. There are many automated accounting software systems that will make your work easy. All you have to do is update them on a daily basis. This way you can maintain weekly and monthly records.

13.01.2022 SET ASIDE MONEY FOR TAXES. There are a lot of surprises when you run your own business, but tax season isnt one of them. You know when the money is due, and if youre keeping track of your financial records you know roughly how much it will be. If you set aside money for taxes before the deadline creeps up you wont have to borrow or make any cutbacks to cover it.

12.01.2022 BOOST YOUR SAVINGS PLAN. All small businesses need to have a backup savings plan in the event of a downturn. Take time to consider whether you have enough savings to cover any potential business losses or to protect you when things dont go as planned.

11.01.2022 SAVE ON THE SMALL THINGS. We all know that the small things add up, especially if there are a lot of small things. If you have an employee who can devote some of their time to looking for great deals, make that a regular part of their job duties. If you cant afford to have an employee focus on money saving tricks, do it yourself. Even if you only save a little at first, your savings will add up. Certain companies will offer free shipping or discounts on bulk orders. You can ...save money by purchasing recycled paper or refurbished computers. You can also save money by avoiding costs for things you can do yourself like cleaning your office or delivering something to a client or vendor yourself. There are many other ways you can save money on your small business. Shop around for insurance, use email instead of snail mail when possible, hire interns instead of staff when possible, and be smart about small business taxes.

10.01.2022 PLAN FOR MAJOR EXPENSES. Starting a company can mean a lot of big expenses up front, from computers and office furniture to cars and appliances, depending on your business. Add to that the inevitable expenses such as repairs and maintenance. Plan ahead for these types of expenses by setting aside money now to pay for it later. For example, do you need a generator to keep the lights on in the event of a power outage? Will you need a new computer in a couple of years? How about a larger office space? Consider what you will need not just next week or next month, but over the coming years and budget for it.

09.01.2022 DO NOT MIX. No matter how tempting it is, do not mix your personal finances with your business finances. These include home office deductions, some business meals, utilities and travel expenses. You can take advantage of these, but make sure you do not indulge in excessive deductions, as you can get into trouble.

09.01.2022 DON’T EXPAND THE STAFFING TOO FAST. Employees are great to have, but they ramp up the costs to the business really fast. There is the salary, the taxes, desk and other furniture, computer, etc. The indirect costs of each employee can actually exceed the salary. Consider outsourcing, either in-county or internationally, in order to avoid many of these associated costs. Pay per task or per hour. Freelancers effectively pay for their own office space, equipment and internet connection, plus they will often cost less than the real cost of the equivalent employee. It is also possible to hire different freelancers for small jobs consisting of a few hours only rather than trying to find one person who can do everything which is an impossible thing to find.

09.01.2022 DECLUTTER AND SIMPLIFY. Take time to simplify bill payments, invoice payments and consolidate debts to improve cash flow management and efficiency. Leverage the latest in account-keeping software platforms to streamline processes moving forward.

08.01.2022 PAY ATTENTION TO YOUR SALES CYCLE. Many businesses go through busy and slow periods over the course of the year. If your company has an "off-season," you'll need to account for your expenses during that time. Use your slower periods to think of ways to plan ahead for your next sales boom. There is much to be learned from your sales cycles. Use your downtime to ramp up your marketing efforts while preventing profit generation from screeching to a halt. In order to keep your company thriving and the revenue coming in, you will have to identify how to market to your customers in new and creative ways.

08.01.2022 GET ORGANIZED. Organization is key to tracking your financial situation. It may feel like you're too busy to sit down and make a record of your expenses, but having everything laid out will save you from a lot of stress later on. Forbes suggests dedicating a set time each week to organizing and checking your finances. Whatever method you prefer, make sure you remind yourself to stay on top of things.

07.01.2022 EXAMINE HOW YOUR DEBT IS STRUCTURED. Do you have an imbalance between long- term and short-term debt? Is it possible to increase your long-term debt to pay down your short-term debt? You may be able to increase your monthly cash flow by spreading out your short-term debt over a longer period of time. Be cautious when taking a loan against long-term assets such as your real estate; it's like drawing against your "life" savings account. If you're going to use your long-term equity, make sure the need is critical to your business.

07.01.2022 CLEAR BAD DEBTS. The last thing you want is to roll over bad debts or outstanding bills to the new year. Making your debt repayment strategies a top priority can ensure you pay off any outstanding business payments more quickly and efficiently.

06.01.2022 REMEMBER THAT TIME IS MONEY, TOO. One of the biggest mistakes small businesses make is forgetting to incorporate their time into a budget plan. Time is money, especially when working with people who are paid for their time. Timing underestimation directly increases costs. The biggest underestimation is allotting time for client feedback. It is a Herculean effort sometimes to meet a deadline with lots of people focused on a single task. Then, the client needs to give feedback... for us to proceed. If the client is distracted with other issues, feedback planned for a three-day turnaround, can become a week or longer. Not only do you start to lose time to the delivery schedule, your team also loses momentum as their collective thought shifts focus to another project. Treat your time like your money, and set external deadlines later than when you think the project will actually be done.

06.01.2022 INVEST IN THE RIGHT RESOURCES FROM THE START. When you start a business, you want to build a firm foundation for success, starting with resources including technology, marketing and the right employees. In a survey, about 15% of the small-business owners said they didnt invest enough in technology when they began their businesses. Over one-third of respondents said they didnt do enough marketing and promotion from the start. Hiring the right person for the job is also critical, even if that person costs more to employ than those closest to you. About a quarter of respondents said they wished they had hired outside of their network of family and friends.

05.01.2022 IN TOUGH TIMES CASH IS KING. Carefully examine every capital purchase that will require additional debt. Ask yourself if the expenditure will generate the cash flow needed to pay for itself. If the new item can't create enough new cash to pay for itself over a reasonable period of time, defer the purchase.

04.01.2022 REVISE YOUR BOOKKEEPING SYSTEM. Many small businesses are often too time poor to think about good bookkeeping, but with the latest in automated cloud-based systems available, it has never been easier to get those accounting books more organised.

01.01.2022 TRACK YOUR EXPENSES. Whether you have a degree in English or accounting, business expenses can become overwhelming. Properly tracking expenses will allow you to maximize your write-offs at tax time, helping to ensure you capture all of the benefits of running your own business. Paying for expenses by credit card is a great way to track business expenses. Not only do you get a receipt, but also your monthly statement is a second reference for what youve paid out each month. B...usiness owners should also consider using a separate credit card for business, to separate work expenses from personal items. To help organize and keep track of your business expenses, consider using computer spreadsheets or online software. Also, when you track your expenses, be sure to organize them into different categories such as food, office supplies and transportation. That will make it easier to sort through at tax time.

01.01.2022 STAY ORGANIZED BY SETTING ASIDE A REGULAR TIME TO REVIEW YOUR NUMBERS EVERY WEEK. Too many small business owners think about their finances only when its time to pay taxes. The problem is that important decision points occur organically, not just around tax season. One solution is to set aside time each and every week to review your finances. It doesnt matter if youre simply checking your current cash flow situation or reviewing your performance relative to a peer group. The important thing is that youre making financial management part of your routine. While it may seem tedious at first, the behavior will pay off in the long run.

01.01.2022 SPEED UP CASH FLOW. Every entrepreneur knows productivity is important. But how many focus on the productivity of their cash? Faster cash flow is a big competitive advantage. Consider offering customers creative terms to speed up cash flow, such as a 2% discount to those who pay within 10 days. Getting cash quicker can mean more peace of mind and a reduced line of credit.

01.01.2022 A PLACE FOR EVERYTHING AND EVERYTHING IN ITS PLACE. Do you know where all your invoices, credit notes, bank statements and other financial documents are located? Are any missing? Lost or incomplete records can create a major problem for an organization. Computerized records ensure that should the business premises suffer a fire overnight, the accounting records wont be lost if there are computer backups off-site or accounting is conducted online in the cloud.

01.01.2022 SEPARATE PERSONAL FROM BUSINESS. It can be tempting to mix business with pleasure when you use the same credit card for both, or have one card handy over the other. However, it's best to keep types of expenses separate. This minimizes confusion during tax time and makes tracking your business budget much easier. A separate business checking account and credit card are excellent for drawing a distinct line between personal and business.