1. Manage Your Cash Flow
Cash flow is the pulse of your business, so of course you’ll be monitoring it closely and actively looking for ways to improve it.
•Identify running costs and how much money you’ll need to stay in business all year. Factor in seasonality, look for weaknesses in cash flow and pay invoices on time.
• Boost your cash flow by reviewing your business’ key cash flow measures like your marginal cash flow (i.e. cash flow from each additional dollar of sales) and cash flow cycle (i.e. time to receive cash from sales).
2. Analyze How Your Business Is Performing
Build yourself a business dashboard. Strategic operation requires quick and up-to-date access to vital business stats like sales, profits, cash flow and more.
• Make sure you know your break-even point. You need determine the level of business activity required to achieve your desired financial return.
3. Keep On Top Of Tax
Good record keeping is important in every business — as is knowing the tax you need to pay for your employees and understanding what deductions or concessions you may be able to claim.
• Step 1: Register your businessand set up good accounting habits.
• Step 2: Consult a tax professional, who can help you determine what hard copy and electronic business records you’ll need to keep on file and for how long (generally five years).
• Step 3: Be sure to ask your accountant about potential tax deductions (for related expenses incurred running your business) and tax concessions. Eligibility for concessions could apply to your income tax, capital gains tax, and fringe benefits.