Gunson McLean Ltd

Business Basics: MYOB’s 10 tips to improve cashflow

Oct 27, 2021

You can run a profitable business, but unless you have cashflow under control the odds are against you. Here are some simple accounting tips to get it right.


According to Dun and Bradstreet, 90 percent of small business failures are caused by poor cashflow management.


As the world is undergoing challenging times, it’s never been more crucial to be on top of cashflow and business performance.


The MYOB Business Monitor, which surveys local business owners, regularly finds cashflow listed as a chief concern or cause of stress for around a third of respondents.


Want to make sure you’re not just another statistic? Here are ten tips to set you on the course for improved cashflow.


1. Invest in a reputable online accounting package

With a reputable online accounting package, you’ll be on your way to better manage your cashflow from the outset.


You’ll have a handle on your accounting information and will can make more informed decisions around your finances.


MYOB online accounting will provide just that.


You’ll be able to automate your invoicing to your clients and set the payment terms that suit your business.


You can even see when your clients receive, open and pay their invoices. And, you can email regular statements as reminders as well.


As a result, you’ll spend less time on debtor management and get paid faster.


2. Debtor management in a mobile world

With your accounting software is in tow, you can better manage your debtors and cashflow with the use of mobile invoicing features in your accounting software.


There’s no reason why you can’t be creating an invoice on your phone or tablet before you’ve even left a client consultation or provided a service.


You can also process credit card or EFTPOS payments on the spot whilst your accounting software is automatically updated to save you time.


3. Creditor management

On the other side of the equation, businesses should manage the timing of payments of creditors too.


If you’re paying suppliers too quickly while clients drag out paying your invoices, then you will put your business under cashflow pressure.


That’s not to say you need to withhold timely payment of creditors, but rather keeping a closer eye on how you spend your business’s money.


With online accounting software, not only can you receive and pay bills, these days you can even capture and upload physical receipts via a mobile phone app — all of which allows you to get a much clearer idea of what you’re spending and what you owe.


4. Prepare a cashflow forecast

A cashflow forecast is a deeper dive into your business’s incoming and outgoing funds over a particular time frame.


It will help you plan for those looming bills and other planned expenditure and plan for the timing of the outflows so that don’t overspend when cash is tight, and you stay in business.


For example, a lot of businesses will go out and buy a company car when they’re flush with cash – without taking into account coming lean times.


Cashflow forecasts show the cash fluctuations caused by such actions.


Software like MYOB allow you to setup a cashflow forecast to help you better navigate performance.


5. Create a budget

Budgets are such an important part of running a successful business.


They’re the road map for your finances.


Budgets are an estimate of how your business will perform in the coming year.


It’s so easy to quickly lose control of your finances without a budget, and they set you on the path of achieving your goals by helping you make smarter decisions around your finances.


At times, you may need to adjust your budget as your business changes as an unexpected bill creeps in.


Budgets can be made easy with the use of your MYOB AccountRight and Essentials.


They’re very easy to set up, use and manage. They also allow you to compare past years and compare actuals too.


By monitoring your cashflow and reviewing your budgets regularly, you should be able to identify any issues early and making plans to avoid any tough times.


6. Review and update cashflow budgets

During challenging times, it is wise to keep your finger on the pulse so you can better manage any impact a crisis or slowdown may have on your business cashflow.


By reviewing and regularly updating your cashflow budgets or forecasts you are better placed to make changes before issues become major problems.


Therefore, using a cashflow tool to help you will make it so much easier to stay on top of your business.


7. Reduce overheads

Business owners should always look for ways to reduce their overheads, so they maintain a healthy financial position.


Savings can be made by reducing marketing and advertising budget, minimising spend on consumables and any other non-essential costs.


Reducing labour costs with minimal disruption to the business is also a good way to preserve cash. Consider reducing contract hours and distributing work to permanent staff (provided it is within the realm of your industry award).


8. Maintain stock levels

Cash is consumed if a business buys too much stock – so by keeping the right amount of stock on the shelves, cash is released to be used in other areas.


It’s better to buy frequently and less, to keep the cash in the business.


There are many additional apps that will help your business to maintain the optimal levels and avoid over ordering.


9. Seek other revenue streams

During times of revue decline it is important to evaluate how you can continue to trade by seeking alternative revenue streams. Pivoting your business can be crucial to your survival.


During the pandemic we saw many businesses pivot and create new revenue streams which helped them survive. By opting for online options and staying current will help you to drive more sales.


10. Go app crazy

Speaking of apps, there are a raft of apps available to complement accounting software such as MYOB.


These apps can automate the way you run your business so that you have more time to make sales.


Products such as EzyCollect (debtor management tool) and Calxa (cashflow and budgeting tool) you are armed with all that is required to keep you on top of it all and run your business more efficiently.

21 Mar, 2024
We’re nearly at the end of the financial year, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products/has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2024 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire In late March/early April, you’ll receive an email from us with an online questionnaire to fill out and submit. If you haven’t received this by the end of April, let us know.
18 Mar, 2024
Did you know that you can email your digital invoices or receipts straight into your MYOB In tray? You no longer need to print a digital invoice or receipt, you can simply forward them into your MYOB In tray and store them there. This saves on printing costs AND storage costs as it reduces the amount of paper you need to store for the next 7 years. The MYOB In tray lets you store documents such as bills and receipts in MYOB. Think of it like an electronic version of a physical in tray. To get your documents into your In Tray, you can simply email them as attachments. Your In tray has a unique email address that allows you to email documents straight to your In tray. It’s easy to find your In tray email address: click ‘In tray’; then click ‘More ways to upload’ and you’ll see Your In tray email address. You can send yourself documents that are PDF, JPG, JPEG, TIFF, TIF, or PNG files only.
14 Mar, 2024
Your business faces an increasingly complex regulatory landscape when it comes to data privacy, consumer protection, and industry-specific compliance requirements. Keeping on top of these compliance requirements is a complex task. Failing to meet your requirements can have serious implications, with non-compliance (whether intentional or accidental) resulting in legal repercussions and possible reputational damage for the company. Taking excellent care of your customer data We live in a digital world, where your business collects huge amounts of data from your customers. This includes contact details, financial information, credit card details, and detailed breakdowns of their spending habits and buying preferences. In an effort to protect this data and preserve customer privacy, there are various data regulations that you must comply with. A sample of these global data privacy laws include: The Privacy Act 2020 in New Zealand The Privacy Act 1988 in Australia The Data Protection Act 2018 in the UK General Data Protection Regulation (GDPR) in the EU If you trade mainly in New Zealand, it’s not too challenging to abide by The Privacy Act. However, if you’re trading overseas, you need to be aware of the data regulations you may need to comply with. Here are five simple steps to make compliance as simple and effective as possible: Work closely with legal advisers Compliance can get complicated if you’re not a legal expert. It’s sensible to seek advice from legal professionals, so you understand the specific compliance obligations for your industry and region. Run regular compliance audits It’s important to conduct regular risk assessments of your in-house data compliance. This helps your organisation comply with all the relevant regulations and industry standards, and stay updated with changes to compliance law.  Protect your customer data Your customers expect you to take good care of their data, both personal and financial. Secure your customer and business data through end-to-end encryption and use of the best data privacy practices. Deliver regular training and keep your employees up to speed Your team needs to know the latest rules around compliance and what’s required of them. This means running frequent compliance training, so there’s a culture of compliance awareness. Use the latest data storage solutions With so much customer data being generated, it’s important to use up-to-date documentation management, and data storage software. This keeps the records and data you need safe, organised, and easy to access.
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