Business Basics: MYOB’s 10 tips to improve cashflow

27 October 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.

Payroll Doesn’t Have to Be a Headache: How to Simplify & Stay Compliant

1 October 2025
Managing payroll can sometimes feel like navigating a maze; complex regulations, tight deadlines, and countless calculations can easily overwhelm business owners. However, with the right strategies and tools, payroll can be streamlined into a smooth and efficient process. Here’s how you can simplify your payroll process while ensuring full compliance. Embrace Technology Choose the Right Payroll Software Investing in good payroll software is one of the best steps you can take. Look for features that automate calculations, tax submissions, and generate detailed reports. Many software options now offer cloud-based solutions, providing the flexibility to manage payroll anytime and anywhere. Stay Informed on Compliance Know the Laws It’s crucial to stay updated on federal, state, and local labor laws, as these often change. Non-compliance can lead to penalties, so consider subscribing to industry newsletters or updates from trusted legal resources. Record Keeping Maintain meticulous records of employee hours, wages, and payroll taxes. Proper documentation safeguards you from legal troubles and helps resolve any discrepancies promptly. Set a Consistent Payroll Schedule Consistency is key in payroll processing. Choose a payroll frequency that suits your business - whether it’s weekly, bi-weekly, or monthly - and stick to it. This creates predictability for both you and your employees, allowing better financial planning and cash flow management. Automate Tax Calculations Manual tax calculations are prone to errors. Automating tax withholdings through your payroll software ensures accuracy and compliance with the latest tax rates and contributions. This reduces the likelihood of costly mistakes and late penalties. Regularly Audit Your Payroll Process Conduct internal audits periodically to identify errors and inefficiencies in your payroll process. This proactive approach helps catch and remedy issues before they escalate, ensuring your business remains compliant and efficient. Consider Outsourcing  If payroll complexities feel overwhelming, consider outsourcing. This allows you to focus on your core business activities while ensuring that payroll is handled by experts who stay abreast of ever-changing regulations and compliance requirements. If payroll continues to be a challenge, our team of experienced accountants is here to help. We offer comprehensive payroll solutions tailored to fit the needs of small and medium businesses, ensuring compliance and efficiency at every step. Contact us today to learn more about how we can support your payroll processing needs.

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24 September 2025
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What the IRD Expects from You as an Employer

17 September 2025
As an employer, there are several obligations and expectations set by the Inland Revenue Department (IRD) that you must adhere to. Understanding these requirements is essential for maintaining compliance and avoiding any potential penalties. Let's take a closer look at what the IRD expects from you as an employer. Register as an Employer Before you hire your first employee, you are required to register as an employer with the IRD. This is a crucial first step in ensuring that you can meet all tax and payroll obligations. Accurate Record Keeping The IRD requires you to keep accurate and detailed records of all employment-related transactions. This includes: Employee personal details Wages and salary paid Payroll dates and methods PAYE deductions and remittances Details of benefits or allowances provided to employees Maintaining proper records helps ensure that you are reporting and remitting the correct amounts to the IRD. Deduct PAYE Tax You are responsible for deducting PAYE (Pay As You Earn) tax from your employees' pay. This involves calculating the correct amount of PAYE and ensuring it is deducted from each employee's salary or wages before their net pay is provided. Pay Employer Contributions In addition to PAYE, you may also be responsible for contributing to your employees' social security and retirement benefits, depending on the country you operate in. These contributions are typically paid in conjunction with PAYE tax. Issue Statements and Forms At the end of the tax year or upon employment termination, you should provide each employee with a statement showing their total earnings and PAYE deductions. Additionally, filing the appropriate end-of-year PAYE schedules with the IRD is required. File Employer Returns Employers are required to file regular returns with the IRD, which could be monthly, quarterly, or annually, depending on specific regulations. These returns should accurately report all payroll activities, including PAYE deductions. Handle Tax Codes and Changes It's crucial to apply the correct tax codes for each employee's circumstances. Any changes in employment status or tax code must be updated promptly to ensure accurate tax withholdings. Comply with Audit Requests The IRD may audit your business to ensure compliance with employer obligations. As such, being prepared to provide all requested information and records in a timely manner is vital. Adhering to these expectations from the IRD is not just about compliance; it's about fostering a transparent and trustworthy relationship with your employees and the tax authorities. If you need assistance with understanding or managing your obligations as an employer, consider reaching out to a professional accountant. Our team is here to help you navigate these responsibilities seamlessly, ensuring peace of mind and allowing you to focus on growing your business. Feel free to contact us for further information or assistance.
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