Business Questions Frequently Asked

Improving cash flow starts with keeping a close eye on where your money is going and when it’s coming in. We work with our clients monthly to ensure that they negotiate better payment terms with their suppliers, review the Accounts Receivables due and cut out any unnecessary expenses. We also ensure that our clients know and are made aware of any liabilities which coming due over the next couple of months, so they have no surprises and have the necessary amount of cash needed. This includes knowing when their Income Tax, GST and PAWGW are due with the ATO.

For small businesses in Australia, Xero is an excellent choice. It’s user-friendly, cloud-based, and offers a wide range of features that can help you manage your finances with ease. Xero is especially great for invoicing, expense tracking, payroll, and financial reporting. It also integrates with many other business tools, making it a versatile solution. We exclusively use Xero because it’s reliable, efficient, and tailored to meet the needs of small businesses like yours. It is important to note, that we only work with clients who use Xero. If you are not currently using Xero, that’s ok, however, for us to work with you, you will need to convert over to the Xero platform.

Start by reviewing all your expenses to see where you can cut back. Negotiate better deals with suppliers, reduce energy usage, and consider outsourcing non-core activities. Streamlining operations and using technology can also lead to savings. For example, switching to cloud-based services or automating tasks can reduce overhead. We can help identify areas for cost savings without affecting the quality of your products or services.

Our Conqa bookkeeping service is at an accounting standard. Most freelance bookkeepers have a very limited knowledge base on how the bookkeeping works in conjunction with the accounting, tax planning and cash flow and budgeting work that we do. Having this undertaken in house by Conqa provides a better result for your business as we are engaged at every stage of the process.

A lot of skill is needed to create a budget that is beneficial to a small business and its owner. Most business owners who attempt to create a budget make the mistake of simply inputting figures that they desire rather than figures that are actually based on something realistic and factual. For example, if a business desires to increase their sales by 50% in 12 months, it is very easy to simply input this into your budget. However, this is not the right approach. Before you can commit to this 50% increase, the owner needs to ensure that this is based on reality. The budget essentially asks the question, “how are we going to achieve this additional 50% sales increase in 12 months?”. Therefore, budgets always come down to business actions, planning, internal processes and patience. This is what we specialise in when working with our clients as we help them design their budget. The Budget needs to be meaningful.

Tax laws change frequently, so it’s important to stay informed. If you are a Conqa business client, you will receive a monthly e-newsletter detailing all of the most recent tax changes with some commentary form us. If you have any questions or concerns about anything that affects you and your business, you can always call us and discuss.

Working with accountants like us at Conqa, we can see all of your business debts on your Balance Sheet. The Balance Sheet is the least understood Financial Statement for business owners. If your Financial Statements are being monitored and your bookkeeping is being done correctly, the Balance Sheet lists all of your business’ debts. We keep all of our clients finance schedules on file so we can track the interest rates and the weekly / monthly payments. This allows us to advise our clients to consider paying off high-interest debt first while making minimum payments on others. Consider refinancing or consolidating debt to secure lower interest rates. Reducing unnecessary expenses and increasing revenue can also help free up cash to pay down debt faster. We help you create a business debt reduction plan tailored to your financial situation. However, please note; This does not include a personal debt plan. For this, you will need to see your Financial Planner.

Scaling your business requires careful planning and a solid understanding of your financial position. Assess whether you have the resources to support growth, including cash flow, staffing, and infrastructure. Consider scaling incrementally to manage risk. Diversifying revenue streams and securing additional funding, if necessary, can also help. We assist with creating financial projections, securing financing, and identifying potential risks to ensure sustainable growth.

Staying compliant involves keeping up with regulations specific to your industry, including tax laws, workplace safety standards, and consumer protection laws. Regularly review and update your business policies and procedures to align with legal requirements. Keep accurate records and ensure that all necessary licenses and permits are up to date. Consulting with an accountant or legal advisor can help you navigate complex regulations and avoid penalties.

Choose a payroll system that fits your business size and complexity. Options include payroll software, outsourcing to a payroll service provider, or handling it in-house with the help of an accountant. Ensure compliance with superannuation obligations, PAYG withholding, and other employment regulations. Automating payroll processes can save time and reduce errors. We can help you set up and maintain an efficient payroll system that meets all legal requirements.

As an employer, you must contribute to your employees’ superannuation at the current rate (currently 11.5% of their ordinary time earnings as at 1^st July 2024). Contributions must be made at least quarterly and paid into a compliant super fund by the due date. Provide employees with a choice of super fund and keep records of all contributions. Failure to meet your obligations can result in penalties. We can ensure your superannuation payments are made correctly and on time.

Tax minimization strategies include taking full advantage of allowable deductions, structuring your business tax-efficiently, and timing your income and expenses to optimize your tax position. Planning ahead and working with us can help you implement strategies that align with your business goals while remaining compliant with tax laws. Each year, we create a customised Income Tax Projection between April and late June to ensure that that you are not paying any more tax than you need to.

Review key financial statements like your balance sheet, income statement, and cash flow statement. Look at profitability, liquidity, and solvency ratios to understand how well your business is performing. Regularly monitor your business’s financial metrics and compare them to industry benchmarks. We can help you interpret these figures and provide advice on improving your business’s financial health.