It is important to review your budget, here is a list of a few starting points to think about when drafting or reviewing your budget, take a look.

• Look at your business plan (the document that lets you know which way your busines is going)
• What will change in your income next year? Are you planning to increase it? or will external factors (such as poor weather seasons) cause to decrease it?
• Do you have marketing plans that you expect will change your income?
• If you income changes, what will the effect be on your COGS (cost of goods sold)? Are your input costs changing?
• What effect will changing your income have on your salary and wages costs?
• Will you be purchasing any assets (equipment) in the next few years?
• Will you need finance (borrow money to grow the business)?
• If your budget was based on last years actuals results, where there any one-off events that were included in last years numbers that should not be taken into accuont this year?
• Is there anything happenning in the economy (such as the European crisis or a rising $A) that may affect your income or costs?
• Is there any legislation expected that will change your revenue or costs? (such as any government grants being cancelled, eg Solar Panel Rebate)
• Have you though of what your competitors are doing that may affect your business? 
• Ask us if you need help, its easy

Your budget is your guide to your business for the future - if you dont have one you should do one and if you have one make sure its current and relative to your busines today.  

I saw this photo (above) and I thought to myself, look at that team: look at how it operates, look at how each person plays their part ... look at their commitment to being number one.

This got me thinking. These guys are in business, too. So what makes their attitude, behaviour and drive for success different to mine? How does the success of a sporting team differ from the success of a business?

I suggested to a few of my clients that they look at their business as if it were an F1 (formula one) team, to challenge the current perspective of their day-to-day business. What lessons could they take, in a sentence, from pit lane to Pitt Street?

The attitude, structure, form, preparation and practice that an F1 team goes through each year to win is extraordinary. By choosing to emulate that team mindset in their operation, I think there is a lot of scope to impact the efficiency and responsiveness of the business.

The message is simple. Be open to challenge your view on your business every day.

I am interested to see if anyone else is willing to view their business through a different lens. Please let me know in the comments what tools you employ to gain a different perspective on your operation.

Have you got great profit and no cash in the bank? Are you finding it hard to pay all your liabilities on time? Or are you sacrificing your take-home pay because there is not enough left in the bank each week?

Have you ever wondered why?

If any of these scenarios sound familiar, your cashflow needs some attention to get it back on track.

Here are our top 10 questions to ask yourself, regarding cashflow in your business.

1. Is your price right? Do you need to put your price up?
   Have you considered what would happen if you increased your price by 1%? Do you know what the effect would be if you did this?
   
   
2. Is your Gross Profit too low?
   Are you paying the right amount to your suppliers, and are you producing your product efficiently?
   
   
3. Are your other costs 'blowing out'? Or are you not really sure what you're spending your money on?
   Check your budgets and see where the discrepancies are. If you don’t have budgets, consider putting some in place – they can guide you on how much you should be spending in certain areas of your business.
   
   
4. Are your customers paying you on time?
   Have you implemented a debtors policy for your business? How do you issue invoices, and what strategy do you use to collect your customer payments on time? 
   
   
5. Are you carrying too much stock, or not moving it quick on enough?
   Do you monitor your inventory (stock) often, and do you have obselete stock sitting your floor? Do you know what this is costing you, and what impact it has on your cashflow? 
   
   
6. Are you paying your bills when you are supposed to? Are you paying the right amount?
   Are you checking what's being paid; how much and when? Do you have procedures in place to make sure your staff are paying the right amount out, and not paying suppliers before their normal credit terms?
   
   
7. Are you utilising the business assets effectively?
   Are the assets held by you and your business being used effectively? If not, should some of them be dumped? Do you need advice on what assets to sell or what assets to buy?
   
   
8. Can you pay your tax bills on time?
   Are you minimising your tax bill – legally and effectively? Are you spending your tax liabilities to fund cashflow in your business, then finding it hard to pay these when you are suppose to?
   
   
9. Are the owners taking out the correct amount for themselves?
   How much should you be getting paid without it affecting your businesses health?
   
   
10. Have you got a 12-24 month forecast?
    Do you know what income is coming in – and going out – over the next 12-24 months? If not, why not?

A good accountant is there to assist in managing and growing your cash flow, so you can focus on other areas of your business. If you're unsure of the answer to any of these questions, give us a call.