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January 27, 2022

Brighton Accountants

Brighton (3186) accountants are here to help based in Ormond!

Gartly Advisory are Accountants based in Ormond, Melbourne. While we are not based in Brighton 3186, many of our clients are!

Accountants that help Brighton Small business

You need a professional Chartered Accountants group that will offer you a professional quality service to assist you and your business to grow. Our clients are based all around Melbourne and we have a great selection of clients based in Brighton. Also, we have clients located in the nearby Bayside suburbs.

Clients love our service because the team at Gartly Advisory ensures that we provide advice and knowledge that small business clients can act on!

Ormond Accountants that provide exceptional service to businesses in Brighton

Join us for a coffee to see what we can provide you

It’s true we are not based in Bay Street or in Brighton but we are not far away. Our clients love the easy parking and hot coffee. Gartly Advisory has a team of a number of professionals and the firm has been in operation almost 20 years helping many small businesses.

Geoff loves swimming and loves going down to Brighton Bathes for a quick dip in summer. Talk to us about your small business needs and see if we can help you on your business journey.

Cashflow stratgey

A smart Cashflow Strategy will generate better business profits!

For many businesses, cash flow is an issue that holds the business back. But, unfortunately, there never seems like there is never enough cash when you need it.

With Christmas around the corner, it’s time to plan. Naturally, a business owner will not want to reduce their cash balance unnecessarily at this time. But, on the other hand, an increase in cash into the business can make life easier and lower the cost of financing. Moreover, squiring the money now can pay dividends in the post-festive month of January.

How to reduce cashflow leaks

 To help you preserve or increase your money, here are our five cash management leaks to avoid.

1. Bloated Bank Fees

Some banks are more business-friendly than others.  Therefore, we recommend you assess the fees you are currently charged and aim to eliminate any unnecessary services.

  •  Is it practical to maintain a   cash balance to avoid monthly fees? Do you charge merchant fees to recover?
  • Are you being charged online banking fees, and are these still necessary?
  • Are you being charged for a high volume of transactions or cash drawer services, and are these competitive with other banks?

Banks are open to negotiation, and we sharpen their pencil for a long term relationship.

2. Are you sure you are paying the lowest amount of taxes you legally can do without entering into tax avoidance? 

 There are several opportunities to review to ensure that you are not overpaying taxes anywhere in your business or personally:

  • Payroll taxes
  • GST tax
  • State and local income taxes
  • Property taxes
  • SMSF – are you in pension mode if you are retiring etc. and can have your smsf pay zero tax

3. The Cheque Is in the Snail Mail!

Customers who take too long to pay you are one of the biggest cash drains in your business. Consider reviewing your terms, asking for deposits, or becoming more aggressive with collections to bring your DSO (days sales outstanding) down. 

When you do, you will see an instant, permanent cash flow improvement. Don’t do work for people that can’t or won’t pay you or are slow

4.  Watch for those unknown bank errors and scammers

You may have an eagle eye on your most extensive bank account, but what about your other cash stashes? 

 PayPal, petty cash, credit cards and business savings accounts are among the places that may not get daily scrutiny.  Ensure those accounts are properly reconciled and have the proper controls so funds don’t go missing or someone else’s transaction ends on your account

5.  It’s in Your Interest

An excellent problem to have is when your bank balances get to be significant

What is your optimum working capital level? First, you don’t need the money immediately, so make it work for you.  Then, make sure that money is still working hard for you by putting the excess in an interest-bearing account, reducing loans or used for more resourceful opportunities. 

Cash is King and so is a good cashflow strategy

We always recommend a cashflow strategy of ensuring your trading company does not become a cash-rich piggy bank. In case of if things go wrong, you leave your cash exposed. Reach out if you would like to discuss this aspect further.

Cash management is important when conducting an import or export business. Planning for funding of containers, currency fluctuations and disruption are all strategic planning matters. We have assisted clients in scenario planning for lumpy cash flow and large inflows and outflows that can happen with these types of operations.

Cash can also disappear when job planning does not happen or the project goes pear shape. Read our article about job management.

Make a your cashflow strategy a priority

If we can help you plug any of these cash leaks into your business, please don’t hesitate to reach out and let us know. A cash flow forward strategy allows you to plan where your working capital can find it hard. If you aren’t using a cash flow plan, then let us help you start the process.

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