Cashflow Tips for Life and Business
Times are tough – between inflation and increasing interest rates and supply costs there’s a lot to keep on top of to maintain good cashflow.
Some tips to stay on the front foot with your cashflow include:
Contacting utilities (electricity, gas, internet, phone, etc) providers to ask for a better deal; if they don’t offer one, consider swapping providers for a more competitive option.
Reviewing insurance (car, home, health, workcover, public liability, etc) policies to make sure they’re competitive, while still fit for purpose.
Finding cheaper options for regular costs such as subscriptions, bundled technology packages and couriers. When it comes to personal subscriptions review all your auto debited subscriptions. In reviewing all those transactions you might realise that you’re not using that 4th streaming service that is debited from your cards each month. Think: tech, software, music (Spotify, Soundcloud, Apple Music), TV streaming (Netflix, Disney, Apple TV, Binge, Stan, Paramount, Foxtel), Amazon, Audible, Phone Apps (On an Iphone go to: Settings > click on your Apple ID > Media and Purchases > Subscriptions), etc – these can all quickly add up to significant expenses each month.
Reducing travel expenses where possible by using virtual meetings to cut down on petrol, parking, accommodation, transport and meals.
Deferring payment of expenses by paying closer to the due date and/or taking advantage of paying in instalments instead of the full amount upfront. ATO payments, rates, insurances can often be broken down into bite size payments that make it easier to manage on a monthly basis.
Tighten your Terms of Trade – if you’re self employed or running a business, shorten the time frame for any outstanding work so that the payment is coming in sooner. Set out clear payment guidelines for your customers and consider reviewing your supply terms if a customer regularly fails to pay on time.
Utilise Book-keeping Software – If you’re using book-keeping software such as Xero or MYOB (or any of the other ones too) consider inputting payables with bill due dates and take advantage of the software cashflow reporting. There are some good report options if invoicing & payables are both input into the software.
Hope these little suggestions can help you with some small wins if you need more help to improve your cashflow, don’t hesitate to get in touch.
