Amanda's Blog

Opportunities to Increase Cash Flow

I was brought up with the saying “Make hay when the sun shines” and perhaps that is a reflection of why I loved the wheat fields of the prairies in Canada, but that’s another story.

I’ve recently found myself quoting those words when opportunities to do more work have come my way. Knowing that for me the more work I do, the more money I make. I can increase the stash of cash I have to cover me through the potentially tougher months ahead.

I work with a select group of clients as their part-time CFO providing management reports and strategy. But I have a couple of clients whose businesses have already or are terminating in the next month which means that I’ve lost a significant chunk of my income.

I thought, ok, now I’ve got the time to focus on rolling out my online programs and promote to the wider business community. I signed up for more training and committed to four major training events from May to July. And yes, I do have one major training or mentoring ...

Three Tips To Get The Most From Your Accounting System

There are three common mistakes I see regularly when I’m reviewing the set up of accounting systems. If you who want useful management reports, follow these three tips. Read more...

Originally posted on Inside Small Business

Why Focussing on Revenue Won’t Make You Profitable

Too many times I’ve met business owners whose only focus on the numbers is checking their revenue. Whilst revenue is fundamental for all businesses, focusing on this alone doesn’t give enough information to know whether you’re making a profit or not.

Revenue goals are important, don’t get me wrong. There’s nothing more exciting than getting to that first 6 figures revenue figure, or the half a million dollar mark or the million dollar revenue line.

And like all goals, they serve an important purpose for something to aim for and to then celebrate when achieved.

My issue is that revenue of itself isn’t enough. There’s no point having revenue of say $ 100,000 if your costs are $ 120,000.

That’s where another number comes into play. Break even or what I like to call minimum income. It’s also what is needed to fulfil the key element of presence. Without a business that is at least meeting its costs, your presence in business is at risk.

There is only so long that a business will surviv...

The Shifting Sands Under Our Feet

Do you feel like there are shifting sands in your business world right now? Does every day feel like a new game with a different set of rules.

Confusion

It’s normal to feel confused at this time. We’ve got deadlines that weren’t there before. We’ve got questions as to who, what, when and how. There are situations that just don’t fit in the list of eligibility or then again they might.

Even as a qualified professional who has taken the time to read the legislation, I’m finding it confusing. Some of the questions I’m asked, I just can’t provide an accurate answer for.

I’ve lodged BAS returns that should have the Cash Flow Boost Payment processed automatically against but haven’t. I’ve had to go back through the legislation again to check the eligibility requirements. Now to work out where to lodge the request to have it reviewed.

I’ve had a bookkeeper completely stuff up the processing of the JobKeeper payments by putting the full $ 1,500 in the Jo...

3 Tips When Cash Flow is Tight

Cash flow is tight in businesses and in some cases is non-existent in today’s Covid-19 world. But chances are you’ve had tight cash flow in the past when business was “good” or “normal”.

Like any situation you can choose how you react to it. You can bury your head in the sand or throw your hands up in the air and give up.

Or, you could choose to think differently.

1. Is this an opportunity?

Is this a chance to re-think your business model? Is this an opportunity to re-consider what you do and how you do it? Does this help you to pivot your business to be stronger in the future?

Perhaps the opportunity is in reviewing the way you invoice your clients or customers. Do you do the work, invoice for the work and then wait for your client or customer to pay you? Is this the time to re-consider that? If you think about most retail type businesses; you don’t walk out of the shop or their premises with your goods without having paid for them.

Maybe now is...

5 Cash Flow Tips For Today

Cash flow, the lifeblood of business, is often a challenge when business is going well. It’s even more of a challenge during these current circumstances with lockdowns, shutdowns and people staying at home.

My 5 tips for today to help you through the next few weeks:

1. Make lists of what you need to buy

My parents are both 94 years of age and between my sister and my husband we’ve been doing their food shopping for them. They have always written shopping lists for as long as I can remember.

But what’s really interesting, is they told me the other day that they are spending less money than usual. Why? Because even though they’ve shopped with a list, when they’re in the shops themselves, they’ll see something that wasn’t on the list. It may be something that they need. Or it may be something they think they could have that for lunch one day for a change. So each week, they’d buy more than was on their list.

By making a list and sticking to it, you’ll save your...

Time To Go Back To The Basics

With our business worlds turned upside down, it’s time to go back to the basics.

Time to learn or review core concepts and re-build our financial foundations. Not only build them literally but also to really know what they are and what they mean.

Core financial concepts are the basics that savvy business owners use every day to make decisions.

Whether you’ve recently started out in business or been operating for a number of years, unless you’ve taken the time in the past to truly learn about the core financial concepts you’ll have been missing out on important data about what’s been happening in your business.

Invariably, when business owners approach me for assistance, they’re feeling out of control. They are usually overwhelmed and inwardly admitting their inexperience.

From Inexperience to Understanding

The lack of experience usually results in poor cash flow and low profits. You can’t focus on the numbers to improve the results if you don’t know wh...

The Haves and The Have Nots

The requirements of businesses to shutdown or convert to team members working from home has created a new social divide between the haves and the have nots.

The Haves

There are those who still have work to do. They are working from home, often in cramped and difficult situations. Some are working from their laptop whilst sitting on their beds in order to create a quiet space away from the rest of the family.

Others are dealing with children at home, learning how to homeschool during the day and then sitting up late at night doing their work.

Some have dedicated offices already, others are using the kitchen or dining table.

Those business owners are the lucky ones. They still have work to do, clients to invoice and money, hopefully, coming into their bank accounts to pay the wages and the bills.

But are they really the lucky ones? Maybe. Maybe not. It's a case of setting up new systems, learning new management skills and how to keep in touch with a...

The Financial Needs of a Modern Business

The modern business has a different set of financial requirements to a traditional business.

Modern businesses may have lumpy cash flow where they run a campaign to sell a service. And then spend the next few months delivering without any further income.

But like every business, the modern business owner needs:

to understand the core financial concepts,
to develop focused management skills, and
to create a planned growth strategy.

Knowing how to do the bookkeeping is a useful skill to learn; but what's more important is to understand and interpret the numbers. Use the numbers to tell the story of the business. Interpreting the numbers provides further insights into the business helping you to make good business decisions.

A profitable modern business requires the owner to have a broad range of skills and knowledge.

Core Financial Concepts

Core financial concepts are the foundations of business numbers. The basic building blocks on which everyth...

Time to Batten The Hatches for Your Business Survival

There are new initiatives are being announced by governments on a daily basis. Wherever you are, find out what they mean for your business and act accordingly.

There are also a number of measures you can take irrespective of how the initiatives may impact your business.

1. Think outside the box

How can you do business differently and keep your doors open for business survival?

I was talking to a client who sells products in the disability sector. They are already finding opportunities to provide online services to their customers which previously would have been provided in a face-to-face environment by health professionals who are faced with isolation requirements.

We talked about what would happen if one of the staff in the office became infected thus requiring the entire team to self-isolate. I suggested finding someone they trusted who wasn't on the team who could go into their office. Then whilst they were there instruct them on what to do to send out orders.

If there's a

...

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Opportunities to Increase Cash Flow

Three Tips To Get The Most From Your Accounting System

Why Focussing on Revenue Won’t Make You Profitable

The Shifting Sands Under Our Feet

3 Tips When Cash Flow is Tight

1. Is this an opportunity?

5 Cash Flow Tips For Today

Cash flow, the lifeblood of business, is often a challenge when business is going well. It’s even more of a challenge during these current circumstances with lockdowns, shutdowns and people staying at home.

1. Make lists of what you need to buy

Time To Go Back To The Basics

With our business worlds turned upside down, it’s time to go back to the basics.

From Inexperience to Understanding

The Haves and The Have Nots

The requirements of businesses to shutdown or convert to team members working from home has created a new social divide between the haves and the have nots.

The Haves

The Financial Needs of a Modern Business

The modern business has a different set of financial requirements to a traditional business.

Modern businesses may have lumpy cash flow where they run a campaign to sell a service. And then spend the next few months delivering without any further income.

Core Financial Concepts

Time to Batten The Hatches for Your Business Survival

There are new initiatives are being announced by governments on a daily basis. Wherever you are, find out what they mean for your business and act accordingly.

1. Think outside the box

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