Q2 Financial Check In: Keep Your Business Finances on Track

A quarterly check in is one of the more useful habits a business owner can build. It doesn't take long, and it gives you the chance to catch small issues while they're still small. We work with business owners throughout the year for exactly this reason — problems found in Q2 are far easier to deal with than problems found at year end.

Here's what's worth reviewing.

Know your numbers

• Look at your revenue, expenses and profit at regular intervals, not just at BAS or tax time
• Compare where you've landed against the budget and goals you set
• Flag anything that looks out of step with previous months and find out why

The point isn't to produce a report. It's to notice trends early enough to do something about them.

Stay across your cash flow

• Have a clear view of what's coming in and what's going out over the next few months
• Plan ahead for BAS, PAYG withholding, superannuation, payroll and any other scheduled obligations
• Keep funds set aside for tax and compliance rather than relying on whatever is in the account when the bill arrives

Cash flow problems rarely appear suddenly. They build over weeks, and they're much easier to manage when you can see them coming.

Chase up unpaid invoices

• Run an aged receivables report and see who still owes you
• Follow up overdue invoices consistently rather than in occasional bursts
• Build invoicing and payment follow up into your regular routine so it doesn't depend on you remembering

Money owed to you isn't money you can use. The longer an invoice sits, the harder it usually is to collect.

Keep your bookkeeping current

• Check that transactions are being entered and categorised correctly as you go
• Reconcile your bank and credit card accounts every month without exception
• Keep receipts, invoices and supporting records organised and accessible

Current bookkeeping is what makes every other item on this list possible. Without it, you're working from guesswork.

Plan for what's coming

• Look ahead at equipment purchases, software renewals, hiring, marketing spend or anything else on the horizon this quarter
• Confirm your cash flow can absorb larger expenses before you commit to them

A purchase that made sense in principle can still cause problems if the timing is wrong.

Keeping it manageable

Sound financial management doesn't need to be complicated. Stay consistent, understand your numbers, and deal with issues as they surface rather than letting them accumulate.

If you'd like help keeping your business finances organised and up to date, CSCG can assist. Visit www.cscg.com.au or call 9974 8333 to organise an obligation free consultation.