The economic challenges of the year 2023 mean this is a good idea for your business to consider costs. Tough conditions, unpredictable supply chains, and rising inflation mean it’s time for expert support for your finances. Here are 7 strategies to discuss with your accountant.
1. Manage cash flow
Cash flow management helps you predict how much money will be available to your business in the future & helps you identify how much money your business needs to cover debts, like paying staff and suppliers. Ask your accountant for tailored advice specific to your business on balancing your salary with your business finances without risking your assets.
2. Start tax planning
Early starting tax planning allows your accountant to review your income and expenses before the end of the financial year – leaving room for some strategic decisions in the final quarter. An expert accountant team has the knowledge to deal with all tax obligations arising from your business or personal affairs in an efficient manner. With their processes and use of the latest software & technology they can manage all of your tax related obligations. They may recommend tax planning as part of a broader tax minimisation strategy.
Debt consolidation is the process of paying off multiple debts with a new loan or balance transfer credit card,often at a lower interest rate. Multiple sources of debt can be stressful for business owners. Debt consolidation or refinancing rolls all debts into a single consolidated loan which can help improve cashflow and save on interest payments. Your accountant can support the debt consolidation process, create a strategy, and provide key information to lenders.
4. Plan for your future
Knowing your current position helps inform financial planning decisions for long-term benefits. Your accountant and financial planner can work together to align your strategies with business objectives.
5. Set growth target
Not all businesses and industries slow down in tough economic conditions. If you’re ready for growth in 2023, keep an eye on costs and get expert support to forecast and plan your finances. Your accountant may suggest reviewing your performance, costs and pricing to create a strategy to reach your 2023 financial goals.
6.Review payment terms
The gap between delivery and payment can be a cashflow squeeze for many businesses. Reviewing your average times to receive or making invoice payments can help inform decisions on your AP and AR payment terms. This may require negotiation with both customers and suppliers to ensure partnerships are not impacted negatively.
7.Forecast for informed decisions
This is a good start to forecast your revenue and costs. In uncertain economic times, regular forecasts inform better financial decisions. Your accountant can help you gather the correct information. For example your P&L, cashflow statement, and balance sheet to create a realistic forecast aligned with your business goals that prepares for the highs and the lows.