Managing Expenses for Business Success

Effectively managing your expenses is crucial for sustaining growth and ensuring profitability in your business while ensuring a smoother journey along the way. 

Whether you're a start-up or an established enterprise, maintaining control over your finances can be the difference between success and failure. 

Here are eight strategies to help you better manage your business expenses and keep your finances and operations running smoothly.

1. Establish a Comprehensive Budget

Creating a detailed budget is the foundation of managing expenses for business success. A budget shouldn't just be a one-time task but a dynamic tool that adapts as your business grows.

Start by identifying your fixed and variable costs, and use historical data to forecast future expenses. Regularly review and adjust your budget to reflect changes in your business environment, ensuring it remains relevant and accurate.

First Class Accounts Ovens and Murray can assist by helping you establish and maintain a tailored budget, leveraging expert insights and real-time financial data to keep your business on track.

2. Monitor cashflow Diligently

Cashflow is the lifeblood of any business. Keeping a close eye on your inflows and outflows will help you avoid cash shortages.

Implement a system to monitor your cashflow in real time. This could be through accounting software, like Xero, that alerts you to discrepancies or potential problems. Regular cashflow analysis enables you to identify trends and make informed financial decisions promptly.

With First Class Accounts Ovens and Murray’s cashflow management services, you’ll gain access to regular reporting and expert advice, ensuring you’re always prepared for any financial challenges.

3. Separate Personal and Business Finances

Mixing personal and business finances can lead to confusion, making it difficult to track business expenses accurately. 

Open dedicated business banking accounts and ensure only business transactions are conducted through them. 

This separation not only aids in clear financial analysis but also simplifies tax preparation and legal obligations.

4. Implement Expense Tracking Tools

Technology offers numerous solutions to streamline managing expenses for business success. Consider using expense tracking software or apps, like Weel or Dext, that allow you to photograph receipts and automate entries. These tools can generate comprehensive reports, providing insights into spending patterns and helping you identify areas for cost reductions.

First Class Accounts Ovens and Murray can implement your expense tracking software and manage your bookkeeping, ensuring everything runs efficiently while saving you time and reducing errors.

5. Review and Reduce Unnecessary Expenses

Regularly review your expenses to identify non-essential costs. This could include subscriptions, services, or supplies that are rarely used or that don't add significant value to your operations. Make sure expenses are worthwhile, and approach vendors for better rates or seek alternative suppliers.

6. Foster a Cost-Conscious Culture

Encourage your team to be mindful of spending by promoting a culture that prioritizes cost efficiency. Educate employees about the impact of expenses on your business bottom line, and empower them to suggest improvements. 

When everyone is aware of financial goals, they are more likely to contribute to cost-saving initiatives.

7. Plan for Taxes Early

Taxes can be a significant expense, so it's crucial to plan for them well in advance. Work with a tax professional to ensure compliance with all tax obligations, and take advantage of any deductions or credits available to your business. Setting aside money for taxes up front helps prevent cashflow issues at tax time.

8. Regular Financial Audits

Conduct periodic audits of your financial statements. This doesn't necessarily mean hiring an outside firm; instead, engage a team member or business partner to review the records. These audits can help you discover discrepancies, unexpected expenses or even fraudulent activities early, allowing for timely correction.

Take Control by Managing Expenses for Business Success

Effective expense management is not a one-time task but an ongoing process that requires vigilance and adaptation. By establishing a robust budget, employing the right tools, and fostering a cost-conscious company culture, you can ensure your business maintains financial health.

Need assistance with managing your business finances? First Class Accounts Ovens and Murray offers bookkeeping services to streamline your expenses, improve cashflow, and support your long-term success. Contact us today to find out how we can help.

Five big business challenges for 2025

‘Uncertainty’ has been the defining phrase for the first half of the 2020s. The markets are unstable, supply chains have been wobbly and finding talent has been difficult.

But as we head into 2025, and the second half of the decade, what are the major threats, opportunities and challenges that your business should focus on?

We’ve highlighted five of the big business challenges and share how we can help you and your business.

Five big business challenges for 2025 (and beyond)

However well-organised you are, there are elements in the external environment that you just can’t control. These external factors can have a serious impact on your ability to trade, grow and turn a profit. So, are you on the ball and ready to tackle them in 2025?

Let’s look at five of the external factors you should be focused on:

Climate change and sustainability

It’s an unpleasant truth, but the environment is in real trouble. As a business, there’s a growing need to demonstrate your environmental responsibility. This means developing a sustainability strategy, investing in green technologies and demonstrating your environmental commitments.

If you’re working on building a sustainability strategy, First Class Accounts Ovens & Murray can assist with identifying how your financial management processes can align with environmental goals. We can help track spending on green initiatives, create accurate reporting for sustainability investments, and ensure your accounts reflect your environmental commitments.

AI and technological disruption

Artificial intelligence (AI) and automation have changed the game in a fantastically short timeframe. Finding the value in this tech is crucial, as well as understanding its limitations. Getting your digital transformation underway will be vitally important in 2025, as will exploring how AI and automation can kickstart your productivity, boost your customer service processes and create a real competitive advantage for the company as a whole.

First Class Accounts Ovens & Murray can support your business by streamlining your financial processes with automation. From automating payroll and accounts payable to integrating cloud-based accounting software, like Xero, we ensure your financial systems are ready to scale with your technological advancements.

Skills shortage and transforming your workforce

The ongoing skills shortage, combined with the reality of an aging workforce and changing employment expectations, is a major issue. To overcome the talent challenge, you’re going to need to rethink your recruitment policy, your training and what you do to retain your key people.Things like flexible working arrangements, continuous professional development (CPD) and a great company culture are all ways to attract and maintain your top talent.

Managing workforce costs effectively is critical when addressing these challenges. First Class Accounts Ovens & Murray can provide accurate payroll management and cost reporting to help you allocate resources efficiently, allowing you to focus on creating a workplace that attracts and retains talent.

Inflation and an unstable economy

The global and local economies are not out of the woods yet. Forecasts may be looking more positive but there’s still the ever-present threat of recession, rising inflation and high interest rates. Getting granular with your financial forecasting will help, as will exploring your options for additional revenue streams, better cashflow management and ready access to business finance.

At First Class Accounts Ovens & Murray, we offer cashflow forecasting and management services. By providing timely, accurate financial reports, we help you stay ahead of economic uncertainties and make informed decisions.

Regulatory compliance and reporting

Regulatory environments are getting increasingly complex, as governments wrestle with the need for tighter structures. Regulations around your environmental reporting, workplace relations and digital privacy are all likely to get tighter over the coming years. This means allocating time and resources to understanding and implementing the relevant compliance requirements.

First Class Accounts Ovens & Murray offers expertise in financial compliance and reporting. We ensure your books meet the latest regulatory standards and provide accurate reports. By staying on top of your obligations, you can focus more on running your business and less on the stress of regulatory changes.

Talk to us about overcoming the big challenges

There’s no magic wand that can change these macro environmental and economic factors. But awareness, detailed planning and good use of forecasting can be a major boost.

Talk to our team at First Class Accounts Ovens & Murray about your concerns for the year ahead. We’ll help you understand the major external factors and what you can do to make your business more resilient.

Dealing with uncertainty – tips for business owners

Whether you’re facing changing market conditions, supply chain disruptions, or other challenges, there’s still real uncertainty for business owners. We’re trading in challenging times at present. 

And knowing what step to take next is a key worry. We know that you invest more than simply time and money into your business. It is more than a job but part of your identity.

So, how do you get more clarity around your future plans? And how do you work on the short-term future of the business, when sales, income and cash are in short supply?

Focusing your efforts in the right places

Planning the next business move is difficult at the best of times, but it’s doubly problematic when we have so little clear idea of what a post-COVID19 business world will look like.

It's difficult to plan when we don't know what will be possible. What regulations will be in place once you can begin trading? Will the market have changed dramatically? Will you be able to trade over borders and continue to be an international operation? Will you have enough cash to actually operate?

As a business owner, you’ll be continually thinking of new business-critical issues to add to this list – but the reality is that you CAN’T control all these elements. This sense of mounting uncertainty is likely to raise your stress levels and make you more anxious.

So, how do you overcome these worries and find a practical solution?

Try to focus on the things you can control:

• Identify the things that matter to the short and long-term success of the business

• Find the things you can control and over which you have some influence.

It's too overwhelming to try and work on everything at the same time. Instead, try to focus on the one thing you can achieve each day.

At First Class Accounts Ovens & Murray, we can help you identify and prioritize these elements through detailed management accounting and cashflow forecasting. These tools empower you to make informed, confident decisions, even when navigating uncertain times.

Review your overheads and costs

One way to reduce your cashflow worries is to reduce your spending. Look at your controllable overheads and see if there are ways to negotiate better terms with suppliers, cut down on expenses or pause any subscriptions.

Our team can assist by reviewing your financial data and providing insights into where savings can be made without sacrificing operational efficiency. With First Class Accounts Ovens & Murray managing your accounts, you’ll save time and gain clarity.

Talk to debtors and creditors

If you can bring down your aged debt, that will help your overall financial health. Set up automatic reminders for any overdue payments. Also, talk to any late-paying customers and agree when these debts will be paid. And talk to suppliers about extending payment terms, if possible.

First Class Accounts Ovens & Murray can streamline your debtor management process by setting up automated payment reminders using integrated apps like Xero. These tools ensure your customers receive consistent, professional reminders about outstanding invoices, helping you reduce late payments and improve cashflow.

Our expertise extends to configuring these apps to suit your business, saving you time and ensuring payments are followed up efficiently. We can also assist with tracking your accounts payable, giving you better visibility and helping you negotiate extended payment terms with suppliers when needed.

Consider alternative revenue streams 

If your current business model doesn’t work well in lockdown, are there other online services that you could diversify into? Any new revenue streams will help to bolster your income and cash position.

Update your website and marketing

Having a great online presence is vital during this crisis, when most goods and services will be purchased online. Give your website a refresh and make it easy for potential customers to find and buy your services.

Catch up with your team

Maintaining contact with your employees is vital if you’re going to nurture team spirit. The more engaged your team is, the easier it will be to embrace change together.

Reach out for tailored support

First Class Accounts Ovens & Murray offers flexible, 100% contract-based bookkeeping services. This means no interruptions due to staffing gaps—your accounts will always be managed on time, accurately, and with efficiency. By partnering with us, you can focus on growing your business while we handle the financial details.

Take control of what you can today by seeking expert advice and support. With First Class Accounts Ovens & Murray, you’ll gain access to expert bookkeeping, process improvement, and cashflow solutions to help you stay ahead, no matter the challenges.

Forecasting: taking the guesswork out of your finance strategy.

As a business owner, it’s increasingly difficult to ride out the changing economic conditions and manage the financial ups and downs of doing business in 2024.

According to recent data from the Australian Securities and Investments Commission (ASIC), 11,053 companies went into administration in the 2023-24 financial year.

Knowing what’s around the next corner would be incredibly helpful. This is where forecasting tools and financial projections can become a real game-changer. 

Why your small business should embrace financial forecasting.

Good financial management starts with solid bookkeeping and accounting processes. But your accounts only tell you what’s happened in the PAST – not what will happen in the FUTURE. 

Financial forecasting takes this historic accounting data and projects areas like cashflow, operating expenses and revenue forward in time. In essence, what you get is a projection of how your finances may look one month, six months or even a year down the line.

Why is this important?

Let’s take a look at just a few of the benefits of using accurate forecasting to manage the financial strategy and health of the business:

Accurate predictions.

Your forecasting software can analyse your historical data and current trends to provide accurate predictions of future sales, expenses and cash flow. These forecasts allow you to accurately see how your finances will look in the future.

How First Class Accounts Ovens & Murray can help: We make sure your bookkeeping and management accounting is always up to date and accurate. This means your financial data is reliable, which is critical for effective forecasting.

Proactive financial management.

Armed with these forecasts, you can quickly see where there’s a need to boost revenue, manage cashflow or optimise your allocation of resources. In short, this information helps you assess and avoid the big finance pitfalls. 

How First Class Accounts Ovens & Murray can help: By outsourcing your bookkeeping processes to us, you’ll have access to accurate and timely financial data. This gives you the insights you need to make proactive decisions, without worrying about the time-consuming administrative tasks.

Improved cashflow management.

Forecasting helps you spot any potential cashflow shortages or surpluses. This prior warning gives you time to take cost-cutting action to rebalance cash shortfalls, or find useful ways to reinvest the surplus cash.

How First Class Accounts Ovens & Murray can help: Cashflow forecasting is one of our key services. By working with First Class Accounts Ovens & Murray, you’ll have a clear picture of your current and projected cash position, enabling you to stay ahead of any financial challenges.

Better allocation of resources.

With a deeper understanding of your future financial needs, you can allocate resources like equipment and staff more effectively. This helps to boost growth and expansion, while keeping your finances in a healthy position.

Data-driven decision-making.

With a forecasting solution in your app stack, you have the data, forecasts and reporting needed to make truly informed decisions about your business's financial future, and to review these decisions on a regular basis.

Talk to us about adding forecasting to your app stack

There’s a wide choice of financial forecasting apps out there, all of which can neatly integrate with your existing accounting software and business reporting systems. 

Our team at First Class Accounts Ovens & Murray can set up, manage, and integrate solutions like Futrli.

We’ll work with you to choose the best fit for your business and ensure the tools are effectively implemented.

Speak to us about how forecasting can bring clarity to your financial future. With accurate, up-to-date data and the right systems in place, you’ll feel more confident about tackling whatever comes next.

Benefits of outsourcing payroll during the holiday season

The holiday season is a time to celebrate, reflect on the year, and enjoy a well-earned break, and the benefits of outsourcing payroll during the holiday season can’t be overlooked when it comes to reducing stress and handling year-end tasks.

From organising staff leave to ensuring holiday pay is processed correctly, managing payroll during this period can feel overwhelming.

Outsourcing your payroll could be the solution you need to reduce stress, save time, and enjoy the festive season without the administrative burden. 

Here’s how it can make a difference for your business.

1. Stay on Top of Holiday Pay Obligations

The end of the year often brings questions about leave entitlements, public holiday pay rates, and other seasonal payroll requirements. 

Getting these details wrong can cause confusion, dissatisfaction, or even legal complications. 

A professional payroll service ensures all calculations are accurate and compliant with regulations, so your employees are paid correctly every time.

Outsourcing your payroll is especially helpful during the holiday season, when obligations like holiday pay and staff leave become more complex. 

The benefits of outsourcing payroll during the holiday season include reducing errors and ensuring employees receive what they’re entitled to without the stress of manual calculations.

2. Avoid Disruptions During Staff Leave

With staff often taking holidays over Christmas, your business might find itself short-handed just when payroll deadlines loom. 

Outsourcing ensures payroll is processed on time, even when key team members are away. This continuity helps avoid late payments and ensures smooth operations.

3. Save Time When You Need It Most

The lead-up to Christmas is one of the busiest times of the year for many businesses. By outsourcing payroll, you free up valuable time to focus on other priorities, whether that’s meeting customer demand, finalising year-end accounts, or simply enjoying some downtime with your family.

One of the key benefits of outsourcing payroll during the holiday season is the time it saves. With fewer administrative tasks on your plate, you can focus on growing your business or spending quality time with family.

4. Ensure Compliance with Confidence

The rules around holiday pay and end-of-year reporting can be complex. 

A dedicated payroll service understands these requirements and ensures your business stays compliant. This reduces the risk of errors or penalties, giving you peace of mind that everything is handled professionally.

5. Focus on Your Business, Not Admin

As a business owner, your time is best spent growing your business, not on repetitive tasks or areas that require specialist skills or knowledge. 

Outsourcing payroll allows you to focus on what you do best while leaving the technical details to the experts.

Why Choose First Class Accounts Ovens & Murray for Your Payroll?

At First Class Accounts Ovens & Murray, we understand the pressure that comes with running a business during the holiday season. 

Our payroll services are designed to ensure everything runs smoothly, so you can focus on what matters most.

• Accuracy Guaranteed: Your staff are paid the right amount, on time, every time.
• Stress-Free Compliance: We handle all the details, ensuring your business meets its obligations.
• Efficient Processes: Our expertise saves you time and money, so you can invest your energy elsewhere.

Take the Pressure Off This Holiday Season

The benefits of outsourcing payroll during the holiday season go beyond just saving time. They ensure accuracy, compliance, and peace of mind for your business. Don’t let payroll stress weigh you down this Christmas. 

By outsourcing your payroll to First Class Accounts Ovens & Murray, you can ensure your team is taken care of while freeing yourself to enjoy the festive season.

Get in touch with us today to discuss how we can help your business.

How to keep your small construction company on track.

Times are tough in the Aussie construction industry. 

With rising costs, a lack of labour and a challenging economic climate. This is leading to a rising number of business failures.

About 1,400 construction firms filed for bankruptcy in the second half of 2023, according to a recent article from Inside Business. 

And it’s not just financial challenges that sole traders and contractors are facing. There’s also the stress of the physical and mental pressure of running your own construction business.

So, what can you do to keep your small construction company on track?

As a contractor, it’s hard work balancing your on-site time against the administrative and business-focused time that’s needed to keep your company fit and healthy.

But without a razor-sharp focus on cash, business development, profit margins and your own wellbeing, the business is liable to flounder – making business failure a possibility. 

Seven ways to keep your construction business healthy

1. Avoid working with just one customer.

Putting all your eggs in one basket is a risky move, so look into working with a varied mix of big and small clients to spread that risk. Even if you lose a few clients, you’re still left with a viable income stream. 

First Class Accounts Ovens & Murray can help you identify which clients and projects are most profitable by providing management accounting services. This ensures you have a clear view of your revenue streams and their long-term viability.

2. Diversify your revenue streams.

If all your income comes from one service, it’s time to diversify! Consider moving into new services or project areas, giving you multiple revenue streams and reducing your reliance on one source of income.

3. Optimise your cost management.

The major upfront costs and slow payment times in construction can make it difficult to keep cash in a positive position. Rising costs for raw materials are also a major headache. So, now’s a good time to explore strategies to reduce your overheads and negotiate better deals with your suppliers. 

We provide cashflow forecasting and budgeting tailored to the construction industry. By working with First Class Accounts Ovens & Murray, you’ll gain insights into your spending, enabling you to negotiate better supplier deals and plan for periods of tight cashflow.

4. Build strong relationships.

Stable, long-term customer relationships are crucial to your success. So put some real effort into nurturing partnerships with customers and suppliers, so you have a secure pipeline of projects and reliable supply chains.

5. Make good use of technology.

If you can automate an administrative process, automate it! Use the latest AI business tools to automate the answering of your business phone, the booking of customer appointments and the chasing of outstanding payments etc. Using digital tools helps improve your efficiency and can also cut your costs too.

First Class Accounts Ovens & Murray can assist you in identifying and integrating accounting software, like Xero, to streamline processes such as invoicing, payroll, and debt collection. This allows you to spend more time on-site and less on admin.

6. Utilise the available government support.

The Government wants construction to flourish, so it’s important to be aware of the available government grants, subsidies or tax incentives that can ease your financial pressures and help you to grow and prosper.

7. Take good care of yourself.

It’s crucial to not take on more work than you can handle. As with any industry, you need time away from work. Overworking and spending every waking hour on the business can be counterproductive. 

How We Can Help You Stay on Track

The construction industry is facing hard times: that’s the reality in the current market. But with careful planning, management and strategic thinking, you can overcome the challenges.

Talk to First Class Accounts Ovens & Murray about:

• Managing your cashflow: With tools like forecasting and budgeting tailored for construction.

• Streamlining your admin: Through efficient accounting software and automated processes.

• Developing a long-term strategy: Focused on reducing costs, diversifying income, and improving profitability.

We’re here to help you keep your small construction company on track. Let us take care of the numbers so you can focus on building your future.

Direct Debits and Online Payments

Do You Have Direct Debits and Online Payments Set Up for Your Business?

Making it easy for your customers to pay you is vital to business success. Getting direct debits and alternative payment methods linked to your business is so easy these days there's no excuse not to give your customers multiple ways of making payment.

Many service-based businesses choose direct debit arrangements with their clients to avoid late payment. If you’re often chasing overdue payments, consider implementing direct debit arrangements to reduce your administration time.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means that the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Need help integrating your systems? First Class Accounts Ovens & Murray can review your accounting software and implement the direct debit or online payment solutions to suit your business.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them at the time. Many customers appreciate the automation and simplicity of direct debits.

Make sure your payment terms and conditions are clear on your website and invoices and don't forget to include all your chosen payment methods for customers!

Unsure about setting this up? First Class Accounts Ovens & Murray can help ensure your payment terms are communicated clearly and that all payment methods are displayed on your invoices.

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge the clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Looking for guidance on managing fees? We can help you decide the best approach for your business and set up your accounting software to handle these charges automatically, saving you time and avoiding errors.

Better Transaction Recording

When you integrate direct debits and online payment methods with your accounting system, you dramatically reduce errors in recording customer payments – which means less time spent on your accounts!

Not Sure Where to Start?

If you’d like to make it easier for customers to pay you, talk to us about which solutions are best for your business. We can discuss which platforms have the best and most secure integrations with the accounting software you use.

Streamline Your Systems with Expert Support

Improving your payment systems doesn’t have to be complicated. With support from First Class Accounts Ovens & Murray, you can implement direct debits and online payments that save time, reduce admin errors, and improve cash flow. Contact us today to get started.

Cashflow and cost control

More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode.

Revenue, profit, and your bottom line are always important, and in 2024, maintaining steady cashflow remains the foundation for keeping your business running smoothly and adapting to challenges as they arise.

Regular cashflow forecasts will help you keep that in focus. Here’s why:

Cost control  

If you can't reach your targets for income, reining in your costs may give you a little extra head room to manage cashflow while you plan your next move.

At First Class Accounts Ovens & Murray, our team provides detailed cashflow analysis and forecasting services, ensuring you have a clear picture of your financial position. With actionable insights, we help you identify areas where costs can be reduced without compromising business quality.

Visibility on outgoings 

Cost control can be a challenge when it’s hard to pinpoint hidden costs or where established ways of doing things cost more money than they should. You may also have been coping with unexpected expenses, as you’ve adapted your business for unplanned circumstances.

We can your financial systems and processes to identify inefficiencies. Our expertise in management accounting ensures your data is not only accurate but also timely, so you’re never left guessing where your money is going.

Improving business practice

It's more than just keeping an eye on outgoings (though that's important). It's about looking at each aspect of your business and business systems (or the gaps where there should be business systems) to see if poor practice is driving costs up unnecessarily.

Streamlining your processes can drastically improve your cost control. We work with you to implement appropriate apps to improve efficiencies, save time and money, and reduce costly errors.

It can be useful to break it down  

You can look at cost centres such as office supplies or freight. Or you can look at what those costs do for your business.

It can help to analyse costs in terms of cost of sale and overheads.

Cost of sale and overheads

Cost of sale (also known as Cost of Goods Sold or CoGS) is how much it costs you to make a sale. In a business which sells products, CoGS is based on the price paid for the product, plus any costs necessary to put the merchandise into inventory and make it ready for sale, including shipping and handling. You can even break it down to calculate the cost of sale of individual units.

Overheads are general business expenses. They can’t be tracked directly to sales. Overheads are what it costs you to open your doors (whether online or actual) every morning.

What’s your plan?

1. Reduce unnecessary expenses
   Now might be the time to trim every expense that’s not related to your core product or service.
2. Suppliers
   Are you able to work with your providers to ask for discounts or more favourable payment terms on either cost of sale or overhead expenses?
3. Talk to the team
   Analyse your costs and involve your team, including frontline sales staff.
4. Advertising
   It might be a false economy to cut back on advertising, as customers are online looking for bargains and price-checking alternatives. Targeted campaigns might work better.
5. Prioritise
   Can you pinpoint the products most likely to bring the fastest or best return and hold back on products that are a slower sell?
6. Promote or discount
   If you have old or slow-moving stock, can you discount it and convert old stock to cash? If you can attract customers now, you may be able to use it to spotlight your other products.

Making managing cashflow easier

Every dollar you can pull back from your costs can go straight into cashflow. Whether your sales are booming or slow, keeping your costs under control is key to sustaining growth and stability.

At First Class Accounts Ovens & Murray, we understand the importance of managing your cashflow effectively. From cashflow forecasts to systems that streamline your operations, we partner with you to ensure your business has the financial stability it needs.

Want to get a handle on cash flow in your business?

Whether your sales are boom or bust, you want to make sure that your costs aren't holding you back. We can help.

Talk to us if you'd like to review your costs and your systems to keep costs under control. .

Planning for seasonal dips in income

Seasonal dips in income can be highly challenging when you’re a small business. But there are proactive ways to predict, plan for and overcome these dips in revenue.

The key to dealing with seasonal dips is to know when they’re most likely to occur, and to have measures in place to spread your income and revenue pipeline over the course of the year.

Understanding seasonality in your sector

If your business is seasonal such as pool supplies, or a ski gear specialist, you’ll be used to the peaks and troughs, but many 'non-seasonal' businesses experience times during the financial year where sales and revenue peak – and, on the flipside, where sales and revenue experience a pronounced dip.

When income is low at certain times of the year, it makes for challenging times. First Class Accounts Ovens & Murray can assist by analysing your business's financial history to pinpoint these peaks and troughs. Our expertise in management accounting provides insights that help you understand your sector’s unique seasonality and prepare for it.

So, what are the key ways to plan for this kind of seasonality?

Forecast your seasonality

It’s vital to know WHEN you’re most likely to experience any seasonal dips. Looking at bench-marking reports for your industry is one way to predict the seasonality in your niche or sector. But you can also use your own accounting data to great effect. Look back through your profit & loss reports and spot where the peaks and troughs have occurred over preceding years.

First Class Accounts Ovens & Murray offers forecasting services to help you assess this historical data. With our support, you can anticipate and prepare for quieter periods, ensuring that your financial planning is well-informed and tailored to your business.

Charge a premium in peak time 

One straightforward approach is to apply premium pricing for your products/services during the busy season. By increasing your pricing, you boost your overall revenue, giving you more working capital to see you through the leaner months when sales and income are at their lowest.

Our team can work with you to develop a pricing strategy that aligns with your cash flow needs, helping you make the most of high-demand periods while securing funds to navigate slower months.

Offer additional peak-time services

Offering added extras and other additional service lines during peak time is another way to maximise the season. In the months where customers are most engaged, look to upsell these premium services and offer more value. Satisfied clients will be more inclined to pay for added extras, giving you an increased revenue stream from the same number of customers.

We can help identify and structure these peak-time offerings, ensuring you’re positioned to maximise revenue during high-demand times.

Target other markets

Exploring other related markets is another useful tactic. When you’re experiencing downtime, look for other ways to monetise your existing assets, products or services. For example, if you’re a hotel where sales peak in summertime, offer discounted conference space in the winter months to boost revenue.

Diversify your products/services

If one product/service has a known seasonal dip, look at adding an additional product or service to offset this downtime. For example, a a ski resort could promote bike-riding or hiking breaks during the warmer summer months to keep revenue constant. Likewise a pool maintenance firm could establish an outdoor fireplace business for the colder months.

Have a regional e-commerce strategy

If you’re dependent on a small local market, broadening your marketing and e-commerce strategies can help to attract a wider customer base – and bolster sales. Paid advertising through Facebook, LinkedIn or Twitter can easily target new geographical markets, bringing in new customers and giving your revenue a much-needed uplift during seasonal troughs.

Talk to us about planning for seasonality

If your business is struggling with seasonal dips, and the resulting impact on cashflow, come and talk to us. We’ll help you identify the timing of your seasonal downtime, and come up with a clear strategy for stabilising your income across the year.

Get in touch to start planning for seasonal dips in income.