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.

Understanding your revenue drivers

For your business to make money, you need to generate revenue.

You produce revenue through your usual business activity by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.

But what actually drives these revenue levels? And how do you get in control of these drivers?

Knowing Where Your Cash Is Coming From Is More Crucial Than Ever

As a business, you face multiple challenges, such as navigating an economic downturn, adapting to decreased consumer buying, and adjusting to evolving trading and market demands.

Understanding your revenue drivers is the first step to managing cash flow effectively. When you have a clear picture of where your revenue is generated, you’re better equipped to pivot or reinforce certain areas of your business as required. This insight allows for informed decision-making and confidence that your strategy aligns with high-impact areas of the business.

First Class Accounts Ovens & Murray can support this strategic thinking, helping you analyse revenue sources and overall business performance to identify where your revenue is strongest and how to enhance it further.

Important Areas to Consider

Revenue Channels

Where does your revenue actually come from? Do you create income from online sales and ecommerce, through retail sales in bricks and mortar stores, or through wholesales to other businesses? You may focus on just one of these channels, or it could be that you use a mixture of two, three or more.

With First Class Accounts Ovens & Murray’s support, you can measure the performance of each channel, making it easier to refine and improve your approach as your business and the market evolve.

Revenue Streams

Your total revenue will be made up of a number of different streams. Knowing which ones are most productive and the return they’re delivering helps with prioritisation.

For example, if 80% of your income comes from 20% of your products, perhaps you need to tighten up your product range and ditch some of the poor sellers.

If you’re selling more services to one particular industry, perhaps you should focus more marketing in this specific niche, or downscale your sales activity in less profitable niches.

First Class Accounts Ovens & Murray can assist by tracking these metrics, providing data-backed insights to support decisions on product lines and markets.

Product/Service Split

Do you know which products/services are the most profitable in the business?

Which products/services have been resilient to market changes (giving you some revenue stability) and which have adapted well to change?

The more you can dive into your metrics and find the most productive and adaptable products and services, the greater your ability is to provide constant and evolving revenue for the business.

With First Class Accounts Ovens & Murray’s expertise you can ensure you have access to real-time financial data to gauge what’s working well. 

Value vs Volume

Is your revenue based on selling high volumes at low margin or low volumes at a high margin?

Based on this, can you move your margin down to create a more attractive price point (and more value for customers)? Or are their ways to push volume up, shifting more units and boosting total revenue?

By diversifying into new channels, new streams or new products/services you can aim to balance value and volume to create brand new sales – and higher revenue levels.

With First Class Accounts Ovens & Murray, you can dive deeper into understanding this balance. By analysing value versus volume, you may find ways to adjust your margin to make products more appealing or identify opportunities to increase volume without sacrificing profitability.

Get Support with Revenue Generation and Growth

If you’re looking to better understand your revenue drivers and make informed financial decisions, First Class Accounts Ovens & Murray is here to help.

We specialise in management accounting, providing insights that empower your business to grow. Let us handle the details so you can focus on what you do best, knowing that your numbers are in expert hands.

Talk to us about exploring and understanding your revenue drivers

We’ll review the numbers in your business, help you to understand your revenue drivers and will give you proactive advice on enhancing your total revenue as a company.

Get in touch to kickstart your revenue generation.

Reduce your debtor days and improve cashflow

Managing the gap between the receiving money into your business and paying money out of your business is vital for sustaining viability.

So, how do you reduce your debtor days and improve your cashflow? Let's start with understanding debtor days. 

Debtor days is the average number of days taken for a business to receive payment for goods or services. Keeping track of the average number of days for a business to receive payment is important in understanding the cashflow gap you might experience and the impact on cashflow planning and budgets.

How to calculate debtor days

(Year-end receivables amount ÷ annual sales) x 365 days = average debtor days.

Here's an example: An IT consultant has in her terms and conditions that payment is due 21 days after invoice date. But she is interested to know what the actual average payment time is.

Trade debtors at 30 June 2019 = $35,000

Annual sales for 2019 = $478,000

(35,000 ÷ 478,000) x 365 = 26.7 days

With this information, she can either alter her cashflow planning according to the actual time-frame or take steps to reduce the average number of debtor days.

Here are ten things you can do to reduce the payment times?

1. Update your payment terms

Make sure the terms are clear on every invoice issued. Don’t forget to include bank details on the invoice!

First Class Accounts Ovens & Murray can assist in reviewing your payment terms and help integrate them into your invoicing software, ensuring consistent communication.

2. Regular admin

Schedule a regular time for your own administration and get your invoices out promptly.

3. Send to the right person

When you send invoices, make sure you address the email personally to your contact. Send the invoice to multiple addresses if possible, for example, your contact and the accounts department.

We can assist in setting up automated systems to manage your contact database, minimising errors in invoice distribution.

4. Use technology to your advantage

Use automated invoice reminders to notify customers when an invoice is about to be due and then when it is overdue. Do not wait to send notifications manually, let the software do it as soon as the invoice is a day overdue.

We can help implement the latest accounting software that includes automated reminder features, keeping your invoicing on track.

5. Make it easy for your customers

List the payment terms, for example, due in 14 days, as well as the actual due date.

6. Provide incentives for early payment 

For example, a 5% discount if paid within five days.

7. Offer several payment methods for clients

Adding options like credit card payments or online gateways such as PayPal makes it easier for clients to pay promptly.

We can advise on and set up various payment methods, ensuring integration with your existing systems.

8. Offer instalment payment plans over a mutually agreed period. 

This allows you to plan for part payments, rather than being inconvenienced by the whole invoice being paid late.

9. Do not offer unlimited credit to customers

Make sure your terms and conditions include the right to refuse further supply if invoices are outstanding. Request part or full payment before supplying more goods or services.

10. Talk to your suppliers

Maintain good relationships and clear communications so they are more likely to help you if you need an extension on your bills. If possible, renegotiate supplier terms that suit your business cashflow.

Take Advantage of Low-Activity Phases

During periods of lower business activity, take the time to:

• Update Terms and Conditions: Make sure they reflect your current business needs.
• Implement Alternative Payment Options: The more ways customers can pay, the fewer barriers there are to timely payment.
• Refine Business Systems: Use this time to review processes and find ways to improve them.
• Revamp Your Website: Ensure payment information and terms are clearly displayed.

First Class Accounts Ovens & Murray can support you in enhancing your business systems with app integration. We offer tailored advice on selecting and implementing the right apps for payment processing, invoicing, and cashflow management. Our services include ensuring seamless integration with existing systems to improve efficiency. We can also conduct cashflow analysis using app-based tools to compare your debtor days with industry standards, pinpointing areas where technology can help reduce payment times and optimise cashflow.

Talk to us about adding payment options, updating your software and improving business systems to assist in reducing the number of debtor days to improve your cashflow.

We can also look at average debtor days of your business compared to industry averages and discuss ways of managing cashflow during difficult periods.

Key numbers to focus on in your business now

As a business owner, it’s always been helpful to have an understanding of accounting – but in the world today, it’s never been more important to have a good grasp on your finances and understand the key numbers to focus on in your business.

For many businesses, priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to maintain a profitable business model.

To track, monitor and drive your financial performance in this new business world, it’s increasingly important to have a handle on your key financial reports and metrics.

Getting to grips with your financial reports

In the past, extra cash in the business may have been seen as a surplus that needed to be spent on something. Recent years have shown us that having these reserves is vitally important for the survival and long-term health of your businesses.

To truly be in control of this cash, it’s vital that you can understand your accounts, financial reports and dashboards and ‘see the genuine story’ behind your financial position.

So, what are the key reports to focus on? Let’s take a look:

Budget 

Your budget is the financial plan that's tied in with your strategic plan. In essence, the budget is your approximation of the money it will take to attain your key strategic goals, and the revenue (income) and profits you hope to make during this period. It’s a benchmark you can use to measure your actuals (historic numbers) against, allowing you to see the variances, gaps and missed targets over a given period.

Cashflow Statement 

A cashflow statement shows the flow of money into and out of your business.

Understanding these cash inflows and outflows in detail allows you to manage this ongoing process, allowing you to aim for a ‘positive cashflow position’ – where inflows outweigh outflows.

In your ideal positive scenario, you have enough liquid cash in the business to cover your costs, fund your operations and generate a profit.

Cashflow Forecast

Forecasting allows you to take your historic cash numbers and project them forward in time.

As such, you can see where the cashflow holes may appear weeks, or even months, in advance. This gives you time to take action, whether it’s increasing your income stream, reducing your underlying costs, chasing up unpaid invoices (aged debt) or going to lenders for additional funding.

Balance Sheet 

Your balance sheet shows you your company’s assets, liabilities and equity at a given point in time.

In a nutshell, it’s a snapshot of what your business owns (your assets), what you owe to other people (your liabilities) and what money and profits you currently have invested in the company (your equity).

Your balance sheet is useful for seeing what stock and equipment your business owns, how much debt (liabilities) you’ve worked up and what your company is actually worth. This is all incredibly useful information to have at your fingertips when making big business decisions.

Profit & Loss

Your profit and loss report - often referred to as your P&L. Your P&L gives you an overview of the company’s revenues, costs and expenses over a given historic period of time.

While the balance sheet is a snapshot, your P&L is more like a moving video. It shows you how your finances are progressing by demonstrating how revenue is coming in and costs/expenses are going out (rather than cash coming in and going out, as you see in your cashflow statement and cashflow forecasts).

There is a range of software and apps that you can use to generate the above reports so you can understand and focus on the key numbers in your business. For example Xero. 

Talk to us about software and apps to help you with the financial reporting and forecasting for your business

Should you buy or lease your business assets?

There are certain items of equipment, machinery and hardware that are essential to the operation of your business – whether it’s the delivery van you use to run your home-delivery food service, or the high-end digital printer you use to run your print business.

But when a critical business asset is required, should you buy this item outright, or should you lease the item and pay for it in handy monthly instalments?

To buy or to lease? That is the question

Buying new pieces of business equipment, plant, machinery or vehicles can be an expensive investment. So, depending on your financial situation, it’s important to weigh up the pros and cons of buying, or opting for a leasing option.

First of all, let's look at why you might to decide to buy the item.

Buying: the pros and cons

Pro: It’s a tangible asset

When you buy an item, you own the item outright and it will appear on your balance sheet as one your business assets. As such, by owning these assets outright you increase the perceived capital and value of your business. You can also claim the cost of the asset against your capital allowance for tax purposes.

Pro: It’s yours for the life of the asset 

Once you own the item, you have full use of the equipment for the duration of the life of the asset. Your use of the asset isn’t reliant on you being able to keep up regular lease payments, and if your financial circumstances change then you can sell the asset to free up the capital.

Con: It’s an expensive outlay

Paying for the item up-front is a large outlay for the business and will require you having the cash to cover this cost. Spending a large lump sum in this way may take cash away from other areas of the business, so you need to be 100% sure that this purchase is the right decision and a sound investment.

Con: You may require extra funding

If you don’t have the liquid cash available to buy the item outright, you may need to take out a loan. Asset finance is available from funding providers, but does tie you into a loan agreement that will add to your liabilities as a business – reducing your worth on the balance sheet.

How First Class Accounts Ovens & Murray can help

Our cashflow forecasting services can assist in determining whether you have the financial capacity to make an outright purchase. We can also implement appropriate apps to help you assess the impact on your working capital, ensuring you maintain enough liquidity to cover other business expenses.

Leasing: the pros and cons

Pro: Leasing has a cheaper entry point

If the item you need to purchase has a large price tag, leasing allows you to make use of the asset without the cost of buying it in full. For startups and smaller businesses with minimal capital behind them, this can make leasing a very attractive option. You may not own the asset, but you can make use of it – and this may be the difference between the success or failure of your business.

Pro: You can spread the cost

There is still an associated cost of leasing, but you can spread the cost over a longer period, making it easier to find the necessary liquid cash to meet your lease payments. With this money saved, you can then invest in other areas of the business, helping you to expand, grow and bring in more customers and revenue.

Con: You don’t own the asset

There are different types of leasing agreement. Under a capital lease, you do own the asset (once you’ve paid if off). But if you opt for an operating lease, this is a more short-term lease and you won’t own the asset at the end of the contract. Ownership does have its advantages (including being able to sell off the asset if required) so it’s important to consider what kind of leasing agreement you’re entering into and what the advantages/disadvantages may be.

Con: You may pay more in the long run

Most leasing agreements will attract additional costs and interest on your agreement, so you may well end up paying more than the market price for your asset in the long term. If you can cope with the higher cost, this is fine, but bear in mind that buying outright may have offered greater value.

Con: You may lose the use of the asset

If you can’t keep up your lease payments (due to poor cashflow for example) then the owner of the lease agreement may recall the asset. If this item is crucial to your business model, losing this key asset can have a profound impact on your ability to operate. In this respect, leasing is a more risky prospect, but also an easier option for businesses with less cash to splash.

How First Class Accounts Ovens & Murray can help

Our management accounting services ensure you have timely and accurate financial reports to make informed decisions about leasing versus buying. We can also help you understand your financials, so you can understand if you can meet your financial obligations

How to make the best choice for your business

Deciding whether to buy or lease your equipment isn’t always straightforward. It depends on factors like your financial situation, cash flow, and long-term business goals.

We offer a comprehensive cashflow forecasting and management accounting services to provide you with an accurate picture of your financial future. By implementing the appropriate apps, and with our support, you can review your current financial position, assess your cash flow, and look at your regular costs to help you decide whether buying or leasing is the right thing for the business.

Talk to us about whether buying or leasing is the best way forward.

Key ways to get more from your forecasting

During challenging times, many businesses see income either disappear completely or drop to dangerous levels.

To be able to navigate the future path of your cashflow, you need to start forecasting, so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position.

At First Class Accounts Ovens and Murray, we understand the importance of proactive cashflow management. Our team helps businesses like yours implement effective forecasting tools, ensuring you can monitor your cash position with ease and take timely action when needed.

Forecasting your future cash pipeline

Having access to detailed forecasts helps you to scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Remaining in control of the cash coming into (and going out of) the business is the real focus, so you can accurately predict your financial position and can resolve any issues.

Our team provides customised forecasting services, allowing you to see the full picture of your cashflow pipeline. We help you stay in control, so you can confidently manage both the inflow and outflow of cash.

Key ways to get more from your forecasting

Run regular forecasts

The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.

Use the latest cashflow forecasting apps 

Cashflow forecasting apps, like Futrli, integrate with your Xero accounts, giving a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.

At First Class Accounts Ovens and Murray, we specialise in integrating the latest forecasting tools with your accounting software. Our team can show you how to use apps like Futrli to get detailed insights into your cashflow, so you can make informed decisions based on real-time data

Explore the right revenue streams

Most sectors will have seen their face-to-face sales drop to absolute zero since quarantine restrictions came into place. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. An example of this is coffee shops that now sell roasted beans online (this will depend on lockdown restrictions). The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.

Get proactive with cost-cutting

If you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.

Review your staffing needs

Now’s not the time to make anyone redundant, but you can look at ways to reduce the costs of staffing and resourcing. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff’s welfare.

Run a variety of scenarios

Changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan when restrictions ease. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.

Look at various ways to access funding

If forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.

Forecasting is an important step to give you the business intelligence to support your decision making. 

By working with First Class Accounts Ovens and Murray, you’ll have the tools, insights, and ongoing support to ensure your cashflow forecasts are accurate and responsive to your needs.

Talk to us about setting up cashflow forecasting today. We’re here to help you stay in control of your financial future. Get in touch today.

How to use forecasts and scenario-planning

For centuries, accounting was all about reviewing historic information – but that only told you about the past, not what was going to happen in the future.

If you’re only looking back at past periods and historic numbers, that limits the insights you can achieve into your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of the business.

Forecasting changes this. With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future – and get in control of your business.

At First Class Accounts Ovens & Murray, we understand that your business is dynamic, constantly evolving, and influenced by countless factors. We specialise in implementing forecasting apps, such as Futrli, that allow you to see beyond the numbers and into the future of your business. 

Our bookkeeping and app implementation expertise helps ensure that you’re using up-to-date, accurate data when forecasting, giving you confidence in the decisions you make.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management. By moving to a forward-looking view of your business journey, you can see further down the road – and that helps to spot the opportunities and avoid the common business pitfalls.

By collaborating closely with you, our team at First Class Accounts Ovens and Murray can implement Futurli, or alternative forecasting apps to help you analyse trends, identify patterns, and anticipate challenges ahead of time. Our goal is to provide you with a clearer picture of what’s coming, so you can focus on making strategic decisions to grow your business. Whether it's sales, cash flow, or profit forecasting, our team is here to help you take charge of the future.

Forecasting adds value by:

Highlighting the data patterns

A forecasting tool takes your historic data and projects it forward in time. This helps you and your advisers to spot the patterns, trends, gaps and opportunities, revealing the true ‘story’ behind your business accounts. For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise any negative impact.

Giving you a future view of your business

Instinctively, business owners will look back at prior periods to assess performance. There’s value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than just backwards. Forecasting is the satnav, showing you the road ahead, rather than the rear-view mirror showing you the road you’ve already travelled.

At First Class Accounts Ovens and Murray we make it easy to access this future view by integrating apps that generate future financial projections with just a few clicks.  This gives you a clear understanding of what’s next for your business, enabling you to allocate resources more effectively, plan for growth, and avoid potential pitfalls. 

Helping you scenario-plan

With a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning ‘What if…?’ questions.

Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time. If option B performs better than option A, that’s invaluable information when defining your next strategic move.

Making informed, evidence-based decisions

Having ‘the full picture’ of combined historic numbers, forecasts and longer-term projections aides your business decision-making. Forecasting gives you solid evidence on which to base your strategy, and helps to red flag any threats that are looming on the horizon – giving you the best possible information to keep your executive team informed and on the ball.

We believe in making decisions based on evidence, not guesswork. That’s why implementing the appropriate apps can provide you with the data you need to inform your strategies. We ensure that your forecasts are based on accurate, up-to-date financial information, helping you make better decisions. Whether it's managing cash flow or planning for future growth, we give you the tools to act with confidence.

A deeper relationship with your accountant

Forecasting also helps us to get a far more granular view of your business. This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.

Take Control of Your Future with Forecasting

If you want to get in control of the destiny of your company, come and talk to us. Forecasting helps you highlight your future threats and opportunities – and create a proactive strategy to improve the performance of your business.

At First Class Accounts Ovens & Murray, we not only manage your bookkeeping but also help you implement powerful forecasting tools like Futrli. By connecting this app with your Xero platform, we can give you clear insights into what lies ahead. 

Our goal is to help you plan for the future, whether that involves managing cash flow, preparing for growth, or navigating uncertain markets. Whether you’re looking to grow your business, manage cash flow more effectively, or simply get a better sense of what’s coming, we provide the tools and insights you need to succeed.

Talk to us today to learn more about how forecasting can benefit your business and set you on the path to future success.

Building a Better Business in 10 Steps

What are you doing to build yourself a more successful business? There’s no magic bullet; it’s about taking small steps every day to get a bit better than the day before - it all adds up.

You're in Business

Congratulations! Running a business takes courage and commitment. It’s not easy, and at times you might find yourself questioning why you’re even doing it, but you’re here because you had a vision. You decided that being in business was a better way to achieve that vision than working for someone else. And you’re right; you just have to work on it. Good things come to people who hustle.

Starting a business is an achievement in itself. You’ve taken the leap, faced the uncertainty, and now you’re here. This is a significant step that many people don’t dare to take. It’s essential to remember why you started in the first place. Your business is not just a source of income; it's your legacy and your opportunity to make a difference. The road may be challenging, but it's also rewarding.

Continuous Development

You’re likely an expert in what you do. Maybe you’re a mechanic who knows the inside of a car engine like the back of your hand, or perhaps you’re a fashion retailer who can style anyone. This doesn’t mean you’re an expert at running your business, though. It’s hard taking time out of working in your business to work on it. But doing this is essential for its success.

Continuous learning and development are crucial. The business landscape is constantly changing, and staying updated with the latest trends, technologies, and practices is vital. Attend workshops, read industry publications, and seek out mentors who can guide you. Investing in your growth is an investment in your business's future.

There’s no magical overnight solution to building a more successful business. It’s about taking small steps every day to get a bit better than the day before.

So, What Should You Do to Build Yourself a More Successful Business?

We’ve broken it down into ten essential steps:

1. Get Clear on Exactly What You Want

Understanding your goals is the first step in building a better business. Ask yourself what success looks like for you. Is it about financial freedom, providing excellent service, or making a difference in your community? Write down your goals and make them specific and measurable. Clarity is power.

Getting clear on what you want is essential for setting a direction for your business. Take time to reflect on your short-term and long-term goals. Are you aiming to expand your customer base, increase revenue, or launch new products? Whatever your goals, make sure they align with your values and vision. Break them down into actionable steps, and remember, the clearer your goals, the easier it will be to achieve them.

Key actions:

• Identify your long-term vision and mission.
• Break down your goals into specific, measurable, achievable, relevant, and time-bound (SMART) objectives.
• Regularly review and adjust your goals as needed.

2. Be Open to Change and New Learning

The business world is always evolving, and being adaptable is vital. Embrace change and be open to learning new skills or adopting new technologies. This mindset will keep your business competitive and resilient. Remember, change is not a threat; it's an opportunity.

Being open to change is vital in today’s world. Technology, customer preferences, and market dynamics are constantly evolving. Embrace change by staying informed and willing to experiment with new ideas and strategies. Adaptability is a strength that can set your business apart from the competition.

Key actions:

• Encourage a culture of innovation within your team.
• Stay updated with industry trends and technological advancements.
• Be willing to pivot your business strategy if needed.

3. Define Where You Are Now (Warts and All)

Honesty is crucial. Evaluate your current situation, including your strengths, weaknesses, opportunities, and threats (SWOT analysis). This realistic assessment will help you identify areas for improvement and growth. Understanding where you stand will guide your future steps.

Defining your current position requires a candid assessment of your business. Conduct a SWOT analysis to understand your strengths, weaknesses, opportunities, and threats. Identify areas where you excel and aspects that need improvement. This awareness will help you make informed decisions and allocate resources effectively.

Key actions:

• Conduct a SWOT analysis to assess your current situation.
• Gather feedback from customers and employees to gain different perspectives.
• Identify key performance indicators (KPIs) to measure your progress.

4. Make a Plan

A well-thought-out plan is your roadmap to success. Outline the steps you need to take to achieve your goals, including resources, timelines, and responsibilities. Remember, a plan is not set in stone. Be flexible and willing to adjust it as needed.

Planning is the foundation of any successful business. Develop a detailed business plan that outlines your strategies, objectives, and action steps. Include financial projections, marketing strategies, and operational plans. A clear plan provides direction and helps you stay focused on your goals.

Key actions:

• Create a comprehensive business plan that outlines your strategies and objectives.
• Set realistic timelines and allocate resources accordingly.
• Regularly review and update your plan as circumstances change.

5. Get Your Organisational Structure Right

Your organisational structure impacts how your business operates and grows. Ensure that your team members understand their roles and responsibilities. Streamline processes to improve efficiency and communication. A strong structure supports your business's foundation and scalability.

The organisational structure is the backbone of your business. Ensure that your team understands their roles and responsibilities. Foster a collaborative environment where communication flows freely. Streamline processes to improve efficiency and productivity. A well-organised team is essential for executing your business plan.

Key actions:

• Define roles and responsibilities clearly within your organisation.
• Foster a culture of collaboration and open communication.
• Implement efficient processes to enhance productivity.

6. Be a Better Leader

Leadership is not about authority; it's about inspiration and influence. Lead by example, and empower your team to excel. Communicate your vision clearly and motivate your team to achieve it. Being a better leader positively impacts your business culture and results.

Effective leadership is about inspiring and guiding your team toward success. Lead by example, set high standards, and communicate your vision clearly. Encourage open communication and provide support and guidance to your team members. Being a better leader will inspire your team to reach their full potential.

Key actions:

• Lead by example and demonstrate the behaviours you expect from your team.
• Provide regular feedback and recognition to motivate your employees.
• Invest in leadership training and development for yourself and your team.

7. Be Held Accountable by Someone Independent

Accountability drives results. Partner with a mentor, coach, or accountability group that can provide guidance and hold you accountable for your goals. Having someone outside your business to offer perspective can lead to valuable insights and improvements.

Accountability is a powerful tool for achieving your goals. Consider working with a mentor, coach, or accountability partner who can provide objective feedback and hold you accountable for your progress. Regular check-ins and assessments can help you stay on track and make necessary adjustments.

Key actions:

• Find a mentor or coach who can provide guidance and support.
• Join a business accountability group to share experiences and insights.
• Set regular check-ins to assess your progress and make necessary adjustments.

8. Build Strong Networks

Networking is essential for business growth. Connect with other professionals in your industry, attend events, and join online communities. Building strong relationships can lead to collaborations, referrals, and valuable opportunities that contribute to your business's success.

Networking is an essential part of business growth. Build strong relationships with other business owners, industry professionals, and potential clients. Attend networking events, join industry associations, and engage in online communities. Networking opens doors to new opportunities and collaborations.

Key actions:

• Attend industry events and networking functions to expand your connections.
• Engage in online communities and forums related to your industry.
• Foster mutually beneficial relationships with other business owners.

9. Monitor Your Progress

Regularly review your progress against your goals. Use key performance indicators (KPIs) to measure your success and identify areas for improvement. Tracking your progress allows you to celebrate achievements and make informed decisions for the future.

Monitoring your progress is crucial for staying on track. Set key performance indicators (KPIs) and regularly evaluate your business's performance. Celebrate successes and identify areas for improvement. Monitoring your progress helps you make informed decisions and adjust your strategies as needed.

Key actions:

• Set clear KPIs to measure your business's performance.
• Conduct regular performance reviews and adjust your strategies as needed.
• Celebrate milestones and achievements with your team.

10. Keep Your Well of Happiness Full

Running a business is demanding, but taking care of your well-being is essential. Prioritise self-care and maintain a healthy work-life balance. A happy and fulfilled entrepreneur is more likely to lead a successful business. Remember, your happiness fuels your motivation and creativity.

Maintaining a positive mindset and overall well-being is essential for long-term success. Take time to care for yourself and recharge your energy. A healthy work-life balance is crucial for avoiding burnout and staying motivated. Remember, your business will thrive when you’re at your best.

Key actions:

• Prioritise self-care and well-being to prevent burnout.
• Set boundaries to maintain a healthy work-life balance.
• Engage in activities that bring you joy and relaxation.

Building a Business: The Ongoing Journey

Building a better business is not a one-time event; it's an ongoing journey. Success is not achieved overnight but through consistent effort and dedication. By implementing these ten steps, you can create a solid foundation for your business and set yourself up for long-term success. Remember, small, incremental changes can have a massive effect on your success.

Every step you take, every goal you achieve, brings you closer to the vision you set out to accomplish. Stay focused, stay motivated, and keep pushing forward. The journey may be challenging, but the rewards are well worth the effort.

“Success isn’t overnight. It’s when every day you get a little better than the day before. It all adds up.” - Dwayne ‘The Rock’ Johnson.

We’re here to help you, every step along the way. Get in touch!