With the end of financial year (EOFY) fast approaching you could be understandably busy with sales, stocktakes, completing your EOFY accounts etc. However, don’t fall into the trap of making hasty decisions that could affect your cash flow now and in the future. Use the following 10 tips before and after the EOFY to help you make vital financial decisions for your business.
Prior to EOFY
1. Join Bartercard!
Most membership fees for professional associations, including Bartercard, are fully tax deductable expense so, purchase a Bartercard membership today (these fees includes the publication and subscription fee along with the monthly administration fees).
2. Bring it forward – pay your creditors in Bartercard trade dollars
Where possible, spend your Bartercard trade dollars on outstanding expenses. You’ll not only save valuable cash in your business but bring forward tax deductable items to this financial year. For example, are there any self-education expenses you could pay for now? Or do you need to upgrade your office furniture/décor?
3. Run down your stock
Instead of heavily discounting your stock in an EOFY sale, sell it through Bartercard. Account managers around the country can assist to move stock or you can upload it onto Bartercard’s online trading facility – the Members Trading Portal.
4. Donate to charity
If you’d like to make a donation to a charity before 1 July 2014, pick one of the charities that accept Bartercard trade dollars as donations. This includes Bartercard’s own charity - The Bartercard charity foundation.
5. Collect outstanding debts
Don’t write off bad debt, go through your list of debtors and approach each of them and ask if they can pay you either in trade dollars or products and services that you could on sell in Bartercard.
After end financial year
1. Get your finances in order for 2014/15
Lodge this financial year’s paperwork with a Bartercard Accountant and then work with them and or a Financial Planner on Bartercard to help you project and make financial decisions for the next financial year.
2. Review your interest free credit limit with Bartercard
When projecting your cash flow for 2014/15 factor in what credit limit you’ll need on your Bartercard account. If you applied for an increase would this provide you with a bit more freedom and assist your cash flow?
3. Put yourself out there
Ask for referrals from your Bartercard customers. Make a habit of asking your Bartercard customers/clients if they know of anyone who would be interested your product or service. Don’t assume people will rave about you. Purposely ask them to promote your business to their friends other business associates. If you don’t ask you don’t get.
4. Win cash contracts with Bartercard
If you’re looking for an innovative way to win new contracts in the new financial year, how about offering a slightly different payment method? You could offer new clients the option to pay a component of the contract amount in either Bartercard trade dollars or products or services that you can on sell in the Bartercard network which would realise the full contract amount. This is a great way to be competitive in your own market and increase your cash sales using Bartercard.
5. Increase your cash flow by purchasing on Bartercard
If you want to expand your product line, pay creditors, increase your staff’s wages/bonuses, or seek new advertising and promotional avenues, use Bartercard to pay for all these expenses leaving cash in your business.
Author: Emily Johnson, Psychologist, MPsychOrg, MAPS.