Payment and trading terms – saving tips for Tradies…
Increasing cashflow is the dream of many tradies. But like a complete bathroom reno, rarely is it a straightforward task.
Actioning your trading and payment terms can be a solid way of ensuring savings are coming in on a scheduled basis. Not all business changes can be implemented by the average tradie, which is why the team at Oracle Accounting & Wealth is on your side. They have a team of experts ready to help you save money and grow your business how you want. Below are some tips on increasing cashflow via terms, as well as when/how to engage the right professional help.
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When it comes to setting out payment terms for jobs, it’s important to put yourself first. Being too generous when it comes setting terms for customers can be harmful for your cashflow, especially when co-ordinated with your own expenses. This caution should be doubled when it comes to offering extensions or generous credit terms, and tradies should evaluate the health of the business before agreeing. Your cashflow will benefit greatly from good credit terms from suppliers, but it’s important to remember at some point it needs to be paid in full. When it comes to buying supplies, always aim to buy only what you need and no more. Over-buying beyond your budget limit hurts your cashflow as well as leaves you in the lurch when it comes to paying suppliers.
Engage a professional
Establishing a basic business foundation can be a crucial step owners can overlook when drawing up cashflow strategies.
This doesn’t mean tradies need to start breaking out the books and calculators regularly. Many of the roles, such as bookkeeping and asset management, can be outsourced to a firm such as Oracle Accounting & Wealth. As well as helping with the more complicated aspects of business, Oracle Accounting & Wealth can help train you in the basic principles. This way, you’re well-equipped to face the day-to-day business challenges that come your way.
You can get started right now by downloading Oracle Accounting & Wealth’s business-plan template.
The template – and more information about Oracle Accounting and Wealth’s services – can be found at www.oracleaccounting.com.au/free-business-plan-template/
Article Credited to Apr/May issue of The Tradie magazine
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Oracle Accounting & Wealth is located at Suite 31, 89-97 Jones Street ULTIMO NSW 2007. Phone: 02-9715 2977
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Disclaimer
The information in this newsletter / factsheet is factual but general in nature. It should not and is not to be construed as advice at any level whatsoever. Because it contains general information that has not been tailored to your personal circumstances it may not be suitable information for you. You must always seek personal financial or taxation advice prior to acting on this information. Further, as many of the comments in this newsletter / factsheet are general in nature, anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.