Nearing Xmas and the Festive Season
Some businesses will be winding up now and some winding down. For all of you cash is king so try to collect as much cash before Xmas . Review your debtors ledger and follow up immediately if payments are overdue. Make sure you have a collection procedure and you follow it. Do you have someone apart from the business owner to chase up debtors and a third party to assist you? New customers - are you doing credit checks? and why do you give them trade terms if you have no past history of prompt payment from them. Who is still expecting payment 20th following month? Why? Times have changed.
For those approaching a quiet time - time to reflect on what has gone well to date and what problems you are having? What can you do about them? Spend time doing some direct marketing, calling customers, use updating databases as a reason for contacting clients.
Have you felt you are on the pulse with your business ? Do you operate real time systems so you know where your business is at ? Maybe time to think about Xero to get you ahead? or look to upgrade MYOB to MYOB live which rolls out soon- combination of data in the cloud and desktop.
Xmas presents and entertainment- remember gifts of food and beverage and staff lunches out are 50% deductible. Why not other tangible gifts? Get a 100% tax deduction instead.