8 Bad Money Habits to Kick – Part 3

David Balwin
CPA | Accountant | Business Advisor

Welcome to Part Three of four Blogs in which we will look at 8 money habits business owners should make sure are NOT occurring in their business.

Not seeing how the little things add up

“While I’m here I’ll just grab some of this and some of that – I’m sure we need it or it will be useful somehow in the business.” or “I know there is a fee if I withdraw from this ATM, however, my Bank’s ATM is outside and round the corner, and the time it would take me ….”

Sound familiar?  It’s the little purchases and expenditures that start to add up and can significantly affect cashflow and health of the finances.  Make sure you monitor what office supplies and purchases are needed and when  ..  and only spend to the plan!  If you need to withdraw money, either keep a petty cash float or go the extra mile to your bank- those charges can really add up.

Generally think  …  do I need to spend that money  …  am I maximising the money I am spending … so there are no nasty surprises at month end.

Not planning for retirement.

Of course we’re planning for retirement … the retirement funding plan is established and  superannuation is set up – usual questions such as, is there enough contribution and is the fund performing well, are being asked and monitored.

But what about the business at retirement time?

Plans need to be developed to migrate the business when it is time to enjoy the fruits of your labour.  Is it intended to sell the business?  If so, what lead time would need to be considered?  Will the business be wound down?  If so, how will this occur?

As with start up, at business end we need to plan, plan, plan.

Call me today if you need help managing your business’s wealth – (07) 3264 4783