Get proactive with your finances and fix bad spending habits

Looking to get in control of your finances in 2025? Keeping on top of your finances is a critical part of keeping your business on track. But are you doing everything you can to optimise your financial management?

We have looked at some key ways to optimise your business, exploring different avenues to evolve your enterprise and create a legacy you can be proud of.
Let’s see how you can have better control over your financial numbers.
Having the right numbers at your fingertips
One of the biggest causes of business failure with new startups is poor cashflow and a lack of capital. Having enough money to cover your expenses, pay your workforce and invest in growth is what separates the successful businesses from those that fall by the wayside.
But what can you do to improve your cash position and keep yourself in the driving seat when it comes to managing the financial side of the business?

Here are six simple things you can do to get more proactive with your finances:
 
Embrace financial technology and cloud accounting
Make sure you’re using cloud-accounting solutions like Xero, with integrated bank feeds, expense tracking, simple invoicing and a real-time view of your numbers. You can also use the advanced reporting features to get deep insights into financial performance and use financial metrics to monitor performance.
Develop a framework of financial key performance indicators (KPIs) including gross profit margins, operating expenses, customer acquisition costs and revenue growth rates. By tracking these metrics, you can gauge your performance, spot any financial threats and make well-informed decisions about your financial management.
 
Forecast your cashflow position and potential challenges
Use cashflow forecasting tools to track your expected cash inflows and outflows. These projections give you an overview of your cash position for the months ahead, allowing you to top up your cash as required. It’s also sensible to build up some meaningful cash reserves, so you have capital behind you when cashflow gets tight.
 
Work on your aged debt and debtor management
It’s important that customers pay on time and that your payment terms are clear. Use your accounting software to send out automated reminders and have structured follow-up procedures in place for overdue payments. It’s also a good idea to offer early payment incentives and to nurture strong customer relationships to minimise your aged debt and improve cashflow.

Review your expenses with fresh eyes
Start by looking at your expenses from last month. What did you spend money on that isn’t vital to your business growth today? Here’s a checklist to help:

• Subscriptions and memberships: Do you have any that you haven’t used in months? Maybe you signed up for an email marketing tool but haven’t sent a campaign in all year. Or maybe there’s a monthly membership that’s been “just in case,” but hasn’t added tangible value recently.
• Software: Are you paying for a project management system you no longer use? Or perhaps you’ve been doubling up on tools, paying for two different services that do the same thing such as PDF editors.
• Outdated services: Think about any third-party services you’re outsourcing that no longer serve your business. Maybe you’ve moved to a different software solution, but you’ve been keeping the old one active “just in case.” That’s money down the drain.
• Miscellaneous overhead: Office space, supplies, or other costs that were important in the early stages of your business but have since become unnecessary or redundant. Check out the supply closet and take inventory of what’s there to reduce unnecessary orders being placed for stationery and office supplies.

Once you’ve identified these, take a good look at them. If you’re not actively using these services to grow your business, they’re just sinking your profitability.
 
Get strategic with your working capital and access to finance
Having a viable level of working capital in the business is a must. Explore the various financing options for boosting your capital. This can include business lines of credit, invoice financing or term loans, all of which help to increase funding and raise the company’s capital.
 
Talk to us about ways to improve your digital transformation
There has never been more tools to help you manage your finances. By embracing the best in financial and accounting tools, you give yourself (and your finance team) the superpowers to become cashflow positive, with capital behind you to drive your business to new heights.
 
If you’re looking to upgrade your financial management, talk to us. Our team will suggest the ideal accounting tech and the best ways to control your numbers. Call (08) 9367 4199 or email us at [email protected].​