5 ways to ensure that your sme business is on top of its financials!

5 WAYS TO ENSURE THAT YOUR SME BUSINESS IS ON TOP OF ITS FINANCIALS!

June 10, 2025

BACKGROUND

Running a small business can be both an interesting experience and also a financially rewarding journey, however ensuring you are ‘on top’ of your financials is key to your long-term success.

SO – whether you are just starting out or looking to grow and scale your business, here are five practical steps you can take to ensure your business remains financially in the BLACK !


KEY STEPS

1. Keep Accurate and Up-to-Date Financial Records

Good financial decisions start with good data and information.

Use accounting software like QuickBooks or Xero to keep ALL of the records of you sales invoices, expenses, overheads and bank activity up to date.

Complete and check your bookkeeping work each week and month, catch any errors early and know how much cash you have in the bank at all times !

2. CASH is KING – so constantly monitor your Cashflow

Cash flow is the lifeblood of any business.

Even profitable companies can run into trouble if cash isn’t managed correctly.

Ensure that Quickbooks or Xero are showing the correct cash figures in your accounts, carefully track your cash inflows and outflows and always look for the underlying reasons for slow receipt of cash from customers.

Also where possible start to forecast your across the next 12 weeks !

3. Separate Business and Personal Finances

Mixing personal and business finances can lead to confusion, tax problems (for you) and poor financial decisions.

Ensure that personal spend is kept away from your business (unless expense reimbursement) so that ONLY the costs of running the business are included in the financial information being provided to the decision makers each month or quarter.

4. Prepare and actively use your Budget

A realistic budget helps you control spending and also keep to your sales/income targets during the course of the year.

Remember to have it completed by the START of your financial year, and then use it as a comparison with the actual performance of the business.

This allows you to take ACTION during the course of the year to manage costs, track staff costs and also understand why the income is up or down for a particular month etc

5. Use your Accountant

Even if you’re financially savvy, consulting with your accountant will provide value with properly setting up or configuring your Quickbooks or Xero software, implementing practical weekly or monthly bookkeeping ‘best practices’ across your business or assisting with specific queries on pricing, business costs or tax deductible expenses.


FINAL THOUGHTS

Keeping on top of your financials doesn’t happen by accident—it’s the result of consistent, routine, processes.

By implementing these five strategies, you will stay on top of your financials and able to make good decisions on your business!

Do you need some advice or guidance with any of the 5 steps for your own business?