Tips on managing your small business finances

Do you run your own business? According to the Australian Bureau of Statistic as of June 2023, there were more than 2.5 million active businesses in Australia, from sole traders to large corporations1. But over the preceding year, Australian businesses had an exit rate of 15 per cent1.

Handling your money efficiently can be crucial, especially in the crowded Small to Medium enterprise (SME) market. But how do you make sure you effectively manage your small business finances?

Keep the books in order

The Australian Taxation Office requires that you keep your business records in order, easily accessible and legible, for at least five years2. The paperwork you have will vary from business to business and will generally include:

  • Profit and loss statements
  • A balance sheet
  • Statements from your business accounts and credit cards
  • Records of payments to employees and any PAYG tax
  • Invoices and receipts for goods and services, both bought and sold
  • Register of assets and stocktake details.

You may also like to consider collating your business cash flow with a profit and loss forecast for your financial year. There could be plenty of paperwork, but staying on top of it may help you efficiently do your taxes, see exactly how well the business is doing and could assist in providing insight for your next big business decision.

Work out your limits

As you would when buying a house with a home loan, SME’s with limited access to capital may need finance such as a business loan for a new site expansion or company growth may help with your future plans to expand your small business.

What factors should you consider?

Try to consider all of the variables. What kind of assets do you have as security for a business loan, and how much are they worth? What repayments can you feasibly afford over the set term? What's your loan value ratio, and how big a deposit will you need? At IMB, we have a wide range of business finance products and services that cater to businesses both small and large. Our personalised service means we can help you find a financial solution that may fit your business needs.

Enquire about a loan to help fund your small business growth

Find out more about Running a Business

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Important Information


1. Australian Bureau of Statistics

2. Business Victoria

This article has been prepared by IMB Bank and contains general information only. It is not intended to be relied on as advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, financial, taxation or other professional advice before you make any decisions about your business. Consider the relevant Terms and Conditions or Product Disclosure Statement and Target Market Determination available here before deciding whether to acquire any products or services offered by IMB Bank. Lending criteria, terms and conditions, fees and charges apply to IMB loan products.  

IMB Bank does not recommend any third party products or services referred to in this article and we accept no liability in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites.