Small business owners in Australia are stressed out, overworked and struggling to keep the ATO off their backs, a recent article by the ABC has found. If you lay awake at night wondering how you’ll pay your bills on time, whether you will ever get paid for that big job you did last month, or worrying about how high the paperwork is piling up, then you’re not alone. But you can rest easy because this month we’ll go over these issues and some ways you can tackle them. Read on to find out more.
1. Trouble Paying Suppliers on Time
The reports feature available in your accounting software will help you keep track of what you owe - in particular, the Unpaid Bills Report and Aged Payables Report are useful for showing you what is due and when. Check in with these reports regularly so that there are no nasty surprises.
QBO Accounts Payable Ageing Details Report
Take advantage of any pay on time discounts. Utility providers tend to offer a significant discount if you pay by the due date so make sure you prioritise paying these bills if you can.
2. Not Getting Paid on Time
Invoice straight away. The best time to ask for payment is when the work you have done is fresh in the customers mind. This way you won’t be forgotten about, your invoice is less likely to go missing, and it is more likely that the customer will pay quickly when they are freshly enjoying a job well done. QBO makes creating invoices very quick and easy so there is no excuse not to get that invoice emailed off before you’ve even left the site!
A sample invoice from QBO that took literally 2 minutes to put together, ready for sending!
Make clear payment terms - make sure that your customer knows exactly when your invoice is due for payment so there can be no confusion when it needs to be paid. Sometimes a shorter payment term than the standard 30 days can encourage prompt payment.
Send reminders for overdue invoices - this is a really quick and easy way to gently remind your customers that they have yet to pay.
The hassle-free way to remind your customers about their overdue bills - simply send a batch email reminder to anyone who has an overdue invoice.
Make payment easy by offering online payments. Set up your accounting system to accept online payments so that the customer can pay right from their invoice.
A sample email with the ‘Pay Now’ button for instant payment - this one is from Xero but QBO has a similar feature.
3. Struggling to Meet Tax and Superannuation Obligations
Lean on the ATO for help - if you are having trouble you can call the ATO. Believe it or not, there are a number of different ways they can provide assistance - more info on how they can help here.
If you’re having trouble understanding your obligations, then the Business Assistance Program might be for you. If you are eligible for the program, you can register for it here.
4. Drowning in Paperwork
The easiest way to reduce your paperwork is by moving to an online accounting software package, like QBO, Xero or MYOB. Take advantage of their many features that can reduce the headache of a desk (or office) full of untouched paperwork.
Receipt Bank can help you keep track of all of your receipts and bills - simply upload them through the handy smartphone app as soon as you receive them so they don’t go missing. Receipt Bank works with QBO as well, so it can automatically upload them on QBO for you.
Let a bookkeeper do the work for you - if it’s getting too much and you’d like to get your work-life balance back in order, consider getting a bookkeeper to help you manage it all.