Being fashionably late is great if you’re going to a party.
When it comes to paying the ATO or creditors, the same thinking doesn’t apply. Your business needs to have solid foundations of financial strategy and financial control. If it doesn’t, there will be a flow on effect on the financial administration of your business.
Our experience shows that businesses whose financial administration is poorly run will be:
• Behind in their ATO compliance
• Habitually late paying creditors
• Rarely collect debtors in line with terms
• Frequently paying late fees and penalties
This can result in ATO payment plans and garnishee orders, payment demands, squeezed cashflow and unnecessary costs. It can cause business owners sleepless nights or worse.
It’s not a glamorous part of business. But a good system of financial administration that is rigidly followed is vital to the ongoing success of your business. It means bank accounts are reconciled daily, debtors and creditors are paid within the agreed time frames and all other filing and compliance matters are complete.
Solid financial administration done well keeps your creditors happy, your debtors managed and your financial records in tip top shape. You can also be confident that your management reports will provide timely and accurate information.
It’s a pillar upon which you can build.