Finance systems

It is important to have good systems in place for managing your business finances, so they support your operations.

​As a business operator, you should set up bank accounts and financial processes separate from your personal accounts.

It is important that you invoice your clients correctly, for your tax purposes as well as theirs.

Setting up an invoicing process to manage your debtors – the people or businesses who owe you money – will help you collect due payments faster, maintain your cash flow and prevent bad debts. If you are experiencing or concerned about bad debtors and collection of funds owed to you visit debt recovery.
  • Bank accounts

    Setting up a business bank account will allow you to track and control your business expenses and income.
     
    The fees and conditions attached to business accounts vary between banks, so you may wish to speak to your accountant or business advisor about your needs, then examine the different banks’ offerings to choose which is best for you and your business.
     
    Most businesses include online banking options among the factors that will help them manage their cashflow and operations.
     
    You should consider the best products for you, which may include:
    • a business account
    • online banking
    • credit card
    • Bpay
    • overdraft
    • a cheque book
    • payroll processing.
     
    You should also consider how you want your customers to pay you, and set up the processes that will allow this to occur. Your business advisor should be able to help you understand the common practices for your business sector.
     
    You should also arrange to meet a representative of your chosen bank so you have a personal contact who can help you with your business banking needs.
  • Accounting systems

    The success of your business will depend on you being able to track and monitor your cash flow, so you’ll need reliable accounting systems.
     
    While some businesses continue to use manual (paper) record-keeping systems, most businesses today prefer electronic systems that allow them to make use of specific software for various business needs, including providing the statements and reports that show your status and progress.
     
    Electronic record keeping will help you:
    • record income, expenses, wages, stock and other transactions
    • maintain your records without requiring physical space
    • decide how and when you’ll record a sale – is it when you invoice a customer or when you’re paid
    • generate orders, invoices, reports, statements and payroll details
    • arrange and meet your tax requirements.
     
    If you choose electronic systems you should ensure you have the appropriate IT software to back up your financial records, as well as other electronic aspects of your business.
  • Invoicing customers

    If your business is registered for GST, your invoice should be labelled as a ‘tax invoice’. It should state the GST component of each item and the total.

    If your business is not registered for GST, your invoice should not include a taxable component and should be referred to as an ‘invoice’.

    If you are expecting a payment from the South Australian Government for work you’ve provided, you can track your payment on the Shared Services website.

  • Payment terms and conditions

    By invoicing your customer, you are giving them time to pay the debt they owe you for goods or services you have provided. The terms you offer your customers will have an impact on your cash flow and your capacity to pay your own debts, including to suppliers and your bank.
     
    It’s important that your terms and conditions meet your business needs. You should provide your customer with your terms and conditions in writing, to avoid the possibility of misunderstanding or disputes, and help you manage your cash flow.
     
    Your payment terms and conditions should:
    • outline how and when you expect payment
    • outline any penalties for late payments, including the rate of interest and fees
    • disclose any additional fees that may apply to payments, such as credit card fees
    • be clearly included on all quotes, estimates, contracts and related documentation.
     
    It is good practice to have customers accept your terms and conditions in writing before you begin your transaction.

Planning templates

Use these free planning templates and guides to help you better plan, prepare, manage, and exit a business. Investing time into proper research and planning can help turn your ideas into reality, and prepare you for what’s to come.

Business plan

A business plan works as a guide when your business is operating; how you operate, planning the future and preparing for risks. It is also often a required document for finance applications.

Marketing plan

An effective marketing plan can help you set clear, realistic and measurable marketing objectives for your business. It can boost your customer base increasing your bottom line.

Emergency plan

Your business is critical to your financial wellbeing, so you’ll want to protect it as much as you can against emergencies and disasters.

Succession plan

Planning for the day you leave your business is a valuable investment.

Our friendly team is here to help

If you need any assistance, please call 1300 142 820 for information relating to small business or visit our contact page for more information.