Invoicing Strategies For Getting Paid Faster…

The easiest way to ensure that your business receives the payments from invoices without delay is to remain transparent with your customers throughout the process. Getting an invoice paid on time starts with making it easier for your customer to pay.

Create Detailed Invoices

Create an invoice for your customers that includes the essential details and information about the job or service you have provided, and any additional information such as expenses that they might want to be included. Anticipating for these potential details may shorten the time it takes for your customers to pay.

Send Prompt Invoices

While it’s fresh in your customer’s mind, send out the invoice as soon as the work is completed to ensure they know what they owe. You can use alternative invoicing methods for your customers, such as electronic invoicing software or in-person with a mobile EFTPOS machine for quick and easy payments.

Invoice In Stages

Consider a phased approach to invoicing, particularly if your work is being conducted over extended periods. Splitting it over multiple payments allows the money to continue to flow in and could offset some of the risks to your business.

Allow Electronic Payments

Taking “pay now” credit card transactions can assist in speeding up payments from your customers. Consider adding a payment-add-on option (such as Stripe or PayPal) if sending your invoices electronically.

Make Payment Terms Shorter

Invoices with shorter payment terms get paid more quickly, with more businesses asking for payment within two weeks instead of the previous norm of thirty days. Discuss payment terms with your customers long before you get started to avoid confusion later on.

Put Systems In Place

Chasing down payments takes up valuable time and can be stressful. Consider employing a bookkeeper or accountant to assist you with following up on those overdue invoices or set up automatic reminders in your accounting software to be sent to customers as an invoice nears its due date.

How To Protect Against Fraudulent Credit Card Transactions

Streaming subscriptions, grocery shopping, click and collect. There’s so many ways now that your card or bank details can be used online to pay for goods and services. Those details may be stored by retailers, and the data that those retailers possess may be in danger of being breached.

That’s an ongoing risk of being an online shopper – the fear that somehow your card details will be leaked, or that a fraudulent transaction will appear on your bank statement. It might seem scary, but most banks and credit card companies have measures in place to ensure that you’ll be protected from breaches like that.

So what if you find yourself facing transactions that you certainly did not make on your bank statement? Here are some important steps that you should take immediately.

Call Your Card Provider Immediately

Most of the time, banks and card providers will notify you if they happen to notice something amiss with your account transactions. However, if the spending is in line with your usual habits, it might slip through the cracks by them. Notify your provider immediately when you discover the fraudulent activity, as this will prompt them to investigate the breach and issue you a new card.

Change Your Passwords

Be sure to review all of your financial accounts and change the passwords and pins for your bank accounts and cards. This should assist in keeping your accounts secure and away from the breach.

Monitor Your Card Statements & Credit Reports

Keep an eye on your transactions and statements for a few months after the fraud or breach occurs – it can take time for the charges to appear. You may then be able to approach the breach and resolve it without it impacting your credit score or your bank account.

Check Your Online Shopping Accounts

If the breach has occurred as a result of fraudulent activity with a card, it can be best to remove the card (and any stored cards) from your online shopping accounts in case they are no longer secure.

While anybody can be a victim of fraudulent transactions, nobody has to have their life or even their day ruined as a result of it. You can also help to keep your accounts safe and secure with strong passwords and regular monitoring.

Maximising The Benefits Of A Refinanced Home Loan

As interest rates drop to historic lows, a growing number of homeowners today are considering refinancing their home loans.

Refinancing is replacing your current loan with a newer one, or with a different lender, based on factors such as lower interest rates. These factors can bring down your monthly repayments and may even offer cashback bonuses, based on the lender.

Before making the switch, try and maximise the benefits you get from refinancing your home loan through these methods.

Negotiate

Before making a decision, consider talking to your current lender about your refinancing plans to see if they discount your interest rates to keep you as a client. Negotiations may be in your favour if you have at least 20% equity. Equity is simply the difference between the value of your property and the amount you owe on the home loan. The quicker you can boost your equity, the stronger your bargaining power will be financially.

Ensure that your loans are of a similar length to your current ones. Some lenders may offer discounts on interest rates for long-term loans, which could mean that you pay more as interest for a longer period of time.

Compare Fees

It can be useful to use online tools to compare home loans or engage a qualified mortgage broker to help you gauge the home loan options available in the market. A broker may be able to offer recommendations that are tailored to your income, expenses and other financial habits.

It is essential to understand your financial capabilities before you decide to switch. If you were on a fixed-rate loan, you may be charged a break fee, which can be very high if the interest rates have dropped since you’ve taken the loan. Termination fees, switching fees and application fees are additional costs that can make refinancing an expensive affair.

Lender’s Mortgage Insurance

You may have paid a higher Lenders Mortgage Insurance (LMI) if you had less than 20% equity in your home. This can drive up switching costs and outweigh any benefits you may get from lower interest rates. Consider asking for a refund of some of this amount from your current lender, if you decide to switch, to offset the loss of hefty LMI costs.

Reduce Your Risk

Finally, it is important to present a persuasive application to the lender of choice. Lenders want clients that are low-risk, who can afford to meet their loan repayments. Ensure that your credit record is a strong predictor of your commitment to paying off the loan. Think about cancelling or at least lowering your credit card limits. Having a high credit limit can shave chunks off your borrowing capacity, as you pose the risk of exceeding a high credit limit that may threaten your home loan repayments.

How To Save Better With Habit-Building Tips

How you spend your money determines how well you can save your money. Spending more than you have or buying unnecessarily can severely impact how efficiently you can save. Sometimes you aren’t even aware of the small habits that limit your savings capabilities. Here are a few bad money habits that are getting in your way.

Not Having A Budget:

Spending substantial money each month on purchases and experiences adds up. Not preparing and sticking to a budget is a common mistake, as many people believe a budget isn’t necessary for their lifestyle and income. Regardless of how much you earn, individuals need budgets to know where their money goes and what needs to be set aside to achieve their goals.

Eating Out:

Dining in restaurants or grabbing takeaway most nights in the week is a good way to deplete your finances. Save money by eating out for one or two nights and cooking the rest of your meals in bulk at home. Food preparation will help on those nights when you don’t want to cook and stop you from ordering food.

Impulse Buying:

Purchasing items without a second thought is an easy way to lose money. An excellent way to avoid this can be to ask yourself if you are buying something because you ‘want’ it rather than if you ‘need’ it. Learn to recognise when you do the action and force yourself to wait. You can then consider if you have the extra money to spend on that item, giving you time to think about your decision properly.

Credit Cards:

A credit card is an easy way to spend money you may not have. Living beyond your means is a fast way to fall into debt and is one of the worst things you can do for your finances. Remember, if you don’t pay the card in full each month, every dollar you put on a card will cost you many times more in interest charges. Avoid this problem by thinking of your credit card as an emergency-only option.

Prevent Becoming A Cryptocurrency Scam Victim

Scams are everywhere, so it’s likely most people have either encountered a scam themselves or know someone who has.

A common scam that has been doing the rounds, for instance, is the ‘Hi Mum’ text, via which the scammer contacts the mark and requests money to get home or fix a phone, etc. In 2022, investment scams were a leading cause of financial loss in Australia.

Identifying A Scam

An investment scam can be identified by promises of big payouts, guaranteed returns or quick and easy money.

If you have been approached with something that sounds too good to be true, such as an investment opportunity that promises high returns for little to no risk, it’s likely to be a scam.

Cryptocurrency scams are the most popular type of investment scams, and the most common contact modes are phone, SMS and email. It is very difficult to identify legitimate cryptocurrency investments from scams. Scammers take advantage of the hype and the less regulated environment to ‘invest’ in Bitcoin or another cryptocurrency on your behalf.

Before you invest, you should ask yourself if you are willing to lose some or all of the money you have invested and know that if you go ahead, you are investing with little or no protections behind you. You should also examine the current market, and determine if the risk is worth the potential returns.

How Do I Prevent Being Scammed? 

The number one way to prevent scams is by raising awareness and discussing them with your family, friends, colleagues and clients. This is because many people who experience a scam never report it to anyone – they feel ashamed they fell for a scam.

Talking about scams removes this stigma and spreads awareness. It can also help people get out of them sooner rather than later if they are already in one. Some other simple steps you can take to protect yourself and your business are:

  • Never give any personal information to someone who has contacted you.
  • Don’t click on hyperlinks in text/social media messages or emails, even if it appears to come from a trusted source.
  • Go directly to a website through your browser. For example, to reach the MyGov website, type ‘my.gov.au’ into your browser
  • Never respond to unsolicited messages and calls that ask for personal or financial details, even if they claim to be from a reputable organisation or government authority — just press delete or hang up
  • Never provide a stranger remote access to your computer, even if they claim to be from a company you use.
  • To verify the legitimacy of contact, find them through an independent source such as an online search or past bill.
  • Hang up and verify the identity of the person contacting you by calling the relevant organisation directly — find them through an independent source such as a phone book, past bill or online search.
  • Search for reviews before purchasing from unfamiliar online traders.
  • Be wary of sellers requesting unusual payment methods such as upfront payment via money order, wire transfer, international funds transfer, preloaded card or electronic currency, like Bitcoin.
  • Verify any request to change bank details by contacting the supplier directly using trusted contact details you have previously used.
  • Consider a multi-factor approval process for transactions over a certain dollar amount.
  • Keep the security on your network and devices up-to-date, and have a good firewall to protect your data.

Don’t Sour Your Relationship: Appropriate Billing Practices To Use On Clients

Good client relationships are crucial to the success of a business. However, the billing practices that are in place can sour a good client relationship if they are outdated. This is applicable to most kinds of business, including but not limited to professional services, trade professionals or the hospitality industry (for example).

Billing systems should be innovative and focus primarily on the needs of the client. For clients, it is not so much about the process as it is the result that they are paying.

Clients expect a total fee estimate of the service being provided. Once the fee is accepted, the client expects to pay this amount. Presenting an invoice that totals much more than what has been quoted without prior warning can trigger the client’s move to someone else who can offer the same service to them. Providing the type of fee and cost information in a quote before you start an engagement can help avoid “client invoice shock”.

Another common complaint is when the client does not understand the bill. Some bills either lack sufficient clarity or contain too much confusing detail. The client must be able to evaluate the work done for the fee charged and the bill must stack up with your original fee quote. If a bill does not match what was stated in the initial proposal, quote or engagement letter, then you have a serious credibility problem on your hands.

Essentially, there should be no surprises when it comes to billing your clients. Clients expect good service and reasonable fees based on sound professional practices. If you have delivered what you promised and your total billings are in line with what your original quote, the client will nearly always pay your bill without question.

New Year Resolutions For Cash Flow Management

Poor cash flow management is one of the main reasons 50% of small businesses fail during their first five years. For small businesses that have faced challenges over the last few years, that might seem like a scary statistic.

But cash flow management doesn’t have to be complicated.

Setting clear targets, promptly invoicing clients and putting the latest technology to good use in the business can be simple but effective means of managing cash flow for small businesses.

Here are three simple methods you can employ in your small business to manage cash flow for your business.

Send Out Invoices Quickly

By promptly sending out invoices to your clients and customers, you are avoiding delaying the payment. There might be roadblocks and delays in receiving payment that can’t be controlled on the client’s end, but avoid adding to them by waiting to send out your invoice. Make time in your week to create and send out invoices to bring in the cash as soon as possible. You may even want to set aside a day in the week or fortnight to action invoice deliveries.

Offer Different Payment Options

Avoid making payment an awkward and time-consuming process for you and your client by giving them plenty of options for paying. Cheques, Eftpos, paying online, or even cash can be valid methods of payment – and some are a lot quicker than others. Work out what works for your business and your customers.

Keep Detailed Records Of The Business’s Cash Flow Situation

Unless you keep maintained and accurate records, it’s unlikely that the cash flow situation of the business will be clear to see. Keep detailed financial records to refer back to, such as how many invoices are currently being processed and what bills need to be paid.

What To Do Before Renewing Your Insurance Policy For Your Business

Many businesses simply renew their existing insurance policies each year. This can be a costly mistake.

You may be paying unnecessarily high premiums based on outdated information, miss out on a better deal that has become available, or may be failing to cover your business against new risks that have arrived with growth.

Here are some things to consider before you next update your insurance policy.

Using A Broker

Deciding whether or not to use an insurance broker is an important decision. Brokers are expensive and for a small business with very straightforward insurance needs, this can be an unnecessary expense.

However, the more complex your business is, the more likely you are to benefit from the expertise of a broker. A good broker is aware of which insurance companies excel in specific areas and will be able to customise the best possible package of products to suit your needs.

It is also common for brokers to be influential in persuading an insurer to approve your policy. If you are a member of any professional association it is a good idea to seek out any recommended brokers.

You may benefit from an associated discount, and the broker will likely have a sound understanding of needs specific to your industry.

Recording Your Assets Accurately

Ensuring that the information you provide to your insurance company is completely up-to-date and includes all your relevant information is extremely beneficial. Regularly cross-checking your list of assets with what you have will ensure that you are paying manageable premiums to cover things you no longer own.

Consistently updating the value of assets that are depreciating will also help to bring down your premiums. For example, it is common for businesses to be paying to cover the value of a brand-new car when its value is now significantly reduced.

Good Risk Management

It is well known that a robust risk management plan is the best way to protect your business. Many businesses overlook that a good risk management plan can significantly reduce your insurance premiums.

If you have updated or improved your risk management systems, you should let your insurance provider know, as it may change the risk category in which you are placed.

Additionally, over time a good safety record will significantly reduce your premiums.

What Impact Could A High Interest Rate Have On Your Debt Payments?

If you’re looking into making investments or purchases, such as a house, you may have been hearing a lot about interest rates.

Interest rates are the fee that you are charged for borrowing money, which is expressed as a percentage of the total amount of the loan. Often they are discussed as a key indicator of how the economy is performing – but how do interest rates affect you?

Whether an interest rate rises or falls is determined by the RBA (Reserve Bank Of Australia).

The primary objective of the RBA is to ensure that the price growth (inflation) remains low and stable, by using its monetary policy to achieve that specific outcome.

The monetary policy primarily involves either increasing the cost of money (through interest rates) to slow the economy down, or lowering the cost of money to encourage spending.

For many Australians, rises in interest rates can affect their mortgage repayments, loans and credit cards. If the interest rate rises too drastically, that can make for a difficult time. A lower interest rate can instead lead to a respite for those making repayments as they can lower the amount required to be paid, or provide an opportunity to get ahead on the mortgage.

An increase in interest rates:

  • Increases the cost of your mortgage interest payments
  • Reduces the personal disposal income available to you
  • Increases the incentive to save, rather than to spend
  • Strengthens the value of the Australian dollar
  • Reduces consumption and investment

A decrease in interest rates:

  • Makes mortgage interest payments more affordable
  • Increases personal disposable income
  • Encourages spending
  • Weaken the value of the Australian dollar
  • Encourages investments in property.

When it comes to interest rates, knowing if they are forecast to rise or fall will allow you to adapt your payments better, and help to plan out your strategy to deal with the impact. You can speak with a financial advisor, or come to us if you’re looking for advice on how to handle the impact that interest rates may have on your plans.

How To Make Your Bank Account Work For You – Simple Tips For Financial Growth

Banking is often more complicated than you expect it to be with different types of accounts, fees and fine print to take into consideration. You are able to get more out of your bank account if you pay closer attention to certain details.

 

Re-evaluate Your Bank – Is It Still Suitable?

Due to the competitive market space, new offers that might be much better suited to your needs than the 10-year-old bank account you are using may be available. Keep a lookout for these offers so that your bank account is helping you put more money into your pocket.

 

You should also consider changing accounts if your bank is asking you to pay high fees or requires a high minimum balance. You may find that other banks are offering better options or attempt to renegotiate the terms of your account with your current bank.

 

Don’t Assume Your Bank Is Giving You The Best Interest Rate

Your bank may not be giving you competitive rates and assuming that they will do right by you lets them get away with this. Make sure that you keep up to date with different types of rates and what they should be. Discuss these with your bank and how they might be able to give you more competitive rates to the ones you are currently receiving.

 

Plan Interactions With Your Bank Strategically

Other than when it’s regarding an urgent matter, plan interactions with your bank ahead of time. For example, if you need to visit the bank about your mortgage, aim to have a mortgage specialist with you, this will ensure that you get the best out of your visit.

 

You may be able to resolve your request by calling the bank. In this case, aim to call in off-peak hours to reduce waiting time. Before you call, make sure you’ve checked whether the bank has provided an online method to complete the process.

 

Forgotten Bank Cards And Accounts Can Be A Money Burner

Carrying a spare credit or debit card is okay as long as you aren’t being charged annual fees on it. If you find that you rarely use the card but it has a high annual fee, it might not be worth continuing to pay for it.

 

The same applies for bank accounts that you may not be using, or using rarely. Banks may charge a dormant account fee if there is no activity in the account over a period of time (check details that apply to your bank). However, using your bank account every few months should be enough to prevent dormant account fees from being charged.

If you’re in need of assistance with financial planning, we are equipped to help you with advice, strategies and general information that could benefit you.