Running a business

Effectively managing finance and cash flow is a very important part of running a successful small business. The SmallBiz website links below will give you an overview of some of the important concepts you should understand.

• The financial plan
  The financial plan should relate to the business plan and should list the key financial objectives which are essential for your business to achieve.
• Budgeting and forecasting
  Budgeting and forecasting is very important for the small business owner. Knowing how much money can be spent and on what is the most important thing for a small business to stay afloat.
• Record-keeping
  Running a business requires good record keeping.
• Break-even
  A business reaches breakeven when its income exactly equals its expenses, resulting in $0 net profit.
• Ratio analysis
  Ratio analysis is an effective way to understand the financial performance of a business. It involves calculating and analysing a series of financial ratios based on financial statements.
• Variance analysis
  Variance analysis is the practice of reviewing the difference or variance between actual financial performance and budget/forecast figures.

The Small Business Tool Kit features finance and cash flow information directly related to running a business. You can also visit the finance module for specific information, case studies and videos about a broad range of important financial management issues.

More information

To find out more about running a business visit the SmallBiz website or Small Business Tool Kit.