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Cashflow Series: 5 Tips to Manage and Improve Cash Flow in a Small Business & Instant Write-off Update

Cash flow management is key priority for any business. Effective cash flow guarantees that businesses continue operating with adequate funds for growth, as well as the means to pay salaries, suppliers, and bills on time. It is crucial to meet your financial obligations, and having low cash reserves causes stress on any business.  

Fortunately for Aussie business owners, the Australian government has recently announced an update for instant write-offs, meaning eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used (or installed ready for use)Below, we’ll discuss how to best utilise these instant write-offs for your business, in additional to several of our other top cash flow tips. 

 

What is the update for instant writeoffs? 

An instant write-off allows small businesses to claim immediate deductions up to a given amount for new or second-hand assets purchased, such as office equipment, vehicles, and other tools. In light of the COVID-19 and impact on Australian businesses, as of 12 March 2020, the instant asset tax write-off has been raised to $150,000 (up from $30,000) for those with an annual turnover of less than $500 million (up from $50 million). This is providing the asset was purchased by 31 December 2020, and first used, or installed for use, between 12 March 2020 until 30 June 2021.  

The amount you can write-off will depend on when the asset was purchased and the associated threshold amount (the cost of the asset must be less than the threshold). It is important to note that the cost of the asset includes both the amount you paid for it and any additional amount spent on transporting the asset, improving it or installing it for use. To see your eligibility, you can check the ATO website for further details. 

 

Cash flow Tip #1 – Take advantage of the instant write-offs 

Always be sure to consult with your accountant or tax advisor to assess how an asset will benefit your business before purchasing. However, you should be sure to make the decision based on the needs of your business if you’re considering taking advantage of the instant write-offs. Would this purchase be in line with your business plan? Do you have enough cash flow to support the purchase/s? Can you have the asset either operational or ready for use in this financial year? If so, now may be a wise time to purchase in terms of staying cash flow positive. A good example might be purchasing a vehicle for deliveries to expand your business operations to help achieve your business goals. 

 

Cash flow Tip #2- Use Credit Cards to Make Payments 

There are other strategies you can employ to improve your cash flow. Namely, using your business credit card to cover expenses that you would normally cover with cash or cheque, you can free up additional cash for the costs that can’t be covered by card. Extending your cash flow becomes a whole lot easier when you are able to take advantage of your card’s interest-free days, which means you can make payments in advance of receiving funds if necessary. Provided the balance is paid off by the end of the interest-free period, you’ll be able to stay on good terms with your suppliers even while extending your cash flow.   

A business credit card can also be helpful for spreading out large business expenses while keeping finance costs low. This can often work out to be more cost-effective than an up-front financing plan with a business loan. Having more money accessible and in your account day-to-day sets you up to more efficiently be able to cover unforeseen costs and to expand your business. 

Additionally, many credit cards offer rewards programs, which can help with business expenses. You’ll be able to use rewards points to pay for a range of business expenses and may even receive extra bonus points for certain types of purchases.  

If you sign up to make payments with B2Bpay, you’ll be able to pay ALL of your bills using your credit card (as well as by debit card or bank account), regardless of whether or not the biller accepts card payments. With B2Bpay, you’ll also earn Qantas Points or Credit Card reward points from your card issuer on all business bills paid, including full points on payments for ATO, government, telco and insurance. With many cards, you’d earn no points or reduced points when paying these expenses directly. And in addition to boosting cash flow by taking advantage of your card’s up to 55-day interest free period, you’ll save money with digital payments because of the reduced paper-based processing, admin, approval overheads and banking costs. Sign up to start making payments with B2Bpay here 

 

Cash flow Tip #3- Get Paid on Time 

Many businesses have a high percentage of their monthly revenue held up in accounts receivable. Ensuring a strategy for steady cash flow is crucial for having sufficient cash on hand to pay bills and suppliers on time, as well as to maintain employee salaries and purchase new capital assets.  

If you want to ensure you’re getting paid faster and on time, offering an online card payment option is essential. Offering multiple digital payment methods gives your client more options, such as payment by debit card or bank account, allowing clients to take care of payment easily and instantly. 

When accepting payments through B2Bpay, you’ll reduce payment chasing, and be able to get paid online, 24/7, at no cost to you. ‘ Pay Now’ link on all your invoices will enable you to get paid and as all your invoices will be linked to a branded payment page, where your customers can pay you online, faster with any card. Payments will be made using your customer’s nominated card, and funds will be transferred to you by EFT or BPAY within 3 business days. Plus, you’ll earn Qantas Points simply for getting paid on eligible business payments. Click here to start receiving card payments from your business customers.  

 

Cash flow Tip #4: Utilise Accounting Software 

Accounting software allows you to track your cash flow and easily streamline your payments, all in one place. Speed up cash inflows by emailing invoices directly from your accounting software, using a mobile app to process bills on the spot, and regularly check accounts receivable. You can slow down cash outflows by automating tasks, such as setting reminders for bill payments and automatically invoicing regular customers. 

B2Bpay offers integrations with XeroQuickbooks, and MYOB to allow you view all of your invoices in B2Bpay to click + pay, pay all of your invoices using credit card, and save time with automatic reconciliation. Find out more about our software integrations here. 

 

Cash flow Tip #5: The Big Four 

There are four key factors to take into account when managing cash flow, which include: staff hours, improving sales, managing inventory, and managing costs of operation.  

If you have a physical location where you sell a good or service, a temporary reduction on operating hours can help save cash in both overhead expenses and also payroll. You might also consider postponing any outsourced work, or temporarily reassigning this work to employees to complete.  

Effective inventory control can also boost your cash flow, as holding too much inventory stock ties up cash that could be invested in other areas of the business. To avoid a loss of sales, be sure to provide adequate stock to align with customer demand. Inventory software will allow you to review previous sales trends in order to determine which items are most popular vs those that are slower-moving, and provide clear indication as to which inventory you should stock up on. It might also be a prudent choice to investigate if you can get any inventory cheaper, or if you buy in bulk if you can get a reduced cost. A lot of business owners can set and forget inventory, missing out on a valuable opportunity to save on expenses. 

When it comes to reducing costs of operation, begin by cutting overhead waste. Review your software and subscription fees, energy costs, etc. Consider offering part-time or virtual work options to downsize your physical office space. And audit your supplier agreements, to see if you can negotiate more favourable deals.  

 

Cash flow BONUS Tip #6: Seek Professional Advice 

Consult and speak with a financial adviser prior to starting a new business. Small business owners often find themselves responsible for taking on many different roles and acting as the virtual head of a variety of different departments. Aexperienced financial advisor would be designated to help assess the viability of your business model and outline new strategies and timelines to meet your goals and accelerate your business’ growth and success. They can make help you to make your business more efficient and profitable by focusing on actions that deliver results. Plus, they will prepare your business for future developments and different phases of business growth, allowing you to handle these new challenges confidently. 

While no single strategy works for every business, choose one (or several!) that best suits the needs of your brand. Adopting a new approach may very well get your cash flow up to speed, allowing your company to survive and grow even during times of financial instability.  

To use B2Bpay to save money and get paid on time, be sure to reach out to our locally based Sydney team at 1300 205 575Or, click here to sign up for B2Bpay for free.

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How to Pay Your BAS and Earn Credit Card Points

For business owners, it seems that tax bills to the ATO are always just around the corner. With payments such as BAS, business owners may find themselves wondering if it’s possible to earn points on these mandatory transactions. The good news? While many major Australian banks have stopped awarding frequent flyer points for credit card payments to the government, it is still possible to earn Qantas Points and full credit card rewards points for paying tax using a payment service such as B2Bpay. 

 

How do I pay the ATO by credit card? 

B2Bpay is a bill payment service that allows you to pay almost any business expense, including the ATO, by credit card. You can use Visa, MasterCard or Amex, so if you have a pointsearning credit card, you will earn full points for the transaction as most credit careds provide no or significantly reduced points when you pay your tax directly to the ATO. 

The fees associated with paying the ATO vary based on which card you use, so make sure you use the chart below to identify exactly how much you’ll be charged in credit card fees. For instance, the fee for Amex is 1.45%, which is notably higher than other domestic cards.  

 Card  Fee 
 American Express  1.45% 
 MasterCard – International  2.70% 
 MasterCard – Domestic Debit   0.15% 
 MasterCard – Domestic Credit       0.70% 
 Visa – International  2.70% 
 Visa – Domestic Debit  0.15% 
 Visa – Domestic Credit  0.78%

Why should I pay the ATO with credit card? 

There are several major benefits to consider when it comes to paying ATO by credit card: 

1. Earn Reward Points 

With B2Bpay, you’ll be able to pay the ATO while earning FULL credit card points. Credit Card providers offer reduced or no rewards points, so with B2Bpay you can earn credit card points than if you paid directly, without paying an additional credit card processing fee. Plus, you can receive Qantas Points on top of that, helping your reward points accumulate even faster on tax you must pay. On the other hand, if you were to pay directly you wouldn’t have the ability to earn any points at all. 

2. Cash flow 

In addition to earning rewards points, paying the ATO by credit card means you’ll have money available in your bank account for longer. You can hold onto your cash during the interest-free period on your credit card, and it won’t cost you any interest so long as you pay your credit card bill on time. This can also help you to avoid late payment fees or interest charges on other business expenses if you don’t have the cash available for the due date. 

3. Credit card fees are tax-deductible 

When paying the ATO by credit card, you can claim your credit card processing fee as a tax deduction for your business, which helps offset the additional cost of paying by credit card. It is important to note that any interest you pay for late credit card payments is generally not tax-deductible. Learn more about claiming your processing fee as a tax deduction here. 

4. Credit history 

Paying your business bills by credit card can be beneficial for your credit history, given you make sure to pay your credit card bills on time. This can open you up to reduced interest rates on loans, different types of financing and better selection of credit card rates and rewards. 

 

Additional Benefits of B2Bpay 

In addition to B2Bpay making it possible to pay a variety of expenses while earning both credit card and Qantas points, B2Bpay offers even more great business benefits. 

Boosts business cash flow 

B2Bpay enables business owners to access the credit card interest free period for expenses they may have otherwise paid for using cash, cheque, or direct debit. You’ll be able to keep funds in your account for longer while paying your suppliers and other business expenses. 

Reduced cost 

Digital and credit card payments are far more cost effective than traditional payment methods, thanks to the reduced use of paper being processed, administration work, approval overheads and banking costs.  

Simple software integrations 

Manage all of your payments in one place by integrating your major accounting software (Xero, Quickbooks, MYOB) with B2Bpay. You’ll be able to view and pay all of your invoices, while taking advantage of automatic reconciliation. Further, your customers will love being able to pay with the simple click of a button included on your invoices. 

Saves time 

You’ll be able to cut out excessive administrative work from your workflow, as B2Bpay manages and pays all your business expenses online via a centralized expense management system. 

Secure, flexible online solution 

When using B2Bpay, cards are tokenised for security. This means your credit card information is never stored in full. And unlike traditional methods like cash or cheque, you’ll be able to make payments from any device, safely and securely. 

 

How this Business Benefited from Using B2Bpay 

To share firsthand the benefits of utilizing B2Bpay in your business, we spoke with one of our clients at Collinson’s Vacuum Packaging who saw a major shift in business over the course of 2020. We saw customers wanting to move into the retail space and take-home meals,” says co-owner Chris Collinson. “Suddenly they’ve got a new range of products, so we needed to help them with solutions and innovation.” 

 As much as Collinson’s Vacuum Packaging innovation is inspired by travel, with directors previously traveling internationally two to three times per year, the Victorian-based company has used the Qantas Reward Points earned through B2Bpay to make staff travel more affordable. During the course of 2020, they’ve been able to continue earning and saving these Reward Points to position them for affordable travel as borders continue to reopen. 

 

Sign Up for B2Bpay Today and Maximise Your Benefits 

Getting a B2Bpay account set up is easy, and free! Simply fill out an online activation form so we can verify business details. Then we will quickly set your payment portal and payment page, customised with your company brand logo. We will also arrange a payment link on your invoices. 

Click HERE to sign up for free. Alternatively, you can speak directly to our Sydney-based B2Bpay customer support team by contacting us at 1300 205 575. 

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How to Earn Qantas Points When You Get Paid Through Xero, MYOB, QuickBooks

Do you ever find that you are juggling multiple tasks and software systems while handling your business admin? Maybe you’ve had to manually enter data from one program to another to ensure it was recorded properly or copy information multiple times over. 

 While this type of tedious work is often necessary to get the job done, it also requires an immense amount of time. One of the most demanding responsibilities is no doubt recording and managing payments and expenses. What if you could connect your payment platform to the accounting application you already use? This would mean all the payments you make and receive would be automatically recorded in one location, with no manual entry required.  

 Well, we’ve got great news for you – this solution is available with B2Bpay by simply connecting your accounting software (Xero, MYOB, or QuickBooks)! Better yet, you’ll even earn Qantas Points every time you pay or get paid*. Who doesn’t want to earn points simply for carrying on with business as usual? 

What are the benefits? 

When you connect your accounting software, you’ll be able to seamlessly make or receive payments.  

Making Payments: Once you’ve integrated your software, you’ll be able to view all of your pending invoices in B2Bpay to pay in one click. You will also save time with automatic recording as when we pay, we automatically update your software so you don’t have to 

You can pay any business invoice using credit card, allowing you to earn credit card reward points for every dollar you spend^. Plus, you’ll earn up to bonus Qantas Points for every $1.50 spent#.  

Accepting payments: Accepting payments is just as easy. You will get paid faster by accepting credit card payments online, at no cost to you. B2Bpay will get you set up with a unique, branded payment page, and you’ll quickly be on your way to earning Qantas Points just for getting paid*. Customers will simply need to click the ‘Pay Now’ button on your invoices to be directed to your secure, branded payment page. Save time as your customer’s payments are auto-recorded in Xero, MYOB or QuickBooks and earn Qantas Points for getting paid.  

How do I integrate my accounting software? 

Xero 

 To integrate B2Bpay with Xero, you can follow the steps below or find more detailed instructions on our FAQ page: 

 Making Payments: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘My Xero Bills’ tab and click on the ‘Sign in with Xero’ button 
  • Once you have signed in, click ‘Allow Access’ 
  • Then click ‘Connect’ 
  • Choose a ‘Payment Account’ and ‘Expense Account’ from what you have configured in your Xero profile 

Receiving Payments: 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Then click on the ‘Xero’ tab on the righthand side 
  • Scroll down to the bottom and click ‘Sign in with Xero’ 
  • Once signed in click ‘Allow Access’ then click ‘Connect 
  • Choose a ‘Payment Account’ and an ‘Expense Account’ 

MYOB 

To integrate B2Bpay with MYOB, you can follow the steps below, or find more detailed instructions on our FAQ page: 

Making Payments: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘My MYOB Bills’ tab and click on the ‘Connect to MYOB AccountRight’ button to log in to MYOB 
  • Select the company profile from MYOB you wish to connect to B2Bpay 
  • Enter your MYOB User ID: this is your local MYOB username. If you haven’t set this up, type “Administrator” into this field. 
  • Then enter your local MYOB password. If you haven’t set up a User ID, leave this field blank. Click ‘Next’. 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Receiving Payments: 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Click on the ‘Connect to MYOB AccountRight’ button and log in to MYOB 
  • Select the company profile from MYOB you wish to connect to B2Bpay 
  • Enter your MYOB User ID: this is your local MYOB username. If you haven’t set this up, type “Administrator” into this field.
  • Then enter your local MYOB password. If you haven’t set up a User ID, leave this field blank. Click ‘Next’. 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

QuickBooks 

Making Payments 

To integrate B2Bpay with Quickbooks, you can follow the steps below, or find more detailed instructions on our FAQ page: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘Quickbooks Pay Bills’ tab 
  • Click on the ‘Connect to Quickbooks’ button and sign in 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Receiving Payments 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Click on the ‘Sign in with Quickbooks’ button 
  • Click ‘Connect’ 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Making and Receiving Payments is Easy 

Once you’ve signed up for B2Bpay and followed the prompts to connect to your accounting software, you will be all set to begin making payments. Business owners are amazed at how streamlined it is to view, select and pay all their pending bills in one place! To begin receiving payments, our team will have your personalised, branded payment page set up for you. Your clients will love how simple it is to make payments with the ‘Pay Now’ button included on their invoices. 

How Else Can I Maximise Points? 

  1. Pay all your business expenses by card using B2Bpay. B2Bpay allows you to pay all your expenses by card, regardless of whether your biller accepts credit card payments! You’ll be able to maximise your points earning potential and earn Qantas Points on all these essential payments*. 
  2. Earn FULL credit card points by paying ATO, Government, Telco, and insurance bills. With most credit cards you earn no or reduced points when paying these expenses directly to the biller. When you pay via B2Bpay, you earn full credit card points#. 
  3. NEW! Earn Qantas Points when you pay using your bank account. You can now pay by bank account with B2Bpay and still earn Qantas Points. Earn 1 Qantas Point for every $3 paid using your bank account*. Payments using your bank account give you more choice and flexibility especially when you have reached your credit card limit or want a cheaper (yet still rewarding) way to pay. 
  4. Earn Qantas Points when customers pay you by card…at no cost to you! By including a simple ‘Pay Now’ link on the invoices you sent out via Xero, MYOB, QuickBooks integrations, you can earn 1 Qantas Point per $20 paid to you via Visa or Mastercard*. Then sit back and earn Qantas Points when your customers pay you by card at no cost to you (unless you opt to pay the card processing fees). Get paid faster, as most customers prefer to pay 24/7 online. 
  5. Utilise your cards up to 55-day interest period by scheduling major payments after your card’s payment cut-off date. Credit cards come with a monthly payment cycle (e.g., 28th to the 27th) whereby all payments in that cycle fall onto the same credit card bill. So, when you can, pay large expenses just after your payment cycle to boost your cash flow and maximise the credit card interest free days you receive. 

How This Aussie Business Succeeded with B2Bpay 

You might be wondering what the benefits of utilising B2Bpay and its wide offering of software integrations looks like from a business owner’s point of view. So we took the opportunity to chat with one of our clients at Amaroo Technologies and discuss the success they’ve experienced using B2Bpay in their family-owned vending machine operation company.  

As a small business owner, Bob Goss has years of experience putting in extra hours at work, for little to no reward. Yet since using B2Bpay and integrating his accounting software, he has unlocked a world of rewards. For starters, streamlining his workflow and tracking expenses has never been easier.  

“I absolutely love the system. It makes it easier to follow everything I’ve been spending, and I can look at info about invoices that I paid just by clicking a few buttons. I love that all the info is matched automatically in my bookkeeping software.”  

Bob has also managed to accumulate tens of thousands of Qantas Points by paying his supplier through B2Bpay, while also growing his business! 

Get Started Now 

Getting a B2Bpay account set up is easy, and free! Simply fill out an online activation form so we can verify business details. Then we will quickly set your payment portal and payment page, customised with your company brand logo. We will also arrange a payment link on your invoices. Once you’re set up, be sure to follow the steps above to easily integrate your accounting software! 

Click HERE to sign up for free. Alternatively, talk directly to our Sydney-based B2Bpay customer support team by contacting us at 1300 205 575. 

 

Terms & Conditions 

# Use a points earning credit card to earn credit card reward points on every payment. Card products referred to are not issued by Qantas but by the relevant Card partners. The applicable Card Partner is the credit provider and credit licensee under the National Consumer Credit laws. Points are offered by the relevant Card partner and partner reward program and can only be earned on eligible purchases. Contact the relevant Card Partner for terms and conditions or enquiries. 

*A business must be a Qantas Business Rewards Member to earn Qantas Points for business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for B2Bpay customers  using this link. Membership and Qantas Points are subject to the Qantas Business Rewards Terms and Conditions. Qantas Points for business are offered under the B2Bpay Customer Terms and Conditions. Members will earn 1 Qantas Point for every $7 paid to the ATO by card, 1 Qantas Point for every $10 paid to all other billers by card, and 1 Qantas Point for every $3 paid to a biller by bank account. Members can also earn up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers.See B2Bpay website for a list of current B2Bpay Bonus Billers. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected]. Businesses must ensure the ABN registered with Qantas Business Rewards is saved in the B2Bpay customer profile or entered online when paying in order to earn Qantas Points. Qantas Points earned using B2Bpay will be automatically credited to your linked Qantas Business Rewards account within 90 days of your eligible spend as outlined in the B2Bpay Customer Terms and Conditions. B2Bpay Billers will earn 1 Qantas Point for every $20 of customer payments made by customers using VISA or Mastercard via the Public WebPay payment portal supplied by B2Bpay (an ‘eligible payment’) and featured on the Biller’s invoice or statement template. Excludes failed or refunded payments and may not be available to businesses on enterprise or special pricing plans. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected] 

^ Qantas Points quoted are accurate as at 1 August 2017 but may vary at the time of booking. Classic Flight Rewards are available on Qantas, Jetstar and partner airlines. Classic Flight Reward seats are subject to capacity controls, availability is limited and some flights may not have any Classic Flight Rewards available. Taxes, fees and carrier charges are payable by an Accepted Payment Card in addition to the points required on Classic Flight Rewards. These are quoted at the time of booking and are subject to change. See Classic Flight Rewards for more details. 

^^ Source: B2Bpay and Deloitte estimates. Bank issued points earned by using your credit card are estimated to be 1 Qantas Point or alternative credit card reward point per dollar spent; Qantas Points earned from the ‘1 Qantas Point per $100 spent’ and the ‘B2Bpay Bonus Billers’ offers are estimated to be a combined 1.2 points per dollar (which for example, can be achieved when $240,000 p/y spend is transacted 29% through 1 point per $1.50 bonus billers, 30% through 2 point per $1.50 bonus billers, 30% through 3 points per $1.50 bonus billers and 11% through non-bonus billers); interest saved is based on a market rate overdraft facility or average return; excluding flight taxes, fees and carrier charges.