1. Set up a business bank account


If you operate as a sole trader you don’t legally have to have a separate bank account for your business – you can use your personal account. However, to easily track your business income and expenses, consider opening a separate business account.

If your business operates as a partnership, company or trust then you must have a separate business bank account for tax purposes.

2. Set up a bookkeeping system


There are many manual and electronic bookkeeping products that could suit your business. If you’ve employed a financial professional, have a chat to them about the products that will best work with their systems.

3. Prepare a budget


Preparing a budget outlining your forecast income and expenses helps you manage your cash flow when starting and running your business.

4. Payment types and invoicing templates


You'll need to decide on your payment terms and payment types your customers can use. You may also need to set up an invoicing template and receipts to give your customers when selling goods and services.

It’s important to provide a correct invoice for your goods and services. Make sure to include a clear due date and follow up on payments that fall behind. If your business provides subscriptions or memberships, consider setting up an automatic payment system or direct debit. This will save you the hassle of chasing payments.

5. Manage your cash flow


Keep track of the money that’s coming in and going out of your business. An easy way to do this is to use a cash flow statement. A cash flow statement allows you to track your income and plan your expenses. This lets you plan ahead and feel comfortable in the knowledge that you’ll have the money to pay your bills.