Since launching RBK Advisory in 2016, Jason Robinson has had a heady ride. Recently announced as Xero Accounting Partner of the Year, the firm has also been named by Hubdoc as one of the Top 50 Cloud Accountants and he’s earned himself the accolade of Young Finance Leader Accountant of the Year.
He expanded the Melbourne-based business to Perth in 2018 and now has his sights set on Sydney. The accounting hotshot says RBK’s mission is to inspire business owners, improve their financial positions, and improve their lifestyles.
This week he dropped in on our Bricks & Clicks retailers to share some advice.
“A big thing I’m passionate about is educating small business owners to make sure that they’re making the right decisions in their business,” Robinson tells Kochie’s Business Builders.
“Having a sound financial plan from day one is absolutely paramount,” Robinson says.
“I think making sure that your budgets and forecast actually worked out before you go into business is a great idea. If you’re already in business and don’t have a forecast or a budget, it’s something I’d recommend sitting down with your advisor or your accountant and actually putting a plan in place, and then actually working towards that on an actual budget report so you can see how you’re tracking towards your financial goals.”
With cash flow being one of the number one issues that lead to small business failure, Robinson suggests forecasting your cash flow is a vital element in any business plan.
“Cash flow forecasting’s really important for planning for those future decisions you need to make in your business. It can be something as simple as hiring an employee and forecasting to make sure you can afford to pay them, buying that next round of stock to make sure you can fill your store, or even planning ahead for your tax, BAS and GST and superannuation obligations.
“There’s so many things that the business owner needs to be aware of. Actually having that cash flow forecast gets it out of your head and actually gives you a bit of sound financial clarity as to what your business is doing and what you’re working towards.”
Robinson acknowledges small business owners are notoriously time poor, so chasing invoices can be a hassle. He suggests implementing online payments and ensuring you clearly state your payment terms will go a long way towards smoothing out those cash flow bumps.
“Make sure that you have your terms and conditions set out before you start engaging with your customers. If you’ve got seven-day terms, 14, 30, or upfront, make sure that that’s set in a contract with your client. Having an online payment gateway, so that when you send out your invoice to your client, it makes it so easy for them to click ‘Pay Now’.
“We know through Xero’s research on their database of clients, that people who have their online payment gateways on their invoices, actually get paid twice as fast. Now tell me you don’t want your money twice as fast!”
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