7 Smart Money Habits from Successful Businesses You Can Adopt
Written by Sonia Gibson
One of the most valuable aspects of being an entrepreneur is the ability to learn from those who’ve walked the path before you. It’s like a shortcut to success - avoiding their mistakes while benefiting from their wisdom.
When it comes to your business finances, this couldn’t be more true. After a few years that have thrown all sorts of challenges our way, now is the perfect time to embrace the lessons that the most financially savvy businesses have mastered.
Here are seven essential money habits that will help your business thrive - no matter what challenges lie ahead.
1. Pay Yourself First – Prioritise Profit
It’s tempting to pay your expenses first and save whatever’s left as profit. But this approach can leave you stuck in a stagnation cycle, never quite able to increase your profits.
By paying yourself first, you’re actively prioritising your business’s growth. You’ll have a clearer understanding of which expenses are essential and which ones can be trimmed. This shift in thinking encourages better financial discipline and ensures that you’re building wealth from the start. And if you're unsure how to make this work, a trusted accountant can guide you through it with ease.
2. Taxes Are Non-Negotiable - Set Them Aside
Let’s face it: taxes aren’t fun. But they’re a reality every business owner faces. The key to avoiding the panic of last-minute payments is simple: set aside your tax money as soon as you receive any funds.
Whether you stash it in a separate account or keep a dedicated tax fund, this habit will make tax season a lot less stressful. You’ll always be prepared, and you won’t have to worry about “finding” the money when it’s time to pay.
3. Keep Your Business and Personal Finances Separate
We all know how easy it is to let the lines blur between business and personal, however, mixing personal and business funds is a recipe for financial chaos. Not only does it complicate your bookkeeping, but it also increases the risk of missing out on tax deductions, misclassifying expenses and creating potential issues with the ATO. By maintaining distinct accounts for personal and business use, you’ll simplify your financial life and keep things clear.
4. Don’t Rely on "Build It and They Will Come"
Gone are the days when a great idea alone could drive business success. Today’s marketplace is competitive, and smart companies know that growth doesn’t happen by chance. A thoughtful marketing strategy, combined with a solid financial plan to manage incoming revenue, is key to staying ahead. By actively nurturing relationships and maintaining a steady flow of leads, you’ll keep your income flowing and your business growing.
5. Your Accountant Is Your Financial Lifeline
No business owner can be an expert in every area, and that’s where your accountant comes in. Whether you're facing a cash flow issue, need help deciphering financial discrepancies, or simply want advice on navigating economic shifts and creating projections, your accountant is your right-hand resource. Lean on their expertise - they’re the unsung heroes behind every successful business.
6. Financial Transparency Is Crucial for Growth
It’s easy to ignore uncomfortable truths when it comes to your numbers, but honesty is the key to real growth. Understanding your numbers, including revenue streams, costs, and projections, helps you make informed decisions. Every business has areas where they struggle - whether it’s in lead generation, closing sales, or managing clients. Recognising your weak spots is the first step in strengthening your business and achieving financial success.
7. Adaptability Is the Secret to Long-Term Success
Business success isn’t about getting everything right the first time - it’s about your ability to adapt, learn, and evolve. The best business owners aren’t just accountable for their decisions; they also embrace change, seek out new opportunities, and adjust their strategies when needed. Whether it’s refining your business model, responding to market shifts, or learning from financial missteps, staying flexible and open to growth is what sets thriving businesses apart. Surround yourself with the right advisors, keep an eye on emerging trends, and never stop learning - because adaptability is the key to staying ahead.
Ready to Take Control of Your Business Finances?
Building a successful business is about more than just a great idea - it’s about mastering the financial habits that keep your company thriving, even through uncertain times. By adopting these seven smart money habits, you’ll be well on your way to creating a solid financial foundation that supports long-term growth and success.
Remember, it’s not about perfection - it’s about progress. So take a moment to reflect on your current financial habits, and start making small, impactful changes today. With the right mindset and the support of trusted advisors, your business can reach new heights of financial freedom and stability.
If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with our team one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and/or other advice as may be appropriate having regard to their particular circumstances.