This is Lisa ...
She works for Complete Fitness in their finance department. Her responsibilities including managing cash flow, producing financial reports, payroll, ensuring correct taxes and insurance premiums are paid, processing accounts receivable and payable, and debt collection.
Are there many legal obligations in regards to small business finance?
Well, tax is definitely a big one. We have to pay goods and services tax (GST), payroll tax, and withhold income tax for our employees. The other main legal requirement is in relation to client fees and refunds. I work closely with our legal team to ensure our contracts are correct and that everyone is aware of our obligations in regards to consumer protection.
Do you have problems with people not paying their fees?
Sometimes, but it's not too bad. We usually set-up direct debit payment plans so that people can budget their membership fees. Occasionally someone's bank account may not have enough funds for a particular month's payment which causes a default. We have processes in place to notify the client and attempt the direct debit a few days later. It's very rare that we have to take further action, and if we do we just suspend their membership until they are able to pay.
How do you manage cash-flow so that all expenses can be paid each month or quarter?
We have a budget and know how many clients we need in order to make ends meet and all additional clients represent profit or money that can be reinvested into the business. This gym is quite successful now so we are regularly in the black so to speak, but it wasn't always that way. When the owners first started 20 years ago they operated at a loss for the first 18 months whilst they established a solid client base.
Do you consult with any specialists or agencies in regards to financial matters?
Not really. Before I started working here they used the services of an accounting firm, but they decided to bring that duty in-house hence my hiring. Sometimes I will consult with the Australian Taxation Office (ATO) or our insurance company in regards to tax or insurance premiums but largely I am qualified and experienced to handle most tasks and problems.
What sort of digital technology or software do you use?
Just a simple accounting software, it's an off-the-shelf commercial product that a lot of similar-sized companies use. It works fine and is capable of managing all our budgets, invoicing, receipting, payroll and tax records. I also use a few apps to access internet banking and the ATO site when I'm working remotely.