Plan your business finances

Setting up and managing finances is essential to the success of your small business. You can learn about basic financial processes, planning for good financial management and discover what financial policies you need to be aware of.

On this page

    Basic financial requirements

    Start-up costs

    Pricing for products and services

    Income and profit

    Seek professional advice

    Work with your accountant or financial adviser for tailored recommendations and advice on how to set up finances for your business type or industry.

    Managing your own finances

    You can learn basic skills as a small business owner to give you confidence to manage your own finances. These skills will help you:

    • understand accounting basics
    • be confident in financial terms
    • interpret financial statements
    • identify how cash flows through a business
    • understand cost of goods sold
    • use financial information to make business decisions.

    Skills such as budgeting, calculating taxes, setting price points and setting revenue and success rates will give you control over your own financial decisions.


    Remember to clearly separate your business finances from your personal finances and accounts.

    Putting together a budget can be as simple as creating a spreadsheet. At the end of every month, compare your actual spending to your budget. If it doesn't match, review where your money was spent and make adjustments for next month.

    Learn more about budgeting.

    Expenses are things you have to pay for to run your business, such as overheads (e.g. rent, electricity) and employee salaries.

    Understanding your expenses can save you money when applying for a loan or negotiating deals with suppliers.

    Learn about the costs to start and run your business.

    Cash flow is how money moves in and out of your business. You can track your cash flow on a simple spreadsheet or in your accounting software. Small businesses starting out may have dramatic changes in income and expenses each month.

    Record every purchase, withdrawal, cost and sale in your spreadsheet or accounting software. This will help you understand:

    • where your money is going
    • your highest expenses
    • your most profitable products
    • high revenue months or periods
    • what an average month looks like.

    Learn more about managing your cash flow.

    Before borrowing money, compare terms, interest and fees from multiple lenders using an online comparison service or a broker. Read the fine print and understand the loan's limitations and requirements.

    Find options for funding your business.

    Your personal credit rating can affect your ability to apply for business loans and credit.

    Speak to your accountant or financial adviser for more information on managing your credit rating.

    Improve your financial knowledge

    Grow your financial knowledge to help you better understand how to run your business. You could:

    Further training

    Use the Queensland Skills Gateway to find available training courses in Queensland.

    Financial policies and procedures

    Financial policies set out the 'rules' for how you will manage your business's finances. They should reflect the core values and culture of your business.

    Clear financial policies and procedures will ensure:

    • staff are aware of their obligations
    • financial decisions are consistent and reliable
    • client or employee disputes are less likely
    • professional operating standards are in place.

    Types of financial policies and procedures

    Your policies and procedures will depend on the nature of your business. Think about your preferences for:

    • who you will authorise to complete specific tasks
    • cash handling and managing your business's day-to-day finances, such as petty cash and invoicing
    • how you will choose and work with new suppliers
    • buying and purchasing processes such as stocktake and purchase orders
    • overdue invoices or accounts payable (creditors)
    • sales and accounts receivable (debtors)
    • engaging and managing customers or clients
    • processing wages, sick leave and overtime
    • business insurance and risk management.

    Creating financial policies

    Financial policies should:

    • align with your business plan and goals
    • reflect the values and the culture of your business
    • explain why policies have been put in place
    • be easily understood by everyone in your business.

    Creating financial procedures

    Financial procedures set out clear instructions under a policy and should:

    • be factual, informative and detailed
    • be presented simply using clear instructions and visual supports such as flow charts, images and checklists
    • include references and links to forms.

    When writing your financial policies and procedures:

    • highlight your objectives
    • involve your employees in the decisions
    • write and review each day, or as you complete tasks, to keep manageable.

    Also consider...