Allocations Automated - The Future Is Here

What is Automated Allocations?

Before we jump into the nitty-gritty, let's get a clear understanding of what automated allocations entail. Allocations refer to the distribution of funds to different accounts based on predetermined percentages. In simple terms, let's say you want to be prepared for tax time, so every time you earn income, you set aside 15% of your income in a tax account. Now, imagine if this process could be streamlined and automated – that's where Thriday steps in.

Automated allocations with Thriday mean that a percentage of your income is automatically distributed to specific bank accounts without you lifting a finger. It's like having a personal financial assistant working around the clock to ensure your money is allocated where it needs to be. It's like budgeting without the headaches.

How Do Allocations Work?

The concept of allocations isn't new, but the way Thriday handles it is a game-changer. Traditional approaches involve the back-breaking work of setting up multiple accounts (yawn!) and manually calculating and transferring money around, but Thriday automates the entire process for you. It's great for any business, but especially if you are a Profit First aficionado. Here's a simple breakdown of how it works:

1. Create up to 10 business accounts in seconds

Thriday makes account creation a breeze. You can create up to 10 accounts under your business profile in seconds or use the Profit First quick account set-up, and Thriday will do it for you. You can even name your accounts and give them different colours for easy recall.

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2. Set allocation percentages

Determine the percentage of your income that you want to allocate to different accounts. This could include your revenue account, tax account, operational expenses (Opex) account, and even your own salary or owner's pay account.

Thriday allows you to customise these target allocation percentages based on your financial goals.

3. Thriday does the rest

Once you've set your target allocation percentages and selected your accounts, Thriday takes over. The system automatically calculates and executes the payments every time income is recorded according to your predetermined percentages.

4. Stay in control

Thriday keeps you in the loop with real-time updates via your inbox so you know when allocations have been processed. You can easily track, pause and edit allocations via your dashboard, ensuring transparency and control over your finances.

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How to Set Up Automated Allocations?

Now that you understand the basics, let's walk through the steps to set up automated allocations with Thriday. It's a straightforward process designed to save you time and make financial management a breeze:

1. Log in to your Thriday account: If you don't have an account, you can join for free on the Thriday platform. Existing users can log in to their accounts.
2. Create accounts: Go to Settings and then Accounts; from there, you can add accounts manually or use the Profit First quick account set-up.
3. Navigate to allocations: Find the allocations tab on the Accounts screen. You can add any allocations you want and use up to 100% of the income you receive to distribute.
4. Define your allocation percentages: Set the percentages you wish to – revenue, tax, opex, owner's pay, and other relevant accounts. Thriday allows you to tailor these percentages based on your unique business needs.
5. Activate automated allocations: Once your percentages are set, and the destination account is confirmed, activate the automated allocations feature. Thriday will now take care of the rest.
6. Monitor and Adjust as Needed: Regularly review your allocations and adjust if your financial goals or circumstances change. Thriday allows you to maintain control and adapt to your evolving business needs.

What Can You Use Allocations For?

Now that you have the automation in place, you might wonder about the practical applications of automated allocations. Here are some key areas where this feature can make a significant impact on your small business:

1. Profit generation: Rather than being a lucrative goal that is never achieved, setting aside a set-aside percentage as Profit, means you make a profit every time you earn income.
2. Tax planning: Allocate a portion of your income directly to your tax account. This ensures that you have the funds ready and waiting when tax season arrives, eliminating any last-minute scrambling.
3. Operational expenses: Designate a portion of your income to cover operating costs. Whether it's rent, utilities, or supplies, automated allocations ensure that your business's day-to-day needs are met without stress. Setting money aside this way forces you to spend what you have, not in excess.
4. Owner's pay: Set a consistent percentage for your owner's pay. This guarantees you a regular income from your business, providing stability and peace of mind.
5. Profit First methodology: If you're a fan of the Profit First methodology, automated allocations align perfectly with its principles. Thriday empowers you to implement Profit First seamlessly, prioritising profitability from the start.
6. Super contributions: Many business owners need to set aside a portion of their earnings for super, leading to huge challenges later during retirement. Don't be tempted, and set up an allocation to automatically move money to your super fund every time you earn cash.

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The Benefits of Automated Allocations

Now that you know how to set up automated allocations and where to apply them, let's explore the multitude of benefits this feature brings to the table:

1. Time savings: Say goodbye to manual transfers and calculations. With Thriday's automated allocations, you reclaim valuable time that can be better spent growing your business.
2. Reduced financial stress: By automating the distribution of funds, you eliminate the stress of managing multiple accounts manually. Thriday takes care of the details, leaving you with peace of mind.
3. Improved financial discipline: Stick to your financial plan effortlessly. Automated allocations instil financial discipline by ensuring that your money goes where it's supposed to go consistently, and you can't be tempted to use it elsewhere.
4. Real-time visibility: Thriday provides real-time updates on your allocations. This transparency allows you to stay informed about your financial health.
5. Adaptability: Business conditions change, and Thriday understands that. The platform will enable you to adjust your allocation percentages easily, ensuring your financial strategy remains in sync with your evolving goals.

Allocations FAQs

As we wrap up, let's address some frequently asked questions about automated allocations with Thriday:

Q: Is Thriday's automated allocation feature suitable for all types of businesses?

Yes, Thriday's automated allocations can be tailored to suit the needs of various businesses, from startups to established enterprises. You can set up as many as you want, as frequently as you wish. It's your choice.

Q: Can I change my allocation percentages after setting them up?

Absolutely. Thriday understands that business priorities can shift. You can adjust your allocation percentages anytime to align with your changing goals. You can even pause them and start them again.

Q: How secure is Thriday when it comes to making payments?

Thriday prioritises the security of your financial data. The platform uses advanced encryption and secure connections to ensure the safety of your information.

Q: Can I allocate funds to accounts beyond the standard revenue, tax, opex, and owner's pay?

Yes, Thriday allows you to customise your allocations based on your unique business structure and financial priorities. You can send money to any account or recipient you have in mind.

Final Thoughts

Thriday's automated allocations feature marks a significant leap forward in financial management for Aussie small business owners. By automating the distribution of funds, you gain time, reduce stress, and enhance financial discipline. Whether you're a fan of the Profit First methodology or simply looking for a more efficient way to manage your finances, Thriday's automated allocations have you covered.

Make the smart move towards financial efficiency – explore Thriday's automated allocations today and take control of your small business finances like never before. Your business deserves the best, and with Thriday, you're on the path to financial success.