Can I use grants for marketing and expansion?
Depending on the grant’s terms, you may be able to use the funds for marketing campaigns, hiring staff, or expanding into new markets. Always read the grant guidelines to ensure appropriate use of funds.
How can government funding impact my RTO’s profitability?
Government funding can significantly impact profitability by subsidising course costs and enabling you to offer competitive pricing. However, it’s crucial to maintain compliance to continue receiving such funding.
What financial metrics should I monitor?
Key financial metrics include revenue growth rate, profit margins, operating expenses, and student acquisition costs. Regularly monitoring these can provide a snapshot of your RTO’s financial health.
How can I manage cash flow effectively?
Effective cash flow management involves timely invoicing, prudent expense tracking, and maintaining a cash reserve for emergencies. Financial software can assist in automating these processes.
Are there tax benefits for RTOs?
Yes, RTOs may be eligible for various tax benefits, including R&D tax incentives, education rebates, and asset write-offs. Consult a tax advisor familiar with the VET sector for tailored advice.
