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How’s Your Cash Flow?

Friday, May 12, 2017

Cashflow

Cashflow - it’s a critical part of any business and cashflow issues are a leading cause of business failure. Too many small business owners put it into the too hard basket but ignoring it can bring your business to its knees.

Fortunately, there are ways to get your cashflow working for you.

According to the latest report less than 2% of Australian small business owners are satisfied with their cashflow and an overwhelming majority of small business owners say their 2016 revenues would have recorded an average of 18.7% increase if their cashflow had been better managed.

Sadly, only around 49% of small businesses are expecting an increase in revenues in the first six months of 2017, but is this pessimism warranted? And what can you do to turn your cashflow into a positive and stable support for your business?

Is your business a cash cow or simply dragging the chain?

There’s a tricky tightrope balancing act between the money going out to sustain your business and the money coming in from customers or clients.

For some businesses the delay between buying inventory, creating a product, packing and shipping it before then receiving funds from credit card or electronic banking transactions is enough to push the business to the brink. Businesses in the service industry have similar issues.

It’s a fine line between your business being a cash cow or a chain around your neck. The problems often begin when business owners are too time-poor or too laissez-faire to keep a check on their cashflow, or they simply can’t face the issues. It’s much easier to simply put your head in the sand and hope those problems will magically go away.

However, there are a number of ways to improve your cashflow management and you do need to take a serious look at how you manage your inventory, pricing structures and your debt repayments.

It sounds so simple doesn’t it?

But the complex interactions between these often conflicting demands for your cash can often seem like they’re just weighing you down. That’s when it really pays to get some trusty, dependable advice.

Why not give us a call today?