Articles Blog
Cash Flow tip – 5 ways to improve Cash Flow for Successful Business
- Details
-
Published on Thursday, 24 February 2022 09:37
We list 5 ways to help improve cash flow for business success and get it under control - remember it is only by on-going monitoring that we can keep on top – measure and tweak, measure and tweak…!
One of the things many businesses find a burden is that cash flow can easily get out of hand and several studies suggest that financial miss-management is one major contributor to business failure.
Take action on these -
- Look at who owes you – WEEKLY.
Check your debtors/accounts receivable report every week – contact those tardy payers – send Statements a minimum every Fortnight! A month is too big a gap and easy to slip the mind…
- Plan for highs and lows.
Be aware of possible lean cash flow patches coming up and plan for them! Avoid major purchases from your business’ working capital unless you are sure you have cash to cover it. A cash flow budget will help you see this – eg. when revenue is down on forecast you expected (eg. the average monthly required, or based on same time last year, or a certain % growth if that is the current trend).
- Have finance products working to your benefit.
Overdrafts, premium funding, lease facilities and cashflow funding products can all be excellent tools to help boost a business’ cash. Even the business credit card can be a good way to ease the squeeze as long as you are sure the debt can be paid before interest kicks in, which is the best way to handle credit cards!
- Avoid penalties.
Keep on top of credit cards, taxes and compliance to save the cost of fines… and the stress!
- Keep your hands out of the till.
Make cash drawings for personal purposes as minimal and follow conservative cashflow forecasts. Take a weekly wage for yourself so it’s easier for the bookkeeper/accountant and gives stability to regular expenses and drawings so you can PLAN better!
Need help? Not sure? Call for FREE 30min advice / strategy session today!
Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!
Email
This email address is being protected from spambots. You need JavaScript enabled to view it.
or call 0407 361 596 Australia
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
