Effective cashflow management – a key to business success!
Is cashflow management causing you sleepless nights? Are you scared to pick up the phone or open the mail because you cannot pay your bills or meet the business commitments?
The key to any successful business, no matter how large or small, is cashflow management.
Every business owner needs to plan ahead to ensure they can pay bills as they fall due, make payments to suppliers or service loans.
Without the right systems and practices in place to management cashflow, a dream business can quickly become a nightmare!
Cashflow Management fundamentals for small business!
Key factors to assist with successful management of your cashflow:
- Break-even point – in simple terms this means that you know what sales the business is required to make to cover its expenses before a profit is made.
- Budgeting – predicting your sales and expenses, setting sales targets and then measuring your actual figures against budget
- Forecasting – adjusting your budget based on trends highlighted in the actuals so far in the year
- Managing debtors – Putting in place systems and policies to ensure you have sufficient cash to fund the needs of the business
- Managing creditors – ensuring you have enough cash to pay your creditors when due
At Financial Accounting Solutions we understand effective cashflow is the lifeline of small business.
When cashflow problems occur, it has “knock on” effects right across the business! The focus shifts from the customer (external) to internal – it drains energy, stifles innovation and creativity! Invariably, the overall performance of the business and its people begin to suffer!
Build Cashflow Management Processes that work
At Financial Accounting Solutions we work closely with our clients to build sound cashflow management systems and practices within their business.
Our is to aim to free up time and “headspace” so our clients can focus on what is important – growing their business and actually enjoy the benefits of their efforts!
In addition to putting the right systems and practices in place, we also meet with clients regularly to help them understand and improve their cashflow.
If you would like learn more about how we can help improve the cashflow management of your business, give the team at Financial Accounting Solutions a call today on 9885 7353.