CASHFLOW MANAGEMENT ESSENTIALS (2021)
- May 25, 2021
- Posted by: Tony Dimitriadis
- Category: Uncategorized
Cashflow is the lifeblood of your business.
Most business owners focus on profit rather than cash and this is where cashflow problems begin.
Cashflow is simply money coming IN versus money going OUT.
The 3 biggest killers to cashflow are:
- Slow paying customers
- The ATO
- Over-committing expenditure
(Click the link below to watch this short informative video)
It is possible to be making a profit but still experiencing cashflow problems.
A simple example is that you could be generating sales from the work you’re doing, however, you may not be getting paid for it.
You must focus on the strategies that increase your cashflow.
Simply making more money will not solve your cashflow problems, if cashflow management is the problem to begin with.
You need to have the right strategies in place to manage your cashflow to ensure you have enough money to operate your business on a day-to-day basis.
It’s time to get control of your money; do not let it control you.
You must know where, when, how and why your money is coming IN and going OUT.
You do this by creating a cash flow forecast.
You need to know what your sales and expenses are likely to be, but also the timing – which is critical.
If you don’t know what your cash needs are then how can you possibly manage them?
Your forecasting will depend on both historical and future factors.
The more you consider, the better the forecast will be.
Once you have prepared your forecast, the next step is even more important. That is, to analyse what the cash flow forecast is actually telling you.
It will show you the areas that require your attention and action.
Be proactive and manage your cash flow – every day.
The bottom line? Building a strong financial strategy will help your business get to where it needs to be.
Are you in need of sound business advice and support to help grow your business? Contact us for a free 30 min strategy consultation. Let us review your business requirements to help you grow your business and achieve your business goals – big and small.
Tony Dimitriadis B.Bus CPA Director
Our renowned coaching programs will allow you to:
- Work fewer hours — and make more money
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- Manage your time so you’ll get more done in less time
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- Automate your business, so you can leave for days, weeks, or even months at a time