Cash flow is Confidence in any business, but it is easy for businesses to get into financial trouble when they don’t have a clear understanding of their cash flow. With the economy being what it is these days, many small business owners neglect this crucial aspect and end up closing down before within the first 2 years.! Let me ask you: do YOU monitor your company’s daily or weekly revenues?
Understanding your cash flow is the biggest measure of business success. It can also be one of the most daunting tasks for small businesses when they are unfamiliar with what drives it and how to monitor it effectively.
Does the following statements sound familiar to you?
- We are worried about cash flow.
- There’s been a slowdown in receivables.
- We have ballooning debtors and some major contractors are now really slow to pay.
Cash flow monitoring can be challenging for businesses, particularly when they lack relevant, up to date information. Only 65% of SMEs are producing accurate, timely internal business reports. If not done well, the consequences can be dire. The top nominated cause of financial failure for businesses is ‘Inadequate cash flow or high cash use’ (44%).
For some SME’s outsourcing collections allows them to remain focussed on their business, so if you are a small SME why not consider outsourcing this function? Yes there is a cost, but the results will be beneficial.
The outsourced agency soley concentrate on contacting your suppliers and have follow-up procedures in place. The end result is more cash being introduced into your business often faster than you would have achieved as it is typically not your core skill, in fact many business owners phone their debtors when they experience cash flow shortages.
Additionally, do not forget, the cost of outsourcing offsets the cost of having that function performed internally within your business, providing you with additional savings and more cash flow.
Cash flow monitoring and planning is best practice in any business and critical to survival and growth, BUT, you will never be able to manage your cash flow successfully if you don’t know what it is. That’s where Cash Flow Management Coaching comes in! Insight CA can help give the confidence and skills necessary for understanding how this works, its importance on your business success as well as put together an actionable plan that will make sure every penny counts.
Inadequate cash flow is a symptom of management problems in a business, NOT the cause but together we can fix the underlying issues.
Are you worried about your cash flow?
Cashflow is a symptom of management problems in a business, NOT the cause but together we can fix the underlying issues. Don’t let cash flow be the reason your business fails. The sooner we complete a Cashflow Forecast for you, the sooner we can work together to agree on strategies for improvement and build you a better business. Also, If you need an accountant in Auckland – feel free to reach out. Book a free, no-obligation call below.
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If you’re looking for a way to be more confident in your cash flow, then I recommend reading this article.
Are you struggling to make your business work?
Insight CA Limited is a team of experienced Auckland-based chartered accountants and business advisors who can help. We’ll give you the power to see what’s really happening in your business, so you can take control and start making progress. Click here to learn more about how we can help you achieve your goals.
