Are you keeping a close eye on your business' cash flow?
When you're in the early stages of running a business, it's difficult to bring in enough revenue to break even consistently. You always have to worry about where your next sale will come from, and sometimes you'll have doubts about earning enough money to survive from month to month.
Without having real cash on hand, how are you supposed to invest in the future of your business?
Unfortunately, having your revenues outpace your expenses on paper is only half the battle. The other half is actually collecting the cash you're owed. After all, without having real cash on hand, how are you supposed to invest in the future of your business?
Planning out your cash flow is an essential part of management. Are you on top of it?
Monitoring the funds that trickle in
It's impossible to pursue your goals for business development unless you have clear knowledge of how much cash you have. According to Business Queensland, it's crucial for growing businesses to prepare not only budgets, but also cash flow statements, which describe in detail what funds are coming in, from where and when.
This can be tricky because different revenue streams tend to come in via different timeframes. Your schedule for collecting payments on sales might be entirely distinct from your collection of interest from savings accounts, for example. The challenge is to have detailed knowledge of every single source of income.
Keeping your cash flow focus over time
Everyone is aware of the importance of cash flow to some extent, but few understand just how crucial it is to check up on it regularly. Entrepreneur Magazine advised that if you aren't looking into your cash flow details all the time, you might overlook key information.
"Every month isn't enough," small business owner Derek Flanzraich told the publication. "Nearly every week, I'm checking both my personal and business finances."
This might sound like a logistically taxing assignment. If you feel this way, it might be wise to find chartered accountants who can help you stay on top of your financial obligations.
Getting help from the accounting pros
If you decide that cash flow is one of the tougher aspects of running your organisation, then asking for help is probably a good idea. At Wilson Porter, we have a staff of capable business development consultants with a solid understanding of budgeting and cash flow issues.
That's just one of the numerous business solutions we have to offer. Our experts can also help with annual financial reporting, business restructuring or any other challenges you're up against. Just give us a call if you'd like to learn more.