Do you have a good handle on your company’s cash flow?
Cash flow may not be a flashy or glamorous issue, but it's one that rears its ugly head in the business landscape in Australia all the time. When small businesses fail in Australia, it's often because they don't have a steady stream of revenue trickling in to keep them in business.
Do you have a good handle on your company's finances – not just how much money you have, but also how and when it's coming in?
This raises a key question: Do you have a good handle on your company's finances – not just how much money you have, but also the specifics of how and when it's coming in? Figuring all of this out can be a big step toward stabilising your business. If there are any roadblocks in your way, such as interruptions in selling activity or other larger financial problems, you'll need to address them.
Cash flow can be make-or-break
The first step toward finding stability in business development is understanding the seriousness of the problem. Cash flow can be a make or break issue, and if you don't take it seriously, it's trouble. According to Smart Company, many business owners have a habit of focusing solely on profitability and not thinking enough about when they can actually collect cash.
The timing is everything, though. Imagine being unable to pay your employees – not because your sales are struggling, but simply because you don't yet have the money they're owed. Your staff won't settle for a promise to be paid later – they want their paychecks, or they're going to walk. An issue like this can be your downfall if it's not resolved quickly.
Identifying root causes of financial trouble
If you're beginning to sense issues with your company's cash flow, the best way to deal with them is to find out the root causes and address them right away.
For example, if you have customers that are paying you late on a regular basis, that's an issue you need to deal with ASAP. Likewise, if you've got a bigger financial issue like a pending lawsuit, you'll need to survive the ordeal with your cash flow intact – which may be a problem that demands the help of chartered accountants.
Resolve your money problems and move forward
Fortunately, at Wilson Porter, we're willing to help you with whatever cash flow issues you're facing. By putting together a comprehensive cash flow statement, you can get to the bottom of your money problems, and we have the expertise in house to assist you with that.
Once you have a business development consultant to pitch in with forecasting your company's cash flow, you'll be in much better shape. This is just one of the many business solutions we have to offer; contact us if you'd like to learn more.