Successfully managing your Cash flow

October 6, 2015

Cash Flow

Cash flow is extremely important for the viability of your business.  We are continually seeing issues with businesses being “strung out” by their major customers for payment which is creating a great deal of financial pressure on businesses.

Do you find your asking yourself?

•        Do I have enough cash to pay staff this payrun?
•        What if I can’t pay my BAS this month?
•        What if my major supplier puts me on stop credit because I can’t make payment?

A business can be profitable yet experience cash flow problems that drive it to insolvency issues. The key reason for this is that profit does not equal cash.

Like it or not, cash is effectively a way for business to keep score as it tracks the flow of available funds that come into your business and flow back out again. It is vital to your success as without the inflows of funds you will be unable to pay your suppliers, employees and financers. You may have sold loads of goods and have a fistful of invoices to show for it, but you can’t pay people with them – you need the cash.

Managing cash flow can be tricky but it will alert you to trouble before it occurs, so it is important to have an appropriate process in place to effectively manage this vital resource.

So how can Leenane Templeton help?

We have a number of service offerings that we offer:

These include:

•        Cash flow analysis and forecasting
•        Cash flow budgeting
•        Inventory Management
•        Refinancing options
•        Debt Consolidation
•        ATO payment arrangement services

90% of small business failures are caused by poor cash flow. Put simply, not enough cash coming in the door and too much going out. Getting paid on time and managing your outgoings is critical to business success.

If you have any current cash flow concerns, or would like further information, please do not hesitate to contact our offices on (02) 4926 2300.

By Joel Griffiths – Leenane Templeton



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