Cash Flow Training

It is vital for every business to track performance over time, to monitor and address cash flow issues before it’s too late. Tracking accurately reveals how you are performing against your plan and allows you to revisit your budget with a clear path to improve your cash flow.

Tracking your performance can help you:

• Operate profitably and continue to generate a positive cash flow.

• Make changes to improve cash flow in a timely manner.

• Make informed decisions.

• Gather and analyse comprehensive information to prepare reports.

Accurate record keeping can help you:

•Identify issues early.

• Measure how well your business is performing so you can make informed business decisions.

• Keep track of your cash flow by monitoring the money that comes in and the money you pay out.

• Reduce the risk of employee theft.

• Claim as many allowable deductions as possible.

• Show your financial position to banks and other lenders, or prospective buyers of your business.

• Make best use of time with your advisor for business and financial planning rather than sifting through papers.

There are many operating costs when managing your business. Some are more obvious, such as phone bills, rent, or equipment. However, there are a number of less obvious costs, including licences you may need to operate your business, superannuation for you or your employees, and your business activity statements.

Knowing and planning for all of your regular financial commitments avoids unnecessary cash flow stress and can help you:

• Prepare for large payments.

• Know how much to put aside to meet your commitments when they arrive.

• Look at negotiating where certain payments fall within the year.

• Be in control of your financial commitments, without any surprises.

• Feel prepared for the unexpected.

• Understand the financial ramifications of the decisions you make within your business.