Talking Cents

Small business accountants from Melbourne provide advice on cash flow

Cash is commonly misunderstood as profits and profits does not equal cash reserves in bank.

A profitable business might not have cash flow due to poor management of systems and controls in place. Therefore, it makes cash flow one of the most unpredictable elements for a new startup business.

As no historical data is available to refer, you may not have any idea when extra cash reserves are expected in a downturn or when high and low seasonal periods will occur. As a result, having a budget, projected profits and cash flow forecasts are useful planning tools to measure actual performance by allowing proper management for the timing of cash in and out flows.

As small business accountants based in Melbourne, we are able to manage cash needs and optimal level of stock by evaluating sales, seasonal trends, cash flow as well as stock turnover that can likely free up working capital and reinforce cash position.

We're passionate about small businesses in Sydney and Melbourne and provide accounting service packages that will help you better manage your business books. With over 50 years of experience working with different clients from a variety of industries, we have satisfied their needs and believe we can satisfy yours as well.