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The 5 main causes of cash flow problems, by small business accountants in Sydney

If you’re a new business or thinking about starting ones, it is important to know that your Cash Flow should be strong for you to succeed. Our small business accountants in Sydney will explain to you the 5 main causes of cash flow problems.

The 5 main causes that business accountants want you to avoid are:

1. A decline in your sales or a declining gross profit margin – these usually occur when there is an economic struggle, more competition and a pressure on sales to make money
2. Your business is unprofitable – to simply put this, your business is spending more money than it is making
3. Your business does not get paid in time – this means that your business does not get paid in time and could possibly take up to 90 days for you receive any money. This in turn results in a negative cash flow business model
4. Your business is in excessive debt or there is too much capital expenditure, this is when you’ll need to outsource a professional business accountant in Sydney to manage your accounts
5. Poor stock and debtor management – not being able to monitor your stock properly or collect money that is owed to you by customers can become a real problem that will affect your business

If your business is starting to struggle with cash flow remember to contact one of our small business accountants in Sydney.

 
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