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Small business accountant in Melbourne: ways to achieve a positive cashflow

A positive cashflow means ability to pay bills on time, which also implies that your business is able to meet liabilities in full and most importantly, on time. In order to achieve positive cash flow, businesses have to implement a few processes, read to find out more!

Are you conducting credit checks on your customers? Do credit checks on new customers so that you can better set their initial credit limits. Not only that, remember to conduct occasionally on existing customers’ financial status to anticipate any possible downturns. No financial status remains, things change. With credit limits, make sure you stick to it. Do not exceed the limit, if not, it defeats the purpose of having one.

Getting paid late? Continue chasing regularly! A proper payment system will remind you and your customers about late payments and help bring your cash flow under control. Some computerised systems are set up in a way which emails will be automatically generated to customers when payments are due.

Do not overstock as it uses working capital unnecessarily. What if you don’t sell fast enough?

Do not commit to a large order because it is big. Make sure you have enough finance and resources to cope, if not you are just putting yourself in a very difficult positing called “overtrading”.

Always predict and forecast your cash flow in order to grow sustainably and gives you a picture of the coming months.

For more useful tips and advice on how to grow your small business, contact us here at mas accountants, the original accountants for small business, servicing Sydney and Melbourne for over fifty years. 

 
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