Five Ways to Manage a Healthy Cash Flow
Five Ways to Manage a Healthy Cash Flow
We cannot stress enough the importance of properly managing your cash flow to ensure the smooth running of your business. This is especially the case following the events of 2020 – and leading up to Christmas! We have listed below five simple things you can do to better manage your cash flow:
1. Check your expenses
Now is the perfect time to review where your money is going and check which expenses can be minimised or eliminated completely. Re-evaluate your expenses and decide which ones are essential and should stay, and which ones can be trimmed down or cut altogether.
2. Negotiate your debt
Initiate a discussion with your lenders if interest only or deferred payments on outstanding debts is possible.
3. Reduce your rent
There are some government-backed rent assistance schemes which subsidise a portion of your rent and/or require landlords to waive part of it. Aside from this, you can further reduce your rent by checking if it makes business sense to move to a smaller space, close down other offices or stores that are not performing well, or move to a more affordable commercial space within your budget.
4. Request for more flexible payment options
It never hurts to ask, especially if you’ve been transacting with your vendors for a long time and you’ve established a certain level of mutual trust and confidence. You can request for more flexible payment options or longer payment terms.
5. Tap into available credit lines
Take advantage of available lines of credit and place the funds in interest-bearing accounts.
Assessing your cash flow is fundamental to gaining a better understanding of your business’ financial health. As cash flow experts, we can do your monthly, weekly, or even daily cash flow statements. This gives you visibility on where your cash comes in and goes out to, as well as allowing you to plan ahead.
Contact your local bookkeeper
The information your bookkeeper or accountant can provide can go a long way to helping you make smarter business decisions in the New Year!
Whether you’re just after some end of year financial advice, bookkeeping tips or assistance selecting an accounting package, we are more than happy to help.
See below for our bookkeeper locations.
Our Bookkeepers
Justine Day: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Gold Coast Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper