Control Your Cash Flow
One of the most common frustrations business owners have is control of their cash flow.
We often hear comments like: “I wish my bank account looked like my profit and loss – where did it all go? It's not as if we live lavishly, we don't go on overseas holidays or dine out every night!”
Commonly, the answer lies in the sales and payments cycle.
The longer it takes to send out and collect an invoice the quicker the bank balance wears down as your suppliers are paid before you are paid.
Preparing a “Where Got – Where Gone” statement is a great method of finding out where the money went over the past year. But just imagine if you were able to see your cash flow for the next three, six or twelve months. Just imagine if you were able to go on a holiday for three, four or six weeks without the worry of not knowing if there is enough money in the bank to pay the bills.
This is able to be achieved with the preparation of a budget and cash flow projection.
A review of past performance helps to explain the behaviour of the cash flow of the business. By having these reports prepared you will gain confidence in the future of your business. You'll be ready for the inevitable risks/threats and more importantly, the opportunities that lay ahead.
This is the first step of every business person's evolution from a technician to an entrepreneur. If you want to take control of your business cash flow we'd be pleased to assist.Find out More! Send us an Email!