Cash flow tricks you should be practising

Cash flow tricks you should be practising


The ability to manage cash flow is a critical tool for business owners.

Incorporate the following cash flow tricks to keep the money coming in and the business running smoothly.

Make payment easy
One of the easiest ways to make sure cash flow keeps going is to make it easy to pay you. When a business or customer attempts to pay you, the process should be straightforward and easy. If it isn’t, people you do business with will remember it as a nuisance and are more inclined to put it off. If you need certain paperwork filled out to be paid, make sure it is all legible, in order and given ahead of time.

Forecasting and predicting
There are always unforeseen challenges or changes in the marketplace. While you won’t always be able to predict or forecast these, you can gain a better grasp on industry trends and patterns. As a business owner, you really ought to have knowledge of the marketplace beyond just what your company is doing. If you don’t know where to start or you are not confident doing so, speak to someone who knows the industry. Make the most of the resources at your disposal.

Generate new business
The business is going well; you’re meeting your targets, the money is coming in, and you’re happy. This is not a time to relax. It is a time to be seeking out and generating more business. The regular business you conduct weekly or monthly or annually may not be there next time round. Keep expanding and preparing your business to cater for growth. This will help prevent you from chasing your tail when times are tough.

Resilience
There are a lot of unpredictables in business; there are risks you can prepare for but handling them should they arise can be difficult. While you can hope to never face substantial hardship, a smart business owner can be seen through his actions when there is hardship. The ability to think quickly, efficiently and to manage adversity in a manner that is not only going to solve the issue but in a way that will strengthen the business is a powerful tool.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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