Connolly's Accounting Services | Why Worship Cashflow
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Why Worship Cashflow

Why Worship Cashflow

Its scary the amount of newly formed business or those established but struggling have no idea the amount of money they are making or that the business Cashflow is king. Monitoring Cashflow should be their number one priority and this not just involve looking at the bank statement, or the profit & loss made for the time period.

Common Cashflow problems consist of but not limited to are;

  • Difficulty to pay salaries, and employees super, at due dates
  • Trade Creditors in Arrears
  • Taxation Liability in Arrears
  • Just surviving day to day
  • Lack of funds for remedial action
  • Negative working capital

The main remedies to apply are;

  • Control debtors, and servilely limit the poor paying debtors a certain limit or not allow them any credit.
  • Monitor debtors payment patterns, into the bank the quicker the better and the more likely you are able to pay your creditors and other Cashflow needs.
  • Recognise there is a problem
  • Don’t be over stocked
  • Talk to your accountant about getting a qualified bookkeeper involved
  • Ask your creditor’s small instalment payments while things are tough it will show that your willing to make a commitment an d more likely give you more stock for resale if needed.

 

Conclusion is once recognised as a problem get help from your accountant like Connolly’s Accounting Services, we do more than just compliance work. We can help in managing your Cashflow.

 

 

Adrian Connolly
Adrian Connolly
cas@connollysaccounting.com.au

Adrian Connolly is a FIPA (Fellow Institute of Practicing Accountants), a member of NTAA (National Tax & Accountants Association) and holds a Bachelor of Business (Accounting) from La Trobe University. Adrian had more than 10 years’ experience in the primary production industry, in Sheep, Cropping Beef and Dairy. In 2001 Adrian completed his Accounting Degree and has been working as a Public Accountant based in the Goulburn Valley. As a sole Practitioner, Adrian is helped by his wife Janine in the Office Administration: Secretarial, Receptionist, Scanning Documents and Data Entry.

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