talking cents

April
March
February
January
    

Tips for better managing your cash flow, by our small business accountants in Melbourne

Running a business without running your cash flow is like not running a business at all! This part of your business impacts every other aspect, as it is the life blood that keeps it running, which is why our small business accountants in Melbourne have a few tips on how to better manage your cash flow.

Did you know that the cash flow for your business is broken down into three different components? These are:

• Accounts Receivable 
• Accounts Payable
• Shortfalls (low on money)

So our small business accountants in Melbourne’s CBD have come up with some tips to help you with better managing this part of your business:

• Determine your break even point
• Focus on the management of your cash flow and not just the profits
• Always try to maintaining cash reserves for bumps in the road
• Collect and follow up on your accounts receivables
• Encourage customers to pay faster
• Extend your payables as long as possible
• You can boost your sales with creative incentives
• Don’t forget that technology is your friend and gives you the ability to manage your cash flow remotely

It is important for you as a business to be aware that your cash flow is one of the most important aspects for you to look after and our accountants for small business in Southbank want to ensure that everyone gets a fair shot at running their business to the best of their ability.

As always, feel free to get in contact with our small business accountants in Melbourne with any enquiries that you may have.