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Small business accountants from Melbourne provide advice on cash flowCash is commonly misunderstood as profits and profits does not equal cash reserves in bank. A profitable business might not have cash flow due to poor management of systems and controls in place. Therefore, it makes cash flow one of the most unpredictable elements for a new startup business. As no historical data is available to refer, you may not have any idea when extra cash reserves are expected in a downturn or when high and low seasonal periods will occur. As a result, having a budget, projected profits and cash flow forecasts are useful planning tools to measure actual performance by allowing proper management for the timing of cash in and out flows. |