“Revenue is vanity, profit is sanity, and cash flow is king.”
founder and CEO of Scaling Up.
Maintaining a positive cash flow is one of the most essential objectives in your business. This means that you have more cash flowing into your business rather than out of it. And as you receive more cash from customers, new business loans or investments, or sales of assets, you’ll find that your cash spending is decreasing, too.
But when a business has a poor cash flow, they’ll experience a number of problems in a domino effect. According to a study by Money.com.au, 52% of business owners struggle with cash flow issues. This includes being unable to pay suppliers or give salaries to employees, losing track of debt repayments and gaining penalty fees, and even having overdue invoices with customers. These are critical problems that can be solved with effective cash flow management.
Cash flow management is important for your business to grow and be financially secure. And for a small business owner, this should be a top priority.
Incorporating the best financial practices in your cash flow planning will improve the finances of your small business. Regularly monitoring and reviewing your cash flow allows you to accurately predict how much money your business will bring in and how much you can spend on growth and investment opportunities.
Rigorously reviewing it also ensures that you don’t overspend and that you stay within your budget. Without proper cash flow management, it’s easy to find yourself guessing how much money you have and end up overspending it. Or worse, spending money that was already allotted for something else.
Accountants are recognised as highly trusted financial advisors for small business owners. In an unpredictable world where the economic (and even political) climate is always changing, an accountant gives invaluable insight on how to maintain your financial security and business growth despite external factors. Managing your cash flow is one of the most important ways to do this.
We tailor our cash flow management advice to your needs. We ensure that you have the means to build your small business, keep it financially secure, and take advantage of opportunities for growth.
Our personalised advisory services focus entirely on your business and its success. We know there’s no such thing as a “one-size-fits-all” financial guide for all business owners. So, we study your business and finances and actively listen to your needs, your current financial issues or problems, and your long-term goals. This allows us to protect your financial affairs and help your business grow to its full potential in the best possible way.
We also provide tax planning and tax advisory to support your cash flow. And we pay close attention to how tax law constantly changes (though we know this isn’t the case for most business owners), so we’re excited to help you optimise your tax position and provide you the tax relief you deserve.
“Before working with HY Accounting we thought our business strategy and accounting was up to speed—wow, we were wrong. Michael and the team delivered a real and achievable growth plan which is driving us to double digit growth month-on-month. Thank you.”
If you want a trusted financial advisor that understands your financial needs and can help you bring more money in the business with good cash flow management, we’d love to partner with you.