Cash flow problems are usually structural rather than temporary: terms that favour customers, stock held too long, or tax obligations that arrive as a surprise because they were never provisioned.
We build a forecast you can actually maintain, identify where cash is trapped, and set aside for BAS and income tax so the obligation is funded before it is due.
What this covers
- Rolling 12-week and 12-month cash flow forecasts
- Debtor terms, collection and credit policy
- Stock and work-in-progress management
- Provisioning for BAS, superannuation and income tax
- Funding growth without starving operations
- Facility structure and working capital finance
Effective cash flow management tips for business
When it comes to running a small business, cash flow management is king. Effective cash flow management is the difference between running a successful business and, unfortunately, going out of business.
We’ve all heard that ‘cash is king’, yet cash flow is an area of business that is often neglected — and managing it can be one of the biggest challenges business owners face.
Plan, monitor and prepare a cash flow statement
A good cash flow forecast helps you monitor when money comes in and goes out, identify likely surpluses or shortages, and spot warning signs early. Cash flow statements are indicative of your company’s health.
- Cash from operating activities — how much money is flowing into your business
- Cash from investing activities — money used to invest in the business and its products
- Cash from financing activities — money spent paying off obligations such as dividends
- Net change in cash — cash gained or lost across investing and financing
- Net cash — your beginning and ending balance — the cash you have on hand
Tips 1–4: books, credit, invoicing and software
- Stay on top of your books — Use cloud-based accounting software to manage bookkeeping and automate data entry.
- Implement effective credit control — Run credit checks on new customers and set clear, straightforward payment terms.
- Don’t wait to send invoices — Invoice as work is completed rather than waiting for month end.
- Invest in Software as a Service — Licence software to spread the cost and streamline your processes.
Tips 5–8: cut, lease, outsource and plan credit
- Cut where you can — Use proper reporting to find under-performing lines and reduce overheads.
- Lease your equipment instead of buying it — Avoid large lump-sum outflows and keep cash flow regular.
- Outsource certain tasks — Access specialist skills without the cost of hiring.
- Have a line of credit handy — Arrange credit while your numbers are good, before you need it.
Tips 9–11: deposits, customer credit and payments
If you need assistance with cashflow planning, we are here to help. Contact our office to discuss how you can better manage your small business cashflow.
- Don’t be afraid to ask for a deposit — Cover staffing, goods and materials upfront.
- Examine your own lines of credit — Reduce credit or increase interest for customers who persistently pay late.
- Restructure your payments and collections — Balance vendor payment dates and use competitor pricing as leverage.
Further reading
Guides you can download
Practical PDF guides prepared by our advisers — free to download and keep.
