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Cash flow – tips and traps

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A growing business is likely to cause a dent in your cash flow, but careful money management will help you trim the costs.

Tips

  • Pay your suppliers as slowly as you can without burning relationships.
  • Consider hire purchase or leasing, such as for cars or office equipment.
  • Negotiate on prices with all suppliers – don’t take their first price.
  • Plan by saving cash for slow periods, such as Christmas.
Traps
  • Don’t annoy the Australian Taxation Office. Their penalties can hurt.
  • Don’t double dip into business revenue for home spending purposes.
Last word!
  • Remember a business can withstand much longer periods of no profit than they can no cash flow. If your business can’t meet bills when they fall due, you will be out of business.
  • Audit your cash flow practices.
  • Expert help could be a game changer — accountants, bankers, coaches.
  • Are you finance savvy to maximise your cash flow?

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice

Published on: Wednesday, May 12, 2010

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