Tag: cashflow

Holiday breaks are a chance to recharge for the year ahead. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time can be stressful without careful cashflow planning. Even if you do continue to operate through the holiday season, your customers’ financial behaviour…

As the holiday season approaches or if you’re gearing up for a well-deserved break, maintaining control over your small business’s holiday cashflow is crucial for a healthy work-life balance. Discover essential tips to keep your finances in check during the festive season. Plan Ahead for Overheads and Salaries Understand that even when you’re away, overheads…

Optimising cashflow is essential for businesses, requiring a clear understanding of the pivotal difference between profit and cashflow. While profit mirrors invoiced work or goods sold, cashflow represents the tangible money in the bank. The primary challenge lies in minimising cash lockup, where funds become entangled in work in progress or outstanding invoices. Key Processes…

In the pursuit of optimising business finances, high overheads can pose a significant challenge. While smaller businesses excel at meticulous expense management, the growth of a business can introduce layers of hierarchy, potentially leading to wastage. The key lies in conducting an annual review of overheads, ensuring efficient spending without compromising essential resources. Consider these…

In the quest to optimise cash flow, sales levels—stands as a significant hurdle for many business owners. It may seem apparent, yet the impact of inadequate sales on cash flow, leading to a perpetual increase in overdrafts, cannot be overstated. To ensure the viability of your business without continual reliance on external funds, addressing this…

Business owners often prioritise profit and cost reduction, but it’s essential not to overlook the significance of your Balance Sheet. Even profitable businesses can face financial challenges, making your Balance Sheet a crucial indicator of your business’s solvency. Here, we explore four critical areas to focus on within your Balance Sheet for lasting success. Profitability…

In the realm of business, cash flow serves as the lifeblood, but working capital acts as the health checkup vital to keep your business thriving. Regularly assessing your working capital becomes even more crucial during times of economic uncertainty. This article delves into understanding working capital, its significance, and strategies for maintaining business success. What…

In the world of business, maintaining a healthy cash flow is essential, and one key factor in achieving this is effectively managing your debt collection. But how do you measure and improve debtor days? What Are Debtor Days? Debtor days refer to the average time it takes for your customers to settle their invoices. While…

Have you ever found yourself in a meeting with your accountant, celebrating a surge in profits, yet still wondering where your cash has disappeared and how you’ll meet payroll the next day? If you have, you’re not alone. The stark reality is that cash and profit are not one and the same. In this article,…

Cashflow is vital for your business’s health and can often be a source of stress. To boost your cashflow, consider these 10 straightforward tactics: Set Clear Terms of Trade Establish clear Terms of Trade for every project. Define your invoicing procedures, expected payment timeline, and consequences for late or non-payment. Offer Payment Options Explore payment…

The key to a great business is cash flow. In our latest seminar, we’ll be sharing strategies to help you manage your cash flow and successfully grow your business. On 22 November from 12-1pm, Sharp Accounting will be running our Cashflow Management Seminar. This will be held at our offices here in Ballarat. Click here to…

Ewen challenges you to rethink your fixed costs – are they actually fixed? When was the last time you reviewed your contracts? There could be some significant savings for your business by ensuring you regularly review and manage your overheads and fixed costs.