Managing Cash in Tough Times and for Good
Updated: Mar 1, 2019
Part 2 of our "Advisory Tool Kit" series: Cashflow Forecasting
Managing cashflow in a small business is arguably the most important factor in running a business. At the end of the day, if the cash dries up, the business fails.
Planning is also essential for tracking Goals (business and personal) and providing a concise scenario to take to the bank when looking to borrow.
That being said, most small business owners are flat out in the day-to-day operations of their business, generating sales, hand feeding livestock, paying bills and managing staff, to mention a few.
Rawson Baker Advisors utilise specific Cash Flow Forecasting tools that form part of our carefully curated stack of apps. These apps talk seamlessly to cloud accounting software pulling in live data that form the basis of a forecast.
A cashflow forecast allows a business to project revenue from sales, as well as money going out for expenses, to pay the often overlooked GST and PAYG obligations, as well as employee super and debt reduction. And between all of this it can allow owners to put in place GOALS to achieve personal ambitions and long term wealth creation.
Furthermore in the age of banking precariousness, the process of borrowing money will demand clean and concise reporting and forecasting.
By pre-empting peaks and troughs in cashflow, business owners can plan ahead and ultimately worry about one less thing in a busy life.