Business Cash Flow Checklist

Business Cash Flow Checklist

The Business Cash Flow Checklist is a useful resource to independently evaluate the financial health of your company. There are many aspects to having a successful and profitable company. However, the single most important skill is mastering business cash flow as your company grows, because the #1 reason for business failure is insufficient cash flow.

If you want predictable cash flow in your business you’ve got to learn what to measure in order to get there. Otherwise, how will you know you have met your goals and level out the highs and lows when it comes to cash flow.  Break even points are another measurement that allows us to know when we have our bills covered monthly, importantly can you pay yourself. Predictable business cash flow can ease a lot of stress and allow us to focus on other important operational areas. Explore the Australian governments “Entrepreneurs Program” as another avenue to capital as you work through the business cash flow checklist.  

Cash is King

  • Is your cash flow management style chaotic or in control?
  • Do you constantly seek out short-term business finance?
  • Is your business providing you with the lifestyle you dreamed of?

Learn the small business principles of cash flow management by working through your own business cash flow checklist. Review your internal sources to reduce stock levels, reduce overheads and watch out for theft and fraud. Review your customer payment cycle, terms and overdue accounts and offer discounts for cash payment. Develop a solid system to manage your suppliers and track the relationship. Negotiate favorable payment terms such as paying by installments or use interest free credit card cycles. 

Business Cash Flow Checklist Review

If you take a truthful critical review of your business, you will recognize gaps and potential negative traps on the realistic financial health of your company. Before you start, remind yourself WHY you started this company? Most importantly make sure your business operates entirely for the purpose of providing you with a profit, not just a job.

The journey to managing business cash flow is unlikely to be a smooth one. Along the way, there will be unforeseen expenses, costs blowouts and under performance of sales departments to meet projected budgets. If you are a new business without 3 years trading history, traditional banks are unlikely to lend your money. The Business Cash Flow Checklist takes a independent first step approach, ensure you consult with a professional accountant to confirm the financial health of your company.

Business Cash Flow for Technology and Innovation

As the business grows, investment into technology upgrades will be required in order to stay competitive. This can often be a major capital expenditure and if not planned appropriately in advance, can impact yor business cash flow. This off-course is highly relevant to the type of business you operate. How innovative is your industry sector in embracing new technology that could easily make your product or services redundant. Investment into a professional sales and accounting platform is essential to track and report on the cost and profitability of delivering your different products and services.

Business Cash Flow for Strategic Growth 

For a new company the main focus is on building a solid revenue base while building up the profit margins. For an established company the focus shifts to a more tactical or strategic plan to keep momentum, or to speed up growth through acquisition or mergers. This is also a dangerous time for a company if it grows too quickly, where management and current systems may not be adequate. This could have a spiraling negative effect on customer satisfaction, quality control and ultimately revenues. Business cash flow success is closely aligned with the growth plans of the company, to ensure there is sufficient capital to implement its strategy

How to use the Business Cash Flow Checklist 

  • Identify the critical cash flow areas of the business
  • Assess the management of your debtors and creditors
  • Quickly determine the your companies liquidity to better manage cash flow
  • Review your pricing and cost of goods or services to remain competitive
  • Understand your assets, liabilities, equity and business cash flow before borrowing money
  • Use the Business Cash Flow Checklist as your building blocks to mastering money 

Luckily, we’re here to help! Accrutus Capital is committed to increasing awareness for SMEs providing this generic business cash flow checklist. We can advise on different working capital finance structures, therefore saving your business time and money. Call us today at 02 9006 1327 and speak to your finance specialist at Accrutus Capital. We might just be able to help boost your business cash flow with up to $100,000 instantly, with no security required.

Looking to fund your cash flow?

Business Cash Flow Unsecured to $100K

  • Order supplies
  • Pay invoices
  • Hire more staff

Looking to leverage your assets?

Business Cash Flow Secured to $1 million

  • Purchase equipment
  • Facilities and production
  • Vehicles and heavy machinery

DISCLAIMER

The disclaimer covers content, comments, responsibility, links, government and local laws, jurisdiction and communication methods. None of the contents on this website or blog should be construed as any kind of advice or recommendation. Nothing in it should be taken to constitute a statement that is intended to influence a person or persons in making a decision regarding any investment or financial product. This website or blog does not purport to be complete, accurate or contain all information which its users may require to make an informed assessment of whether to invest in any Offer listed through Accrutus Capital Pty Ltd.

$20,000 asset tax write-off extended another win

$20,000 asset tax write-off extended another win

Extending the $20,000 asset tax write-off scheme once again is another win for small business tax deductions. The Australian federal government’s recently announced 2018 budget on 8 May. Which continues the favorable environment for over three million Australian small business owners needing that helping hand to grow and prosper.  (more…)

5 Key Small Business trends to watch in 2018

5 Key Small Business trends to watch in 2018

Small business trends are well and truly into play for 2018, as we see these filter down into a number of key areas where SMEs should pay attention to. to. Australia’s economic and political environment does impact all levels of society, whether individuals, families or companies large and small. Small business trends start to have momentum when policies that are set by the current government start to take affect, and the legal framework dictates how  business owners operate. The two global superpowers of the USA and China also influence local market trends and affect consumer sentiment, employment and spending confidence. (more…)

How to use Invoice Finance for Growth

How to use Invoice Finance for Growth

Invoice finance is a business funding solution that helps to provide cash flow for growing businesses in an easy and affordable way. If preparing for a busy time of year or securing cash flow to take on new projects, then invoice finance is an ideal solution for growing businesses. Cash flow finance or accounts receivable funding is an unsecured cash advance that you receive against outstanding invoices.

(more…)

Cash flow Management

Cash flow Management

Cash flow management is essential to small business finance requirements to provide continuity of trading and that it has sufficient funds to meet daily expenses and any debt payments due. The management of working capital involves managing these 4 aspects of the company’s operations. (more…)

10 Reasons the Bank won’t lend you money

10 Reasons the Bank won’t lend you money

Alternative SME money is a form of funding that is not provided by traditional lenders such as banks. Funds are sourced from private lenders, pooled investment schemes, wholesale financiers, peer-to-peer, online and subscription-based loan funds. Because each of these is slightly different in terms of the loan solutions they offer, compared with traditional small business finance. Its important to research the pros and cons of alternative SME money to determine if these options will suit your business needs.

(more…)

Is alternative capital a viable finance strategy?

Is alternative capital a viable finance strategy?

Alternative finance offers a new solution to traditional small business finance such as constrained access to lending, higher productivity costs, training staff, managing legal and regulatory requirements which put an enormous strain on the companies resources.

Australian small businesses account for 95% plus of companies and employ over 70% of the population. However, they face increasing challenges to operate competitively in the globalized technology driven world.  (more…)

Alternative lenders aren’t going away, they’re just misunderstood

Alternative lenders aren’t going away, they’re just misunderstood

Alternative lenders are here to stay. Fast forward to 2018 and the Alternative Lending industry has matured and undergoing some consolidation across borders. This is an update on the 2016 view of the AltFi industry as it emerged from the global financial crisis. Lending was among the earliest segments of finance to be disrupted by the technology revolution currently sweeping the industry.

(more…)

Small Business Finance Tips

Small Business Finance Tips

This is the secret to your small business success. Management must focus on their financials which can fall by the wayside when your consumed with the day-to-day operations. Unfortunately, losing sight of a company’s financial health, even for a brief period of time, can result in big problems. Financial problems are insidious which creep up slowly and often go unnoticed. Before the owners realizes what’s happened, a business can be drowning in debt and strapped for cash. Keep a close eye on these 5 key small business finance tips to ensure that money problems are dealt. (more…)