Cash Flow Improvement | Cash Flow Management | Cash Flow Statement www.inverellbusinesssolutions.com.au
Cash flow is critical in your business.
Did you know that many really good businesses that are growing strongly and making great profits can actually run out of cash and end up in receivership or going broke?
A client of ours, David Levi of Levi Consulting a Sydney based insolvency firm estimates that insolvency impacts 200 businesses in Australia each week.
A growing business will have many demands on its cash. If you sell on credit, then if you are growing, your debtors will inevitably increase. Your stock may be increasing and new equipment may have to be bought.
On the books that may show that profits are increasing, but you may be up to the limit on the overdraft.
So cash flow is clearly something that you need to monitor regularly.
David Levi notes that one of the classic early warning signs of insolvency is a lack of cash flow forecasts or other budgets.
With many of these businesses they have got in to trouble without seeing that it was coming till it was too late.
Needless to say, running out of cash is something that you don't want to happen in your business.
So what are you doing to monitor your cash situation?
Just watching the bank account might tell you your current situation, but it doesn't help you predict what it will be in the future.
If your business is growing, we can help you to set up systems to monitor cash flow to ensure that these situations don't happen to you.
Why not take advantage of our complimentary meeting to review your cash flow and..
If you want to see David Levi's Ten Early Warning Signs of insolvency then go to www.leviconsulting.com.au/insolvency-expert
This has been Colin Ritchie for Inverell Business Solutions.
Inverell Business Solutions 0267223115 http://youtu.be/audexugcWdE