Cash Flow Goals To Grow Your Business

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These are tips on how to get more cash coming into your business. For more cash flow management tips, read here: http://bit.ly/2ebCf3c

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Cash Flow Goals To Grow Your Business

  1. 1. Business Growth CASH FLOW GOALS TO WWW.EUSS.EDU PAUL MARTIN CHARTERED ACCOUNTANT
  2. 2. Cash flow Is the amount of money coming in and out of your business. Cash usually comes from selling your goods and/or services. The cash is used to maintain business activities, like paying for materials to make your products, employee wages, rent and other operating expenses. It is the main indicator that your business is doing well. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM
  3. 3. HOW DO YOU GET MORE CASH COMING INTO YOUR BUSINESS? EASTWAY UNIVERSITY OF HUMANITIES WWW. EUSS. EDU/ EIPA
  4. 4. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM Save at least enough cash that would cover 90 days' worth of your business expenses to cover any unexpected events like natural disasters, market fluctuations, poor economy, illness, and more. Tip No. 1 - Have cash reserves
  5. 5. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM Debts are not good for your cash flow. If you have debt, make it a priority to pay it back as soon as you can. As much as possible, avoid acquiring unnecessary debts. If unavoidable, make sure that paying that debt is your number one priority. Tip No. 2 - Avoid debt
  6. 6. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM Your net margin should be above 10 percent to have a healthy cash flow. If it is below that margin, then you need to reassess the status of your business and identify where you are falling short. Tip No. 3 - Set a target margin
  7. 7. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM Pay yourself a reasonable wage. You deserve it. And don't underpay yourself. This can affect your personal finances. Also, if you can't pay yourself enough, it only means that you are not confident in the ability of your business to make a profit. Tip No. 4 - Pay yourself
  8. 8. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM If you have a good cash flow, you will be able to save enough for capital investments and/or expansion, so always aim for this. This shows that your business is in a good financial position and that you are using your cash effectively. Tip No. 5 - Go for capital investments
  9. 9. These cash flow goals can help you to plan for the growth of your business. Depending on your business strategy, you may identify from these goals which to prioritise. PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM
  10. 10. Need help to establish good cash flow management practices? CONTACT OUR TEAM OF CHARTERED ACCOUNTANTS IN AUCKLAND ON (09) 576 4166 PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM
  11. 11. We also offer the following services: Annual Accounts, Tax Returns, and GST Online Accounting Business Planning and Development Rental Properties, Trusts, and more PAUL MARTIN CHARTERED ACCOUNTANT WWW. PMARTINCA. COM
  12. 12. The End KEEP YOUR BUSINESS GROWING! WWW. PMARTINCA. COM

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