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Business CASH FLOW
Cash flow is the lifeblood of your business. Profit precedes cash. With insufficient business cash flow your business will show signs of stress or struggle. Suppliers start to delay or withhold services, increased time is spent pacifying suppliers. Further still, your focus is taken from the business and is placed on survival.
We offer the following solutions to business cash flow management or shortfalls:
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Business cash flow review and recommendations
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Cash flow forecasting to enable you to build a cash buffer
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Navigate you and your business through cash flow shortfall period
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Business efficiency recommendations
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Build the necessary paperwork for a loan to fund cash flow if required
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Build in financial processes to ensure your business grows
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Growth advice such as partnerships, acquisitions or merger
Managing your Business Cash Flow
Business Cash Flow Related Articles
8 out of 10 businesses fail owing to cash flow management problems. Cash flow restrictions affect many small businesses from growing too quickly, cash burn rate being too high, seasonal sales, slow or long sales pipelines. All of these hinder the growth and the cash flow availability with in your business.
Our CFOs have put together a few tips to ensure that your business cash flow management is better prepared:
1. Keep your budgets, forecasts and accounts up to date.
This can be as simple as paying for a software to automate invoices and payment reminders. Also this should offer you a 'at a glance' view of your current cash flow position.
2. Manage your collections better.
Don't let too many invoices fall overdue, it may impact your cash flow more than your realise.
3. Manage your inventories.
Make sure that you are not sitting on too much prior to revenue / collections. If your cash flow is one-sided then it can hinder your subsequent growth.
4. Don't mix your business and personal finances / assets.
Leveraging your successful business to manage your personal cash flow such as to buy a car or boat for example, may pose negative consequences down the track when you want grow via investment, loans or even sell your business.
5. Build a business cash flow reserve tailored to the needs of your business.
This can be a cash reserve placed in a separate account, locked away for emergencies. If you are lucky enough not to be in business where reserves are required, it is still good practice to do this for items such as tax payments and superannuation.
6. Monitor and review frequently.
If all else fails, get a second opinion to review your accounts and business cash flow forecasts.
Preparing for a Business Loan? Read our 8 steps before you apply.
Obtaining a business loan or funding is a little like running a marathon – you need to be prepared!
Recession Proof your Business. Part 2 – Cash and Strategic Funding.
8 out of 10 businesses fail due to poor cash flows. As a downturn starts to bite, customers are slower in paying, cash reserves dissipate, you start to delay payments to suppliers in order to prioritise salaries.
How CFO Evolve helped an Australian Retailer to gain a cash flow loan for business growth
A seasonal low-point at the end of the year, substantially increased inventories, tax liabilities due and payable and the need to pay increased salaries created a perfect storm of cash required.
How can CFO Evolve Help with Business Cash Flow?
A dedicated and highly experienced CFO will be assigned to work inside your business with you to review and develop a plan to manage your business cash flow. We will build a 3 way forecasting model and implement a budget and your business cash flow forecast so you have certainty on your business' future and consequent growth plan. Once designed, your dedicated part-time CFO can and push the plans through the business to ensure the management team understand their accountabilities and targets to achieve the plan.
Our approach is centred on delivering practical cost effective solutions that help improve our client’s financial management, strategic alignment and ultimately profitability. We have proven results with current and previous clients of increasing multipliers for investment, securing capital, loans for growth and paying back loans within 12 months whilst continuing to grow the business. Our team of part-time CFOs are highly experienced, CPA qualified and have all led ASX listed companies from a CFO or CEO function.
If you would like a free business review or discussion on business cash flow, cash flow funding help or preparation please contact us below.