MANAGING CASHFLOW IS THE
FIRST RULE OF BUSINESS FINANCE
Every business – big or small – needs to understand and manage their cash flow
It is very rare to find a business that has been around for a while that has never experienced cash flow challenges – we are yet to find one.
Having enough cash flow to run your small business will make or break it. A lack of cash is what will kill a business – and this can happen very quickly. However, cash flow issues are usually the symptom of any number of other issues in the business.
Cash flow problems are rarely the cause of the failure rather they are the symptom of other failures.
If you are not managing your cash flow nothing else will matter. In this situation cash is not just king - it is everything.
Do you have a cashflow or business finance problem?
You need to ask yourself all the following questions about your cashflow – and then you need to do something about it.
Is all your tax up to date - GST, provisional, terminal and PAYE?
Are you being paid on time by all your customers?
Are you able to pay your suppliers on time?
Are you able to comfortably meet your monthly bills, like rent, electricity and rates?
Does the payroll leave you without cash every pay run?
Can you comfortably service your loan repayments?
And are you able to pay yourself something?
Are you pricing correctly?
Are your margins large enough?
If you are struggling to meet your cash flow needs every month you have to understand why - and you need to do this quickly. If you are getting into an ever-increasing cash flow hole you must act. When things go wrong in small businesses, they go wrong quickly.
We’re here to help
We can help you identify why your cash flow isn’t where it should be. We know business financials and can look into every aspect of your financial statements – profit and loss, cash flow and balance sheets. All these reports tell a story and at times, as small business owners, we may not see what they are telling us.
At Pinpoint Business we know how to pick these reports apart and dig deeply into your business. If these reports are not telling us the story as to why your cash flow isn’t what it should be, we need to get these reports working for you. Operating a business without good financial reports is likely sprinting in the dark – it’s dangerous and won’t end well.
Once you have quality reports that tell us the story, we can then work with you to do whatever is necessary to get your cash flow back on track - no matter how unpleasant that might be.