Managing Cash Flow Made Easy

Cash is vital to the ability of a business to survive and prosper.  Careful monitoring and management of  cash coming in and cash going out is required.  Experts recommend you should have sufficient cash in reserve to be able to pay normal operating costs for at least 3 months.  This may seem like a big ask but some tips than can assist you to turn this into a reality for your business are:

  • Issue invoices promptly & regularly chase outstanding payments
  • Reduce terms of payment.  If your payment terms are 30 days change them to 14 days
  • Consider offering a discount for prompt payment
  • Define a credit policy which includes setting of credit limits and credit checks
  • Asked suppliers for extended credit terms
  • Reduce stock levels

Write a cash forecast.  This will enable you to predict the floods and droughts of cash.  (Why is it there always seems to be a drought at precisely the time you need to pay the Bas?)  Always make sure any excess cash is transferred to a high interest online saver account until it is need

What can a business plan do for your business?

A business plan can play a vital role in achieving a successful business and personal life. (Yes really!)

The process of writing a business plan is an indispensable learning experience.  It focuses your thinking and it forces you to take an objective and critical view of your business.  Successful people make sure their success in business will also help them achieve their personal goals.  As the saying goes Work to live not live to work! Some benefits of a business plan include:

  • Helps to challenge old ideas and create a culture for new idea and initiatives
  • Enables problems to be recognised and solved
  • Increases not only your motivation but the motivation of you employees
  • Enables growth to be planned and capital requirements identified

Having a map of where you are heading gives you more confidence, a reason to jump out of bed in the morning, convince investors, lenders and employees of the direction in which the business is going

Happy Planning!

Myob Tips

There a lots of ways to do things in Myob. The important thing is to use the way that makes the most efficient use of your time.

  • For transactions you have on a regular basis such as bank fees use recurring transactions
  • If you are always having to modify reports to suit your needs then save the report as a custom report
  • Do you make eft payments to more than 20 suppliers a week?  Then sign up for myob m-powered payments
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