Small Businesses starting to feel cash flow pressures…
With some small businesses starting to experience cash flow pressure, it is important to check your business’s financial position, and where necessary, take remedial action.
A recent survey of small-medium business owners by Xero was published here and shows some are starting to feel stress.
Businesses can utilise tools in Xero like the reports under the Business tab, then select Short-Term Cash Flow or Business Snapshot to assess their current position.
The Analytics Plus Tool in Xero is also available on extra subscription and tends to suit businesses with robust internal accounting practices (Customer invoices entered and reconciled regularly, as well as Supplier invoices entered when received, not just when paid).
A short term rolling Cash Flow Spreadsheet (3 mths) can also be helpful to predict possible dips in cashflow. Keep it simple (simpler the better really), but a free detailed template is available here.
Of course, Holmans encourage all business owners to regularly monitor their budgets and expected cash position (cash is king). So don’t ignore any concerns or leave it to the last minute. Instead, consult with Holmans should you require assistance. The New Financial Year is a chance to set some new goals and implement new business practices to ensure a successful year ahead.
Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.