New Year Cash Flow Tips

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New Year Cash Flow Tips

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With the holiday season only just winding down, some businesses experience cash flow problems at this time of year with key customers having temporarily shut down over the Christmas break, etc. – PowerPoint PPT presentation

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Title: New Year Cash Flow Tips


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Australian Bookkeepers Network
New Year Cash Flow Tips
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With the holiday season only just winding down,
some businesses experience cash flow problems at
this time of year with key customers having
temporarily shut down over the Christmas break,
etc.Heres a few handy cash flow tips that Ive
learnt along the way, and that you can use in
your business all year round no matter what
industry youre in
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Variation of Instalments On the taxation front,
consider varying your PAYG instalments if
business is not as strong this year as it was
last year.   Send Invoices out Immediately For
some reason, many businesses have a set routine
of sending out invoices at the end of the week or
at the end of the month. This unnecessarily
delays payment and can cause a cash shortage.
When you make the supply or receive the order,
send out the invoice!
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Minimise Excess Stock Aim to have just enough
stock to meet customer demand and not have your
store (if applicable) looking empty. Beyond that,
any excess stock is, in effect, tying up your
cash.   Discounts!  Consider offering discounts
to early payers. A word of caution though! Its
important to strike a balance between a
reasonable discount and your desire for early
payment. Offering sizeable discounts for money
that is due a few days later will end up causing
its own cash flow problems. As a general rule,
keep discounts small and require the payment well
in advance of the due date.
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Charge Deposits Consider charging deposits for
significant orders. Not only do you get cash up
front and guarantee at least part payment, but it
will make customers think twice before cancelling
their order.    Hope these tips help. Always
remember, cash is king!   Become a Bas Agent
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Thank You
Australian Bookkeepers Network Email Us
info_at_austbook.net http//www.austbook.net Call
Us 1300 856 710
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