Three ways to keep money flowing into your business
(SOURCE – https://www.news.com.au/finance/economy/australian-economy/australian-economy-weakest-in-a-decade/news-story/489d06b09ec07f1a63e1c580fc6fea9c_)
The nation’s economy is at its lowest level since the 2009 Global Financial Crisis, with data from the Australian Bureau of Statistics showing growth of just 0.4 per cent in the three months to March and in the last year only 1.8 per cent. In response, the Reserve Bank has slashed the official cash rate to a historical low while the newly elected Morrison Liberal government is promising tax cuts and spending to buoy the numbers up.
Regardless of whether the economy recovers or continues to slide, businesses still need to run. So to help you do that, here are three financial ways you can keep money flowing into your business no matter what the economy is doing.
1. Prepare a cash flow projection
Simply put, a cash flow projection indicates how cash is anticipated to flow in and out of your business depending on loans, contracts, payments and other factors. You can estimate your revenues and expenses, anticipating when the business might need a capital injection or a reordering of finances to cover any shortfalls.
By doing this kind of homework, you can prepare your business for any recession in the economy and also be on top of the details to take advantage of any growth opportunities.
2. Keep your books sharp
Automating the system with programmes like Xero can also relieve you of some of the burden, allowing you and your team to concentrate on sales, development and growth. Sydney Accounting are Xero Certified Advisors so can help out with any questions you may have about the system.
3. Speed up payments
With a faster payment timetable you will be able to increase cash flow to your business and have more options for money management. With a cash flow projection in your back pocket, well prepared books and faster payment conditions, your business will be better prepared for the financial downs and ready to take advantage of any rises that come.