Cash Flow Forecast

3 Tips to Combat Cash Flow Issues Now

3 Tips to Combat Cash Flow Issues Now

We’ve been working with a client who a few months back found themselves in a real spot of bother when it came to cash flow.

They were experiencing a sales slump which was heightened by some negative business events which were outside of their control. This perfect storm lead to a complete depletion of cash holdings in the business. Gone were the savings or cash buffers that once existing and these unfortunate business owners found themselves in unchartered waters with growing ATO debt, unpaid suppliers putting them on stop supply, and the inability to restock a warehouse with their top selling items. They had entered a vicious cycle and without quick action they knew they would be faced with ruin.

When we assessed all of the factors at play the number one priority for everyone was to get cash in and fast. It wasn’t about major structural or process changes. Sure, both were needed but right now they weren’t going to keep the business afloat. Quick wins were what we needed.

We've Got Your 2019 Cash Flow Forecast Sorted

We've Got Your 2019 Cash Flow Forecast Sorted

Happy New Year!! I hope you all took the time to celebrate your wins in 2018, enjoyed some well-deserved downtime, are feeling refreshed and ready to take on 2019.

So have you checked your business bank accounts? Are they looking healthy? If so, hats off to you and keep up the great work. If not, it sucks, but you’re not alone. The Christmas/holiday period through to mid-January is often the most difficult time to manage cash flow.

Let me set the scene, your B2B customers have all been on holidays, many haven’t settled their December accounts and may not do so until their finance teams are back from holidays. Everyone being on holidays also means that end user sales are slow into January, which is made worse by the fact that most people are about to receive their post-Christmas credit card statements. Once they get over the bill shock, chances are they’ll cut down of general spending to pay off the damage done in December and again sales will take a hit. All the while, you’ve had to pay leave entitlements to employees during the holidays while little, to no cash was coming in.  All of these factors aren’t good for business right now, or your cash flow over the coming months.