The Importance of Cash Flow

Without an effective cash flow, any business will not survive very long especially in the current economic climate.

Many SME business are using GST and other taxes which should be held and paid to the ATO to maintain their cash for paying suppliers and their staff. This is only a short term band aid solution as the ATO have become quite agressive with demands for payment. This has resulted in many businesses now being wound up who in the past were able to forestall any ATO winding up proceedings.

It can be a tight rope act when maintaining and obtaining new customers. It can come down to best credit terms. However this can put your business at risk if you have a mismatch between receipt of debtors cash and payments to creditors.

Ways around this are debtors finance plus debtors insurance plus diligant maintenance of debtors ledger.

O'Connor Business Consulting can assist you with these and other options to help you focus on your core business matters without the constant worry of effective cash flow.