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Cashflow Management over Christmas and New Year

Announcement posted by MSI Global Alliance 06 Dec 2012

For a lot of businesses and business owners the season can be less than festive, especially for businesses in the small / medium sector.

T
raditionally business activity slows over this period (with the exception of some notable sectors such as retail or leisure). What this means is that, unless adequate reserves have been accumulated in the lead up, stresses for owners due to poor cash flow can increase. The good news is that it is not too late to do something about it.


So with just weeks and days until the New Year, here are our top 10 tips to avoid a cash crisis:

 

1) Review and update your profit and cash flow budgets to identify potential problems

2) Reduce or defer expenses

3) Have a sale to clear slow moving stock

4) Offer discounts for upfront payments for services/projects

5) Prepare a daily or weekly cash flow plan that is reviewed and updated daily

6) Actively pursue delinquent customers for payment

7) Proactively negotiate with financiers for extended facilities well in advance

8) Proactively communicate with suppliers for extended credit terms of payment deferrals if possible

9) Get help from your advisors

10) Move fast - waiting until the problem is real may be too late

 

-       Ends –

 

For further information or to schedule an interview, please contact Maree on 0411 446 484 or maree@strategyco.net

MSI Global Alliance: International association of accountancy and law firms

MSI Global Alliance (MSI) is a top ranked, international association of independent accountancy and law firms. Since 1990, growing entrepreneurial companies have benefited from seamless access to the interrelated expertise of accountants, auditors, lawyers, tax advisors and other specialist professionals within over 250 member firms across 105 countries worldwide. In Australia and New Zealand, MSI consists of 14 independent legal and accounting firms that provide specialist services to local and overseas businesses.

For further information about MSI visit www.msiglobal.org or to go direct to the Australian and New Zealand pages www.anz.msiglobal.org