Bookkeeping: The importance of keeping it up to date
- Serving Perth & Melbourne Businesses
- admin@axiapa.com.au
- 1300 497 790
Poor cash flow is one of the biggest contributors to small business failure. To beat the odds and succeed in business, it pays to conduct regular cash flow forecasts. Here’s what it should include.
This figure is an estimate of what you expect to bring in from sales
Depending on your business, sales won’t be the only contributor to company profits.
This will differ from industry to industry – a retail business will have vastly different payment terms from an IT company. If you have 30-day terms, you may expect to receive payments one month after invoicing or later.
Both direct and indirect expenses should be factored into this figure. Make sure you also take into account the timing of each payment, as you probably won’t pay all outgoings on the same day.
Most businesses are in a constant state of flux. Even if your cash flow remains steady for several months, an unexpected event can affect your best-laid plans. So include ‘what-if’ scenarios in your forecasting.
With Axia, not only will you have a professional bookkeeper look after your accounts, you will receive regular, simple-to-understand business reports giving you a better insight into how well your business is performing.
In addition, all clients have access to our cash-flow strategies to make their business more profitable.
Filed Under: accountant perth, bookkeeper, bookkeeper perth