Cash Flow Budgeting

Ask almost any business owner what their biggest concern is and invariably you will hear “cash flow”.

Despite this, cash flow budgeting is an overlooked tool for small businesses. Taking the time to analyse your cash inflows and outflows is the clearest way to illustrate how your business is performing and where you may be able to make improvements. Analysing previous cash flow trends and anticipating future trends allows you to see where you are at now and what changes you may be able to make to improve your bottom line. 

Knowing what your GST and PAYG(W) liabilities will be and setting aside money relieves the stress that often occurs when Business Activity Statements are due. Anticipating when the business is likely to experience high or low sales turnover allows you to plan for additional stock purchases or reworking of employee rosters.