Better Cash Flow Equals Better Business
An established finance specialist group had recently introduced efficient cash flow management strategies which are said to have been designed in helping clients to have more financial freedom and stability.
Just recently, the different strategies and procedures of the top entrepreneurs in Australia had been exposed by leading finance consulting company, Members Alliance Australia, with the aim of educating people about the importance of maintaining efficient and effective cash flow.
This recent announcement is said to have stemmed from reports that showed that 80% of Australian businesses have actually failed for the reason of poor cash flow management.
In fact, according to a Dun & Bradstreet study undertaken in February 2011, data showed that there are over 10,000 firms in Australia that had shut down in 2010, primarily because of poor cash handling.
According to analysts, debt collection should be one of the main considerations that retailers and entrepreneurs alike must seriously look into, suggesting that “delayed payments will take a toll on a business, whatever it may be.”
It is also stated by industry observers that though the signs of strength and resilience are being showed in the Australian economy as compared to other countries, there are still smaller businesses that have been encountering financial problems, which is primarily attributed to late payments and mishandling of finances. With the rot setting in, there are small business owners that are now in need cash, calling out for solutions to solve their financial burdens.
To resolve these problems, it is now being suggested by established entrepreneurs to hire an accountant or financial consultant to ensure that debts like cash advance loans are properly paid on time, and to increase the guarantee that cash flow is managed properly.
In addition, it is believed by many that discipline will also play an important role in business or even in the management of your personal finances.
It is even suggested by experts that business owners must try to master the basics of handling finances, starting with the issuance of invoices at the proper times, transparency of transactions and also by taking immediate action in case of non-payment by a debtor.
This is because for most businesses, these are some of the many ways where they not only ultimately protect their interests but also make more money as the business grows as well.
Alternatively, it has also been suggested by successful entrepreneurs to do some credit investigation when new customers and clients come on board. By doing this, you will be able to know if the prospective client will actually be able to pay up. If not, it has been suggested that it would be best to deal with the client on cash-basis transactions only, and in full, to avoid any future cash flow shortfalls.
Lastly, and more importantly, it has also been advised by industry experts and analysts that, whether it’s for business or personal purposes, you should try to employ the services of finance advisers and consultants. This is done in order to help you with the management of your finances and to help you have a more clear understanding of things.
To all intents and purposes, they are saying that for those who are experiencing some financial problems, you need to consult finance experts if you want to protect yourself and your assets from any untoward consequences.