The next step is to regularly monitor your actual cashflow against your budget, enabling you to prepare for upcoming cash outflows and respond to changes in your business quickly.
Our role as financial advisor, is to help you understand your cash flows, and identify issues that require corrective action. This is a continuous process in the management of your business, and allows you to make business decisions confidently.
Benefits of understanding cashflow
It allows you to monitor your actual cashflow against forecast cashflow from your accounting software. This provides peace of mind that your cashflow is within available funding arrangements.
It helps you understand the key cashflow drivers within your own business for better decision making. Cashflow planning enables you to predict and plan for large cash outflows and allows you to look in the right places to reduce costs.
It improves business processes that maximise cashflow, profit and business value allowing you to drive business to achieve your goals.
It identifies ways to avoid late payment penalties and interest charges from suppliers.
Areas of your business that can impact Cashflow
Nexia New Zealand can assist you with creating your cashflow plan. Our experienced staff are also able to provide insight into various ways you will be able to improve your cashflow. Click here to get in touch.
January 29, 2020