Mastering the basics of cashflow: Six tips for keeping your business on track

When it comes to your business, cash flow is king regardless of your size and no matter what industry you are in. Cash flow is the lifeblood of your business – many small business owners in Perth know this truth, yet many still struggle with the fundamental cash flow definitions, basics or management strategies that actually maximise benefits.

Nowadays, our economy is uncertain. It is characterised by frequent market fluctuations and ever rising interest rates. Because of this, many small businesses with limited financial knowledge are struggling to stay alive, let alone thrive.

Poor cash flow management is such a large killer of small businesses. The first reason why such happens is because small businesses overstate their income and underestimate their expenses. Secondly, they don’t see cash shortage until they notice that they are running out of money when they pay for something.

Even if your company produces the best product or service in the world, it won’t matter if you run out of cash. With poor cash flow management habits, all of the hard work, planning and strategic thinking that went into creating and launching your business could easily be erased. Simply put, there is no better time than now to get your cash flow reality in check.

For more on your small business’ cash flow, read this article from Smart Company Australia: