$$$ Cash Is King $$$
“Cash is King” – It’s a phrase that has been used countless times in the office and despite the commonness of the quote, there are really not three words that hold more truth when it comes to running a business.
Cash can be the difference between a yes and a no answer, between a wrong and a right decision and between a peaceful or sleepless night. Cash is like oxygen that the business needs to survive. Even the most successful business can fail without cash flow.
Cash is also the focus of the number one question that is asked during the tax exit meetings – “If the business made this profit, but where did the money go?”
The secret to being a smart business owner is to be informed – and being informed is easy. It’s as simple as looking at your income and expenses and checking when you expect to receive income and pay the expenses. Implementing that simplistic process for a 12 week future period will give you an indication of what balance you can expect in your bank account in 3 months time, how much GST you will owe and other cash obligations. This allows you to identify cash flow shortages or where excess cash will be available and in turn, assists you in making informed business decisions.
A cash flow can be done via excel spreadsheet or you can get in touch with us and find out about our advisory services. At IQ Accountants, we assist our business clients by offering solutions using cloud accounting packages and other available resources to ensure that you are meeting your goals. Call us today on 5576 0011.
