Cashflow
It is not uncommon for early stage SME businesses to fall into marketing debt. This commonly occurs when the company, which relies on sales to stay afloat, underfunds its marketing campaign. As a result the health of the corporation starts to fail. The debt and marketing relationship During the initial stages of start-up, most businesses […]
The mantra of many successful entrepreneurs is the idea that you must spend money to make money. It is also one of the biggest reasons that some people fail to act on their business aspirations, because they believe that they don’t have the money required to take their business to the next level. I […]
Over the years we’ve heard plenty of grandiose plans for businesses that never eventuate and untold numbers of excuses for not hitting the targets that were bragged about at the start of the year. As accountants, we’re not really interested in all of that, what we’re interested in is the numbers because they tell […]
The strange thing is you can have a full order book and see that your business is really taking off, but if you don’t have a firm grip on the cash flow situation you could struggle to stay afloat and achieve long-term success. It is important to understand why cash flow matters so much to […]
New research shows that nearly 1 in 2 Australian businesses are leaving themselves vulnerable to bad debt by not performing credit checks on their existing customers. CreditorWatch conducted a survey asking questions relating to credit management responsibilities to business owners, accountants and credit professionals from small to enterprise sized businesses. Whilst 72% of all respondents […]
It’s that time of year (again) when you have to decide whether you should “take the hit” and write-off that bad debt and (subject to complying with ATO requirements) claim a deduction OR keep chasing the debtor. You can do both of course, but often once the debt is off the books and not front […]
Trains depend on power to move forward, just as businesses depend on a steady cash flow to succeed. One of the best ways to maintain a healthy cash flow is to understand which types of customers can change the course of your business, for better or for worse. To ensure your cash flow train remains […]
Sometimes, it’s inevitable that we have to deal with a slow or non-paying customer. Here are 5 benefits to registering a default against debtors that can help you and other businesses. 1. It can encourage a debtor to pay its debt faster and on time 2. It demonstrates that you take debt seriously 3. It […]
You’ve done the work, you’ve invoiced. Now you wait. Every business owner knows the challenge of getting debtors to pay on time. But is there more you can do to keep the collections train moving forward when other businesses stall? Put simply, yes. Businesses that are effective in making collections have aligned their credit control […]
By extending payment times to small businesses in the supply chain, large Australian and multinational organisations are effectively using them as ‘a cheap form of finance’, according to a new report by the Small Business and Family Enterprise Ombudsman (ASBFEO). The report, which responds to the Ombudsman’s inquiry into payment times and practices, highlighted the […]