What’s your biggest worry for your business?
How to increase cash flow in your small business?
Cash flow tends to top the list for many business owners, and for good reason. ASIC’s report on corporate insolvencies shows that year after year, inadequate cash flow remains a key reason why businesses fail.
But it’s possible to get your cash flow under control — and even improve it. We know this because POP Business has supported many clients across various industries to do the same.
And we can help you start your journey to stronger cash flow. Today.
We’ll firstly go through the basics to give you an understanding of why cash flow is important to businesses, then we’ll share our best tips so you can manage your receipts and outgoings better.
What is cash flow?
Cash flow refers to the movement of money — what comes in and what goes out. Cash inflow happens when customers pay you while cash outflow occurs when you pay your bills.
If you’ve got more money coming in than leaving the business, then you have positive cash flow. But if the reverse is true, then you have negative cash flow.
Why is it so important?
Cash flow is a good indicator of financial health.
Put simply, negative cash flow is worrying because you can only spend more than you receive for so long before you go out of business.