Cashflow is such an integral part of every business, so why is it that none of us know exactly what it is and why it is so important?
We like to think of cashflow as the vital nutrition for our business to survive. Much like the body needs nutrition, your business needs cash to survive. A business can have many goals, but it is the cash that makes it possible to achieve those goals. This is why cash is so essential to a company; your body of a business will not survive long without the vital nutrition fueling it.
By definition, cashflow is “a real or virtual movement of money: cashflow in its narrow sense is a payment, especially from one bank account to another”. However, in reality it is so much more than this, cash flow…
However, just like our body, our cashflows have weaknesses, thus, we need to keep in mind some important factors. Those who we choose to work with, margins, pricing and marketing channels all affect our cashflow. We need to acknowledge that every activity carried out within our business will come at a cost. Whether it be marketing, development, social media or networking, costs will be incurred. We recommend, that every time you are making a business decision, ask yourself one simple question…
“in which ways will this activity of business decisions impact my cashflow?”
Tips for Managing Your own Cashflow:
If you need a hand managing your cashflow or have any other bookkeeping requirements please feel free to give us a call on 04 2329199 or leave you details below and we will be in touch.