Cash Flow Statements



Keep a close eye on your cash flow

Did you know there’s a difference between profitability and cash flow?

No? Then it’s time to talk to a bookkeeper about preparing a cash flow statement for your small business.

It’s entirely possible for your fast growing small business be profitable while at the same time run out of cash.

A cash flow statement can tell you if this is happening.

Yes, profits are incredibly important if you’re running a small business, but cash is even more important.

Small businesses run on cash and knowing where cash is and where it’s gone is one of the most important things a small business owner can know.

Cash flow counts

A cash flow statement can tell you a great deal about your business. A cash flow statement not only accurately details your income and outgoings; it provides a level of comfort around the solvency of your business in the immediate future.

Your annual cash flow statement will highlight months which may be more of a strain on resources and which may require more planning than others and help you make informed decisions about the right time to put on more staff or purchase new equipment, for example.

We also recommend regular six-weekly cash flow statements to help you manage your financial obligations with confidence. Regular cash flow statements provide peace of mind as substantial expenses such as rates or insurance can more easily be accommodated if they’re anticipated.

Having an up-to-date cash flow statement is also absolutely crucial if you’re thinking about borrowing or inviting investors to join you in your business.

Pick up the phone and call us on (03) 9585 2255 to learn more about growing your business with confidence. We’ll put you in the picture when it comes to your cash flow.

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