Businesses fail for a number of reasons but did you know even profitable businesses can fail.
Naturally businesses that continually make losses will fail.
Profit is an accounting concept whereby expenses incurred are deducted from revenues earned.
However, what if you don’t collect the revenues in a timely manner? Your own creditors will want to be paid but if your customers aren’t paying you promptly how do you manage.
You also need to fund capital expenditure, loan repayments and the tax man so if you don’t have a constant cash flow your business will struggle.
You will end up losing your credit rating with your own suppliers which can hinder your ability to do business. You could have the tax man continually hounding you for debts owed which can be both distracting and demoralising (how many times have we heard that you only seem to be working to pay taxes!).
Don’t let this happen to your business.
We are also able to provide hints and means to improve your own debt collection processes.
Please call us on 9548 5155 or click here to help you plan your cash flow.