There is a saying that turnover is vanity, profit is sanity and cash flow is reality. With inflation pressure, supply chain issues, and bank support getting harder to access, now more than ever this statement is so true. Here are some tips and tricks from the Robertson Bixley team to keep tabs on your cashflow:

Understand there are 7 causes of poor cashflow

  1. Debtors
  2. Creditors
  3. Drawings
  4. Debt
  5. Inventory
  6. Turnover
  7. Margin

Learn more strategies for healthy cashflow.

Atomic Based Habits

It’s essential that you develop habits to regularly monitor your actual results against your forecast. You should run monthly reports and monitor:

  1. Profit against budget, month and year to date
  2. Actual cashflow compared to forecast, month and year to date
  3. Gross Profit and Net Profit margin to track increases in costs

Benefits of a Forecast

  1. Peace of mind in knowing that your cashflow requirements for the next 12 months are known and adequately funded.
  2. A better understanding of the cash cycle in the business.
  3. Improved communication and relationship with your financiers.

How we can help

Spend some time looking at the webinars on our website.

Call us and discuss your situation and make some time to come in and plan ahead for the 2023 period.