More Than Just Accounting – Greenlion Talk About Cashflow

Greenlion is all about doing more: making your business more efficient, more profitable, more manageable and more fun, and one of the more pressing concerns in any small business is cashflow.

Small businesses live and die by cashflow – it’s your lifeblood as a business owner, and Greenlion have several ways to help improve your cashflow, starting with chasing outstanding invoices. You need to follow up on invoices that need to be paid, sending emails and phoning your customers to try to get that money in.

Secondly, you need to change your payment terms. Even if it’s only for new customers, reduce your payment times and think about introducing part payments up front. Similarly, why not make it easier for your customers to pay you? For example, can you sign your clients up for direct debit payments? Can you accept credit cards? Is there a prompt payment discount that would help get the money in sooner? Consider all the barriers that might prevent your customers from paying you and see if you can go some way to breaking them down.

The best and easiest way to boost your business’s income is to put your prices up. Investigate what your competitors charge and don’t underrate your skills – this is so common with Kiwi business owners. Greenlion have many clients who think that because they’re small or their overheads are low, they can’t charge much, so they help them see the value they provide, and how rare this quality can be in a small country like New Zealand.

Finally, you need to sort out your cashflow before it becomes critical, by first knowing where your cash is coming from and what you’re spending it on. Just like with your personal finance, knowing what you earn and how you spend it is vital for accurate budgeting. Then Greenlion can help you create a cashflow forecast so you’re not left floundering when you need to pay your GST or provisional tax. Forecasting your income will help you manage your money and prevent cashflow problems from slowing down the business.

Greenlion (formerly MHK Chartered Accountants), fringe CBD Auckland Chartered Accountants who specialise in business structuring and legally minimising all types of taxation obligations, welcome a no-obligation discussion free of charge.  For more information please contact Ian Malcolm 09-917-2893 or 021456225, or Aaron Neels 09-917-2897. For more information on tax minimisation, chartered accountants Auckland, or business advisory see https://aucklandaccountant.net.nz/ .