A Hand Up for Small Businesses on Cash Flow

The ATO has produced a “Cash Flow Coaching Kit”, which is a free resource and designed as a value-add advisory tool for small business owners. It does not replace any existing accounting or financial tools, although it can be used to complement software accounting packages.

A hand up for small businesses on cash flow

With its tailored coaching conversations about cash flow management, the ATO’s kit can be particularly useful in times of financial stress. Cash flow problems continue to be a major issue for small businesses, and may indeed be more so after the past year of COVID woes.

Research shows: 

  • almost half of small businesses are under financial pressure within the first year, and this often increases into years two and three of business
  • 60% of small businesses cease operating within their first three to four years
  • 90% of small business failures are due to poor cash flow
  • small businesses who manage their cash flow effectively are more likely to succeed.

 

The resources in the kit can help small business owners better understand the actions they can take to manage their cash flow. This includes:

  • learning the fundamental concepts of cash flow
  • understanding how cash flows in and out of your business and ways to assess business viability
  • scenario planning to identify possible actions to improve performance by increasing cash in or reducing cash out in your business.

cash flow coaching kit

 

Related Link: 

Cash Flow Coaching Kit

 

www.mnygroup.com

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.

Leave a comment

MNY GROUP CHARTERED ACCOUNTANTS Copyright©2021

The content of MNY Group Chartered Accountants' website - mnygroup.com.au is original. Please do not copy, modify, distribute, republish, share, display or demonstrate all or part of the information and materials on this website without our written consent. The contents and materials on the website are only for reference and are not official financial advice or suggestions. According to the different situations of each individual/entity, please consult a professional accountant. Liability limited by a scheme approved under Professional Standards Legislation.
MNY Group Perth Pty Ltd as trustee for LHL Trust is an independent firm that operates in Perth under the same trading name. 
NTAA-logo
MYOB云端会计软件代理