20 April 2011
Recent figures from the Australian Securities and Investments Commission should prompt small businesses to tighten their payment processes, reports business magazine, Smart Company.
With insolvencies in February at a 10 year high, 7% higher than the height of the GFC in 2009 and 12% higher than 2010, the landscape for small business has been compounded by low consumer confidence, long payment cycles creating cashflow problems and the spate of natural disasters that have hit Australia’s economy.
With cashflow typically tight this time of year, businesses can’t allow accounts receivable to get behind. Monitoring actual cashflows to budgets is also highly important and may just save a business. If you are not using a budget model, please speak to us.
For more information, read the full Smart Company article here.
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This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.