Unique Content Article on Cash Flow Management, business management, small business accounting,bookkeeping, accounting

<h2 class = 'uawtitle'>Does Your Small Business Employ Best Practices for your Cash Flow Management?</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Sarah Ocre</div><br /><br />
<div class='uawarticle'>The key to running a successful business is through effective cash flow management. By doing this the business owner will have the necessary tools required to understand cash flow issues within their business.<br />
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The common misconceptions by small business owners, discussed below, results in many business' failing. Don't be a statistic, read on and understand the benefits of cash flow management.<br />
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Through a recent announcement by the Australian Taxation Office, we have discovered that Australian small businesses cards approximately $9B in debt from their Business Activity Statements. This highlights that businesses are not employing effective cash flow management techniques within their operations. A Dunn & Bradstreet report about debtor's outstanding figures indications an average of about 53 days. This combined with the ATO data highlights a chronic cash flow management problem within small businesses. Regular reviews of your cash flow with your accountant or bookkeeper is key to staying on top of this.<br />
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Many small businesses that run at a profit still fail from poor cash flow management. This is because the general application by small business owners is 'PROFIT' = 'CASH'. This is not the case.<br />
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Mismanagement of cash flow can be using cash to purchase inventory that sits on the shelf for ages, having outstanding debtors that are long overdue or letting your creditors pile up. Your cash flow can be suffering in the background when your monthly reports is showing a profit. At the end of the day, keeping on top of you cash flow should be your priority, not profits.<br />
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It is very important to have a well planned process in place to reap the benefits of your cash flow managment.<br />
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Proper cash flow management helps identify key areas where cash is locked up and may need to be reviewed. Have you ever wondered where all your cash is going, even though your business is running profitably? This is where cash flow management can produce the data needed to help you as a small business owner make better decisions.<br />
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Data based decisions are always the best. A small business that understands their income statements, balance sheets, forecasts and cash flow statements are going to be in a better position to make good decisions.<br />
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About the Author:<br />
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<div class='uawlinks'>Effective Cash Flow Management starts with an experienced <a href="http://www.balancethis.com.au/services/small-business-bookkeeping/">small business bookkeeper</a>, check out <a href="http://www.balancethis.com.au">Balance This!</a> is Brisbane's leading bookkeeping provider, offering Australian small businesses a cost effective service with no compromise on quality.</div><br />
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