Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Managing cashflow key to successful holiday season

Managing cashflow key to successful holiday season


Wednesday, December 15, 2010

While planning ahead to cope with the cashflow headache of the holiday season is not something new, it is surprising how few particularly small and medium sized businesses do not do it, and find themselves in financial strife in the New Year.

Staples Rodway Hamilton Senior Tax Manager Greg Brewerton says there are a few simple things people can do to make sure their businesses are in good shape when the holiday season is over.

“Businesses might close down for a few weeks but the expenses still have to be paid. Cashflow management is about making sure there’s enough money to pay the bills even if you haven’t been paid yet,” he says.

Mr Brewerton’s top tip is to make sure the books do not get neglected, and make sure you are getting regular, up-to-date financial reports. By doing this businesses will be in a better position to manage cashflow, with the added bonus of a better understanding of what makes it profitable.

“Many small business owners don’t like book keeping because they see it as non productive time. But if you don’t like doing the books, get someone else to in a format that you understand so you can take an interest in what they show.”

“Planning ahead will also allow you to be aware in advance whether there is going to be enough money in the bank to pay your bills. By considering factors such as sales seasonality, tax bills and capital expenditure ahead of time, funds can be put aside so you can budget more easily to meet your commitments,” says Mr Brewerton.

If businesses do find themselves in cashflow trouble, there are several things they can do:

• Tighten your debt collection efforts to bring cash in more quickly
• Avoid drawing funds for private use during difficult periods
• Consider a sale of slow-moving stock to generate funds quickly
• If you’re going to seek help from the bank, do it early before it becomes a crisis and to give yourself more options
• Offer creditors a payment plan to show your good faith.

Finally, if a lack of cash or poor profitability are ongoing issues, Mr Brewerton suggests getting professional advice.

“Particularly in the tough times we’ve seen this year, when revenue is down it’s tempting for businesses to focus on production or just do what they need to do to keep it going, but having a business plan and forecasting ahead will ensure long term viability,” he says.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: