Encounter the Difference

NZ CA is an association of independent Chartered Accounting firms, proactively working together for the benefit of our clients.

Cash Flow from juggling act to peace of mind

Published: 23rd July 2020

Published in: TrialBalance issue 71

Any business owner will tell you that managing cash flow can be a juggling act. It’s one of the most common problems you’ll lose sleep over. If you can gain control of your business’s cash flow you’ll reduce stress and improve your peace of mind.

5 Ways You Can Improve Your Cash Flow Management:

1. Know What the Main Triggers Are
Identifying the main triggers in your business will make a significant difference. For example –
Invoicing your clients on time and sticking to your payment terms is vital. The more your customer owes you the harder it becomes to collect.
Study your outgoing payments and note when they occur. This will help ensure you maintain a strong cash flow. Some key areas to consider are:
● Payroll for staff
● Rent
● Finance including loans
● Tax liabilities
● Supplier payment terms and conditions
It’s important to be very clear about your ongoing business costs and the timing of these. You can then plan their payment in advance.

2. Be Aware of Other Costs
Being aware of every cost to the business will help solve cash flow issues. If you know the impact of these you’ll get a better understanding of cash flow management.
Over the course of a month or a quarter this kind of awareness can make a big difference.

3. Keep Your Suppliers in Check
It pays to review your suppliers’ services. Are they still relevant for your business? If they are, you should review their services to make sure they’re up to scratch. This can be useful in managing any increasing costs from your suppliers. At the same time, ensure you understand their current payment terms.

4. Other Things to Prepare For
● Busy trading periods when staff wages increase. This is especially so if you bring in casual workers.
● Upgrading or replacing equipment. This may result in a cash flow blip and/or increased finance costs.
● Bad debts due to customers going out of business. Avoid this by collecting payments and minimising the amount every customer owes you.

5. Know Your Cash Flow Position Weeks In Advance
Business owners should run a cash flow spreadsheet up to 7 weeks in advance. This can be as simple as an excel spreadsheet that takes minimal time to administer. The trick is to have a cash flow forecast that is visible, and one that you check often (daily if necessary). In this way you can see any danger spots and, with enough warning, eliminate them before they occur.

This alone, will make a massive difference in managing your cash flow. Stress levels too, will be much lower. You be able to take the panicked juggling act out of the picture altogether.

  • Auckland
  • Bay of Plenty
  • Canterbury
  • East Coast
  • Hawke's Bay
  • Manawatu/Wanganui
  • Nelson/Marlborough
  • Northland
  • Otago
  • Southland
  • Taranaki
  • Waikato
  • Wairarapa
  • Wellington
  • West Coast

McDonald Vague Limited

Our experience in business turnaround, restructuring and insolvency has helped many New Zealand companies through periods of growth and change, as well as difficult times.

We advise underperforming businesses how to protect their financial future and find stability through a range of turnaround services including independent accounting reviews, raising finance and divestment.

Region: Auckland

Phone: 0800 30 30 34

Focus Chartered Accountants

At Focus we believe that the Chartered Accountant of today is judged by the way in which they work with their clients to provide creative and creditable solutions to their business needs.  To do this successfully they must be a proactive member of their clients' business teams, and be prepared to dissolve the boundaries and limitations of traditional accounting work and thinking.

Region: Bay of Plenty

Phone: 0800 362 872

Martin Wakefield

At Martin Wakefield we pride ourselves in being friendly, accessible accounting specialists who make it our business to make your business more successful.

By helping our clients to succeed, we are able to continue to grow our client base and expertise in the many areas in which we excel.

Region: Canterbury

Phone: 03 687 7122

No firms in East Coast

BM Accounting Ltd

BM recognise that different people need different things from their accountants depending on where they are in the business life cycle. Whether you are just starting out, are established in business or ready to retire we have the knowledge and expertise to support you. Similarly our dealings with a wide variety of industries and professionals help us to understand that everyone's requirements are unique.

Region: Hawke's Bay

Phone: 06 876 7159

Naylor Lawrence

At NLA we believe that a good accountant will ensure your compliance and tax is completed to standard and on time. However, a great accountant will take the time to understand your vision for growing your business and help you plan the journey to achieve it. With some checks along the way!

Our team has the expertise to assist your business, whether it’s big or small, just starting out, or needing some fine tuning. We don’t just offer services – we offer personalised solutions for each of our clients.

Region: Manawatu/Wanganui

Phone: 06 357 0640

Wallace Diack Chartered Accountants Ltd

With over 50 years combined experience in New Zealand, Wallace Diack is committed to providing a comprehensive range of practical accounting services for today's economic environment that help you realise your goals.

We appreciate that selecting a firm to entrust with your accounting requirements is an important decision, intensified by rapid economic changes, increases in competitive pressures, and resource availability. With our benchmarking, cash flow forecasting, and other tools, Wallace Diack is well placed to help you make an informed decision.

Region: Nelson/Marlborough

Phone: (03) 578 7389

Whitelaw Weber Limited

Whitelaw Weber is the largest business advisory and accountancy firm in New Zealand's Far North. They have had the pleasure of working with hundreds of businesses and families for more years than they care to remember.

They have a large team of accountants and business specialists based in offices in Kaikohe, Kaitaia and Kerikeri. Their expert hubs consist of the following;

  • Technology, systems and processes
  • Business consultancy and marketing
  • Financial and investment planning
  • Compliance and administration

Region: Northland

Phone: (09) 407 7117

Flannery Tait

Flannery Tait Chartered Accountants is based in Alexandra with a satellite office in Cromwell.  The firm offers a variety of accounting services to clients who are located mostly in the Central Otago area.

Our Directors and staff have a great deal of experience built up over the past 30+ years and take pride in providing clients with a high-quality service at a competitive price. We are also actively involved in the local community and support many not for profit and
educational organisations.

Region: Otago

Phone: 03 448 8060

McIntyre Dick Limited

McIntyre Dick is a vibrant, driven, and people focused firm of Business Advisors and Chartered Accountants leading the industry in Southland, New Zealand. They’re dedicated to delivering exceptional service and strive to put time, mind and money back in their clients’ hands.

Region: Southland

Phone: 03 211 0801

Harris Taylor Limited

The Accountancy world is constantly changing and highly competitive. At Harris Taylor their challenge is to stay ahead of the competition by providing the best possible service, whilst ensuring that client satisfaction remains our primary motivation and ultimate goal.

Region: Taranaki

Phone: 06 278 5058

gfa Chartered Accountants

gfa Chartered Accountants Ltd was formed on 1 April 2018 by Merv Gyde and Lance Fielder, two experienced Chartered Accountants based in Te Awamutu.

The name is an acronym for Guidance, Friendship and Acumen and reflects Merv and Lance and their teams approach to working with our clients.

It is based on the philosophical concept of Friends first, business later and forms the basis of the relationship between advisor and client, that in turn then allows the advisor to better understand the client's position and work with them to achieve their goals.

Region: Waikato

Phone: 07 872 6444

Southey Sayer

Offering a full range of accounting and business development services, tailored to meet the needs of each individual client. The wide range of expertise and experience within the firm is shared amongst the partners and their teams for their clients benefit. Services and products offered are fully flexible there will be no expectation to conform to a certain product or pricing structure.

Region: Wairarapa

Phone: (06) 370 0811

GCOL Chartered Accountants,

GCOL Chartered Accountants, can trace its history back to 1966. Over the years it has undergone several name changes and based itself at several locations around the Hutt Valley. With all the changes over the space of forty plus years we have always retained the fundamental principles of honesty and integrity.

Region: Wellington

Phone: 04 939 1975

Marshall & Heaphy Limited

Central to the culture of the team that has been developed over their history, is the belief that successful and sustainable businesses are the backbone for the West Coast community. Great businesses create jobs, keeping people and family together on the Coast, building a sustainable community.

Region: West Coast

Phone: 03 768 7186