Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Financing is not about taking loans, but keeping your cash flow positive with minimum expenditure

By Tommy Jackson Subscribe to RSS | July 17th 2012 | Views:
loading
 
  



Cash flow requirement for the business can be a big hurdle for the long-term growth. They keep troubling a business firm. Like at times, sales go up and then they go down, sometimes margins are good and then they fall out. Cash flow can easily swing back and forth in such circumstances.

Therefore, to ensure a little bit of stability you need to accurately analyse your month’s cash flows and costs. It doesn’t matter what has happened during the years, in any way you need to be at the top of the pile of the funds that you’ll be requiring for the scheduling and covering the recurring operation costs which will be there irrespective of if you have made sufficient sales or not. One has to do this process for 12 months cycle to ensure they make better decisions in terms of cash flow.

Next step is to determine the amount of fund available in cash and how much cash can be invested into the business and what other sources of cash in place are. Then you need to plan your cash flow in such a way that the fixed costs, accounts receivable and existing accounts payable can be realistically studied and noted down for the upcoming weeks and months. Besides, if your cash is always tight, then you need to do your cash flow study on a weekly basis. Because you’ll find too much of variations over a course of month to do it on a monthly basis.

After assessing these points, next you need to finance your cash flow. However, process of financing cash flows is unique in every case as it depends on the industry, sector, model, business, stage your business is in, your business’ size, your available resources etc. Every business first needs to assess the resources of financing the cash flow. They need to assess owner’s investment, trade financing, receivable discounts on the early payments, government remittances, deposits on sale, third party financing etc. Once you’ll assess all these options, then you’ll have a thorough knowledge as well as understanding of all the options available to you for financing your cash flow depends on your certain business model. Therefore, at this moment you’ll be in a position to entertain future sale opportunities that will fit into your cash flow.

However, one must understand that financing your cash flows is not about taking loans from someone or from bank. It is the process of keeping your cash flow positive at the minimum cost. Besides, one must always market and sell what they can turn into cash flow, as the marketers will assess the ROI of your marketing initiative. However, if you can’t cash flow your business to complete the pending sales and collect the proceeds then there will be no ROI to be measured. Therefore, if your business features uneven sales and margins, then you can only enter the transactions that you can finance.

Therefore, in order to maximize your marketing effort while also reducing the unpredictability of annual sales cycle, you need to properly access your options before financing your cash flows. This will ensure a long term growth and stability for your business.

Tommy Jackson - About Author:
Prasanth is an author for Specialised Business Solutions(Sbs.net.au) site, Best accounting firm based in Brisbane. He has been writing articles on Financing and Brisbane Accountants for accounting firm.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/financing-is-not-about-taking-loans-but-keeping-your-cash-flow-positive-with-minimum-expenditure.htm

Related Insurance Articles Subscribe to RSS

Bookkeeping services...Utilizing tricks for development and growth of business
Published by Nelson on January 27th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
 
Use Risk Management to minimize the chances of crippling down your business
Published by Tommy Jackson on July 17th 2012 | Insurance
One of the efficient ways of regulating the risk is by hiring the experts in this field, the risk ma...
 
Protect your business with Public Liability Insurance
Published by BakerThomas on January 4th 2012 | Insurance
Rate of corruption and illegal activities are increasing day by day. People resort to any means to g...
 
Manage your business effortlessly with commercial insurance
Published by Andrew Edwards on February 16th 2012 | Insurance
If you are running a business either it is large or small, then you will understand the importance...
 
Hold unexpected situations with ease, obtain business interruption insurance
Published by Andrew Edwards on February 20th 2012 | Insurance
Fix your business issues quite generously as it is quite important to keep a hold on unexpected situ...
 
Effects of higher business insurance rates on financial system
Published by Andrew Edwards on February 2nd 2012 | Insurance
We all necessarily buy business insurance plan for the company...
 
High quality accounting services to make your business touch new heights of success
Published by Tommy Jackson on June 13th 2012 | Insurance
Finding accountants for your business is one of the most important decisions you will ever take whil...
 
Property Tax Accountant Brisbane will ensure your business last the competitive race
Published by Tommy Jackson on June 13th 2012 | Insurance
These days the business environment around the world is competitive, and therefore, one needs to mak...
 
Started your business, now hire Business Accountants to make it work
Published by Tommy Jackson on June 13th 2012 | Insurance
Once you will open a business firm then the first task will be to plan the financial aspect of your ...
 
Commercial insurance quotes: preliminary walk towards sheltered business
Published by Andrew Edwards on January 18th 2012 | Insurance
The term quotes meant a lot to us, quotes are thoughts shared by legendary people...
 
If you accept Visa and MasterCard you can get Bad credit small business loans
Published by Joseph Richard on April 4th 2012 | Finance
Despite it being a popular means of finance, there are several business operators who are unsure of ...
 
Plan your business insurance cover to acquire solid defense
Published by Andrew Edwards on March 19th 2012 | Insurance
In addition to expenses made on maintenance of the workings, we also need proper planning in terms o...
 
Business Accounting is a must for your business to succeed
Published by Tommy Jackson on July 17th 2012 | Insurance
Once you start with your own business firm or a company, you need to devote your time in various are...
 
Why a business cash advance has more benefits than small business loans
Published by Joseph Richard on April 4th 2012 | Finance
Every small business knows how difficult it is for one to get a small business loan these days. With...
 
What you need to know about business financing?
Published by Matthew Anthony on February 23rd 2012 | Finance
To get finance for your new business can give you a tough time. But business financing Las Vegas fa...
 
Bookkeeping performs an extremely important role in every business
Published by Nelson on February 29th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Tips for applying start up business funding
Published by Macrobusinesscapital@gmail.com on November 25th 2011 | Finance
For all business owners how to borrow more effectively is quite a lesson to understand business borr...
 
Find out why product liability insurance is necessary for your business
Published by Andrew Edwards on January 17th 2012 | Insurance
Before leaving it aside think on the complex situations faced by company...
 
Insurance wholesalers are the new protectors for business
Published by Carolmoore on March 7th 2012 | Insurance
The countries have their respective and diverse wholesale stores which are retail and have all the p...