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

Taxation solutions will ensure a consistent progress of your business
Published by Tommy Jackson on August 23rd 2012 | Insurance
Since the business environment today is eventually gathering some pace, therefore, to survive in thi...
 
Xero Accountant: This software will ensure your small and medium sized business becomes a large scale one in no time
Published by Tommy Jackson on June 19th 2012 | Insurance
This software is specially designed to provide the real time solutions to the small as well as mediu...
 
Make business simplified with Bookkeeping Services
Published by Nelson on April 25th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Get compensation by business interruption insurance for disastrous circumstances
Published by Andrew Edwards on January 2nd 2012 | Insurance
If you are running a business successfully and happy earnings gained on regular basis...
 
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...
 
Getting the most out of your unsecured business loans
Published by Mathias Scott on June 14th 2012 | Finance
An unsecured loan is one that you get without having to put forth a collateral. In this form of lend...
 
Unsecured business loans are funds with fast approval
Published by Macrobusinesscapital@gmail.com on February 3rd 2012 | Finance
There may be several reasons for someone to look for additional or basic finance for his or her firm...
 
Selling a business – Important steps
Published by Herry Smith on March 20th 2012 | Insurance
Selling a business provide you the personal satisfaction that your will continue after you. By selli...
 
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...
 
Obtain the exact type of coverage through business insurance plan
Published by Andrew Edwards on April 14th 2012 | Insurance
As a business owner it is your responsibility to look into the plans suitable for your company...
 
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...
 
Look at us and buy affordable business insurance
Published by Andrew Edwards on March 14th 2012 | Insurance
While making choices in for business insurance you should not avoid us...
 
Making business in Turku area
Published by Jinny Rios on July 18th 2012 | Finance
The shipbuilding and food industries are featured on the area, but the recent newcomers it-technolog...
 
Hire Brisbane Accountants for the success of business
Published by Tommy Jackson on June 26th 2012 | Insurance
Running business firms and start-ups is not an easy task, you will have to involve yourself in the e...
 
How to get a small or new business grant
Published by Church Henry on June 16th 2012 | Finance
Special grants are given by the authorities for starting up new and small businesses that most peopl...
 
Why a business advance has more advantages
Published by Mathias Scott on April 2nd 2012 | Finance
For those people running small businesses in the current economy, they all know the trouble associat...
 
Appoint tremendously trained accountants with Bookkeeping Services
Published by Nelson on February 3rd 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
How to find inexpensive business insurance rates for business
Published by Andrew Edwards on November 30th 2011 | Insurance
Insurance is something associated with every business type...
 
Maintain data of your business with beneficial Bookkeeping
Published by Nelson on March 19th 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
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 ...