Why is cashflow important…?
What is cashflow? Read our article here to understand the wonders of managing your cashflow. In summary, managing cashflow is one of the most essential parts of any business. In fact, failure to adequately manage cashflow and finances is a lead indicator of why Sole Trading and Micro businesses become insolvent. The Australian Bureau of Statistics (ABS) estimates that 40% of Australian Businesses fail in their first five years of trading due to failures in financial management (namely cashflow)
The below oxygen calculator (to make sure your cashflow is taking healthy breaths) helps work out your available cash flows to make sure your business stays afloat. The metrics within this report should be tracked on an ongoing basis (usually recommended to be updated every month).
Please note that this calculator is for guidance only, Sole always encourages the use of advisors to make financial decisions as your personal circumstances may differ.