Cashflow – OAKTREE Accounting

Keeping your tax and expenses in check when you are self-employed

News Article: July 24, 2019 by Oaktree Accounting

Contracting or freelancing requires you to wear a lot of hats. Relationship-building, keeping track of your time, marketing your skills and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits. Understand your deductions Before you start, it’s essential to … Continue reading “Keeping your tax and expenses in check when you are self-employed”

The seventh cause of poor cashflow – Sales levels are too low

News Article: July 10, 2019 by Oaktree Accounting

It might sound obvious, but it isn’t to many businesses. If current sales levels don’t support overheads and other cash demands on the business, then your overdraft will just keep increasing. This means that your business in its current state is not viable (unless you have ongoing access to new funds from investors or financiers). … Continue reading “The seventh cause of poor cashflow – Sales levels are too low”

The sixth cause of poor cashflow – Overheads are too high

News Article: July 3, 2019 by Oaktree Accounting

This isn’t typically a place where you will find a lot of wastage. Our experience is that business owners are very careful about managing their expenses, and the smaller the business is, the truer that statement is. Having said that, as a business grows, so do the layers of hierarchy. Management control can deteriorate, and … Continue reading “The sixth cause of poor cashflow – Overheads are too high”

The fifth cause of poor cashflow – Gross profit margins are too low

News Article: June 26, 2019 by Oaktree Accounting

Your gross profit margin is what is left from your total sales after variable costs are deducted. For example, if you are a retailer and your sales in a given period are $1,000,000 and the cost of the goods you sell in that period is $650,000, then your gross profit margin is $350,000, or 35%. … Continue reading “The fifth cause of poor cashflow – Gross profit margins are too low”

The fourth cause of poor cashflow – Your debt or capital structure

News Article: June 19, 2019 by Oaktree Accounting

Often a reduction in interest charges as well as significant cashflow improvements can be achieved with a regular review of existing debt. A good place to start is to list all bank loans, mortgages, finance company loans, hire purchases, credit card debts, and any other debts (don’t include amounts owed to suppliers in this list). … Continue reading “The fourth cause of poor cashflow – Your debt or capital structure”

The third cause of poor cashflow – Your stock turn

News Article: June 11, 2019 by Oaktree Accounting

Carrying stock for too long means full shelves but an empty bank account. Similarly, if you’re a service provider and are taking forever to bill for your services, then you’re carrying too much stock in the form of work in progress. Consider that work in progress as a form of virtual stock. You can calculate … Continue reading “The third cause of poor cashflow – Your stock turn”

The second cause of poor cashflow – Your accounts payable process

News Article: June 5, 2019 by Oaktree Accounting

The second cause of poor cashflow relates to when and how money is spent in your business, including your terms of trade with suppliers. Do you have spending budgets in place? It’s best practice to prepare an overall business budget every year, usually before the beginning of your new financial year. It’s also best practice … Continue reading “The second cause of poor cashflow – Your accounts payable process”

The first cause of poor cashflow – Your cash lockup

News Article: May 29, 2019 by Oaktree Accounting

There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. Your lockup equals the cash that isn’t in your bank account because it’s either in work in progress (you’ve done some work but you haven’t … Continue reading “The first cause of poor cashflow – Your cash lockup”

Cashflow freedom – The 7 causes of poor cashflow

News Article: May 21, 2019 by Oaktree Accounting

Cash is the life blood of any business. In fact, even profitable businesses can and do fail because of poor cashflow. What’s important is that you understand your key cashflow drivers. Improving cashflow is often all about changing your business processes. Processes such as how you order stock and pay for it, how you bill … Continue reading “Cashflow freedom – The 7 causes of poor cashflow”

Does your business need a mobile accounting app?

News Article: February 23, 2018 by dwaoaktree

As a small business owner, you probably spend a lot of time out of the office. So it makes sense to be able to keep your accounts in order while you’re on the move. Here’s how to do it – and save yourself time and money. Plus keep your evenings free for things like life. … Continue reading “Does your business need a mobile accounting app?”

Accounting Business improvement Business systems Cashflow Tax

Keeping your tax and expenses in check when you are self-employed

The seventh cause of poor cashflow – Sales levels are too low

The sixth cause of poor cashflow – Overheads are too high

The fifth cause of poor cashflow – Gross profit margins are too low

The fourth cause of poor cashflow – Your debt or capital structure

The third cause of poor cashflow – Your stock turn

The second cause of poor cashflow – Your accounts payable process

The first cause of poor cashflow – Your cash lockup

Cashflow freedom – The 7 causes of poor cashflow

Does your business need a mobile accounting app?