Many businesses and people are cash strapped in January whether it be from customers not paying on time or Christmas spending in general.
Being the start of a new year, it’s a good idea to get organised, prioritise commitments and prepare a cash flow budget for the year ahead.
The budget will help you see how much income you need to cover expenses and loan payments and help to control spending patterns. It will also allow you identify any future cash shortages before they occur and to take preventative action. This may include additional borrowings or the disposal of assets.
Remember, if you are in business, the ATO now has the power to report tax debts to credit reporting agencies, negatively influencing the ability of that business to borrow.
Don’t get caught out in this new year being short in cash and having to incur additional costs or worse.
Get organised early, budget and manage your cash flow!
If you don’t know where or how to start, contact CrossCorp today and we will be happy to help!
