1. Inability to pay your debts:
Think about ways you could increase cash flow, such as: preparing weekly cash flow forecasts to understand what has to be paid, having solid procedures in place for collecting outstanding debts from customers, talking to your bank about putting a temporary loan in place
2. Poor profitability:
Start to monitor profit, identify issues regularly and consider areas such as: gross and net margins, sales, review the productivity of your staff.
3. Inadequate financial records:
It’s critical to keep your records up-to-date and monitor them regularly. Make sure all your invoices and payments are entered weekly into your financial system.
4. Continually replacing staff:
Think about ways to reduce staff turnover.
Get your business back on track: finding a good bookkeeper or accountant and ask them what key financial areas should be reviewed regularly. Contact us: www.ysaccounting.com.au