Small business owners are seeking more cashflow advice than any other business assistance, according to an American Express study.
39 percent of small business owners said managing cashflow is the most stressful aspect of running their business, and a key area they would have liked more advice during the business’ early stages.
According to American Express Head of Small Business Jason Fryer, “setting up one’s own business is a dream easily realised for many, but badly-managed cash flow can quickly turn into a nightmare.”
To keep cashflow under control, Fryer suggests the following tips:
- Compile a cashflow forecast
- Keep original receipts and reconcile against bank and credit card statements on a regular basis
- Keep personal and business expenses separate
- Do not extend credit if you do not have to and be vigilant with debtor management
- Speak to an accountant to identify a specific strategy for your business
Fryer believes a company’s sustainability is dependent on “having a cash flow strategy in place and closely monitoring the flow of money in and out of the business is essential.
In addition to cash flow advice, results indicated that accounting support, budgeting and mentoring were also areas that small business owners would pass advice on to those contemplating self-employment.
“Setting up your own is full of challenges and it’s impossible to predict every eventuality. However, careful planning and seeking the advice of others who have been in a similar situation will help ensure it is a highly rewarding venture,” Fryer added.