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Are you concerned about CASH FLOW?


Improve your cash flow!

HOW TO MAXIMISE YOUR CASH FLOW NOW!!!


Manage the financial resources of your business:

v Ask for a larger deposit on all bookings.

v Retain funds as long as you can before paying suppliers.

v Get your customers on Credit Card or Full Payment upon booking.

v Pay your monthly creditors later than usual.

v Use your company credit card to extend your time to pay suppliers.

v Ask your suppliers for extended credit terms – payment over 3 months or longer.

v Change your GST to payments basis and 6 months if possible.

v Put aside 20% - 30% of your receipts to pay GST and Tax.

v Check your tax calculations and put off payment until you have funds or pay your tax with your GST.

v Fund your tax through your accountant.

v Put surplus funds in a high interest account or on deposit.

v Ask staff to work extra unpaid now and take time off later.


WHEN BUSINESS IS QUIET MINIMISE YOUR EXPENSES!!!

Manage your business expenses better over the low season:

v Decide who can afford to take unpaid leave.

v Reduce the number of paid days per week.

v Pay your telephone bill on a Credit Card.

v Reduce your expenses both business and personal to the minimum.

v When business is quiet get staff to take their holidays – this maximizes productivity when they return.

v Get any projects completed over this time when staff is not so busy.


GET FUNDING IN PLACE EARLY FOR THE LOW SEASON

Manage your funding:

v Request a temporary overdraft well before you need it.

v Obtain a loan using the equity in your property.

v Obtain a loan using the equity in your Insurance policy.

v Obtain a line of credit for emergencies well before your may require the funds.

v Flexirent any Computer purchases.

v Extend the credit limit on your Credit Cards.



WHAT LONGER TERM STRUCTURAL CHANGES CAN YOU MAKE TO IMPROVE CASH FLOW?

Long term solutions

v Match your long term assets with long term debt so you have the cash to pay your bills.

v Ensure that you have good systems in place to capture and bill every booking.

v Bill your service as soon as it is delivered.

v Develop your web presence to get customers direct and improve your margins.

v Prepare accounting reports monthly to keep a close check on your business.

v Prepare a Budget / Cash Flow so you know how much to put aside for the low season.

v If you are a tour operator – open a Trust / Travel Bank account – to enable better management of funds. Only take out what is yours.

Tel. 09 524 6178    •    Fax. 09 524 6179

hello@travelaccounting.co.nz

Suite G3, Ground Floor, 27 Gillies Avenue, Newmarket, Auckland

PO Box 109515, Newmarket, Auckland 1149

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