Skip to content

What's New

arrowAsset 1@3x

Business Planning Workshop Register now In this action-packed 2…

Read More
arrowAsset 1@3x

Register Now Preview modal- Financial markets are moving and…

Read More
arrowAsset 1@3x

Article by Matt Sherwood, Head of Investment Strategy, Multi...

Read More

Upcoming Events

Business Planning Workshop

Business Planning Workshop: Find more cash, more profit and more time in your business

Wed, 28 February 2024

SMSF Seminar - New rules, new strategies. What do I do?

Self-Managed Superannuation Seminar – New rules, new strategies. What do I do?

Wed, 27 March 2024

Sign up to b-Mail!

Want to hear the latest news as it happens? Simply fill out the form below and we'll send you regular updates so you can stay in the loop.

Accounting: Cash stress despite healthy profit Posted on February 14, 2020

Stressed man

Digital credit agency, CreditorWatch has tipped 2020 to be a tough year for SME’s. All too often, smart and profitable businesses find themselves short of cash because of the debtors and creditors they rely on. It takes one payment default to set things off course. Prevention is always the best cure, and communication is key.

It’s a debtor/creditor race. The money going out needs to be at pace with the money coming in.

There are ways to refine this process, and it comes down to planning, systems and communication.

A warning – The principles are simple, the execution is complex. And there are often some tough leadership decisions required along the way, but if running a sustainable business is your goal, you’ve just got to do it.


Does your business have a budget and an accurate and reliable forecast? Can you see by how much you need to grow and where you can generate that growth from? Leads generation is an important part of your planning – if you stand still, others will overtake.


There are digital systems that help you to retrospectively and pre-emptively analyse what has come in, what is due to come in, and the same for what is going out. With a click of a button you can monitor trouble spots and progress. This enables you to put the plans in place and be proactive about issues, rather than re-active. Stress can lead to poor decision-making. Remember, you can’t change what you haven’t measured.

It is also really important to have a debtor management system. This could be a combination of digital means (apps like Apxium or Debtor Daddy) and manual means such as a team resource who monitors debtors and follows them up. All too often, debtors will wait until it is necessary to pay. Make it necessary.


As soon as you identify a trouble-area such as negative cashflow or payment dates, gather expert advice around your options and your stakeholders. Plan your communication before you execute it. Stick to the facts and always be honest, professional and polite.

Quick survey: The profitable business with no cash

  • This field is for validation purposes and should be left unchanged.
ac-logo-whiteArtboard 1@3x

Discover the difference that the right advice can make

Get in touch with our team today and learn how you and your business can grow to the next level. 

be better off.

talk to us Discover the difference that the right advice can make

Get in touch with our team today and learn how you and your business can grow to the next level. From structuring to sustainability, we'll help you reach your financial goals and live the lifestyle you deserve.

be better off.