Manage Your Small Business Cash Flow With Financial Advisor In Perth

November 17, 2021   

Irrespective of the size of the business, the owner must have a professional bookkeeper or accountant who can provide them with valuable advice on the financial performance of their business and what necessary steps they should take to grow profits and save costs.

Even though many small business owners decide to manage the accounts themselves to reduce costs, it may not be practical. The reason is that they have to look after various business affairs, and thus there are chances of making big mistakes. That is why, if you plan to start a venture, you should first look for a qualified small business advisor. This blog discusses the importance of an advisor in managing the cash flow in a company.

What Is Business Cash Flow Management?

Business cash flow management can be defined as tracking the financial inflow and outflow of the business. It will help you understand how much money is left and how much you will need to clear dues like paying workers and suppliers. The better the cash flow management, the smoother your business’s progress.

What Elements Must You Take Into Account For Cash Flow Management?

For your company’s cash flow management, you will need to consider the following factors:

  • Income

Income resources will include salary, self-employment income, bonuses, or investment income sources.

  • Fixed Expenses

These expenses do not usually change from month to month and include mortgage, rent, loan payments, bills, salaries, and property leases.

  • Discretionary Income

This income refers to the non-essential spending, including travel, improvements made in the office, and entertainment.

  • Taxes

Every business owner has to file taxes at the end of the financial year, and they are one of the higher costs a business has to bear.

  • Savings

You will also need to consider monthly and annual savings.

What Are The Different Cash Flow Management Services Offered By Business Advisors?

When you hire a professional business financial advisor, they will provide your business with the following cash flow management services.

  • Periodic Business Performance Reporting

Your small business financial planner can review your business’s financial performance monthly or weekly and prepare a report. A regular update of the business progress will help you make further plans.

  • Target-Based Management Planning

Your business should have definite financial goals. Your business advisor can provide you with target-oriented cash flow management planning so that it becomes easy for you to take appropriate steps.

  • Budget Planning

One of the most vital services that an experienced business advisor will offer is preparing the budget. A business advisor has a clear picture of financial health and thus can provide the best advice on what to include in the budget.

  • Break-Even Analysis And Reports

In the break-even analysis, the total fixed expenses of production are calculated relative to the profit earned by each additional unit. After a detailed analysis, the business advisor prepares a report.

  • Cash Flow Projections And Planning

With their long-term experience, financial advisors can figure out how much money can come into or go out of your business. It will help you understand the financial strength of your business over a specific period.

  • General Management Accounting And Monitoring

Business advisors play a key role in identifying, analyzing, interpreting the financial information and sending the necessary information to the managers, which helps the managers in making key business decisions.

  • Cashbook Management

By looking at the cash books, they can learn when, how, and where the money is coming from.

  • Management Review Meetings

Last but not least, business advisors are also responsible for reviewing and evaluating the effectiveness and accuracy of the management system, thereby helping the business owners understand its suitability.

What Are The Benefits Of Hiring Business Plan Advisors In Cash Flow Management?

There are three key benefits business plan advisors offer when they take care of cash flow management.

  • Professionals Know Which Questions They Should Ask

If you are new to the business world, creating an effective plan for your business cash flow can be highly challenging. Cash flow is not as profit, and you may not figure out what is considered a negative or positive cash flow. As a business owner, you will also need to understand which business strategies will enhance cash flow in the long term or immediately. Above all, you will need to take care of a variety of responsibilities as a business owner. You will look after customer service, management, marketing, accounting, etc., which means mistakes will be inevitable if you decide to manage your cash flow on your own.

On the other hand, a professional financial planner knows the right questions to ask and develops a plan according to that. You may have overlooked several expenses, which they will help you to detect.

  • An Advisor Will Help You Look At A Bigger Picture

As an owner, you will have to look after your company’s daily operations and thus forget about the bigger picture. It may affect you in the long term. But, detailed cash flow planning will help you maintain your business finance. You will know what you should expect to earn and how much you can spend in a specific period and fix your goals accordingly.

You may think of a big investment, but it may not yield benefits if you do not plan properly. Here also, your business financial advisor can help you with the planning. They will also tell you when you should consider hiring a new employee or purchasing new equipment.

  • Advisors Provide An Objective Viewpoint

Like all things, business trends and regulations also change, and as a business person, you have to adapt to those changes. Accepting changes is essential for your business growth, and your business advisor can give you the best suggestion on what to do in an evolved situation. You may hesitate to create intimidating goals or cut expenses, but a financial planner will always help you understand the reality.


From avoiding a cash shortage to paying employees on time, effective cash flow management can help in many ways. That is why you should always go for the top-rated professional in this field. For the best small business financial advice, reach out to Business Advisory Perth.