In Part 1 we looked at the scary, but meaningless, statistics around cashflow and business failure and answered the question how much cash is enough cash. In Part 2 we are going to take a more detailed look at the specific actions that result in cashflow shortfalls with businesses and what actions you can take to avoid becoming part of this atrocious statistic.

This year, I decided I wanted to spread my wings and enter a few business awards. It is not normally something I do, being an accountant, I am used to being in the background. I entered the Women in Finance 2020 and won Accountant of the Year.

One of the things we love to do at Accounting Heart is to champion financial confidence and one of the ways we do this is by having quarterly catchups to talk all things numbers…profit & loss, balance sheet, break-even, budgets, cashflow, long term forecasts, tax etc. Sounds like fun, I know ?. In recently preparing for one of these catchups I opened up our client’s Xero file to find a very different set of numbers to what I was expecting, and the colour drained from my face.