Experts suggest that business owners must try to master the basics of handling finances – starting with the issuance of invoices at the proper times, transparency of transactions and also by taking immediate action in case of non-payment by a debtor.
Australia (PRWEB) July 13, 2012
Members Alliance Australia, a leading finance consulting company, has exposed the different strategies and procedures of the top entrepreneurs in the country, for the purpose of educating people about the importance of maintaining efficient and effective cash flow.
This announcement from Members Alliance stems from reports showing that 80% of Australian businesses actually fail because of poor cash flow management. In fact, a Dun & Bradstreet study undertaken in February 2011 showed that more than 10,000 firms in Australia had shut down in 2010, primarily because of poor cash handling.
According to analysts, one of the main considerations that retailers and entrepreneurs alike must seriously look into is debt collection - suggesting that delayed payments will take a toll on a business, whatever it may be.
Industry observers are also saying that though the Australian economy is showing signs of strength and resilience compared to other countries - smaller businesses have been encountering financial problems, primarily because of late payments and mishandling of finances. With the rot setting in, small business owners are now calling out for solutions to solve their financial burdens.
In order to resolve these problems, established entrepreneurs have suggested hiring an accountant or financial consultant to ensure that debts are properly paid on time, and to increase the guarantee that cash flow is managed properly.
Additionally, many believe that discipline will also play an important role in business or even in managing personal finances. Experts suggest that business owners must try to master the basics of handling finances – starting with the issuance of invoices at the proper times, transparency of transactions and also by taking immediate action in case of non-payment by a debtor. For most businesses, these are some of the many ways where they can ultimately protect their interests and make more money as the business grows.
On the other hand, successful entrepreneurs also suggest doing some credit investigation when new customers and clients come on board. Through this, they will be able to know if the prospective client will actually be able to pay up. If not, then it would be best to deal with the client on cash-basis transactions only, and in full, to avoid any future cash flow shortfalls.
Lastly, and more importantly, industry experts and analysts advise that, whether for business or personal purposes, one should try to employ the services of finance advisers and consultants to help them manage their finances and to help them understand things more clearly.
In effect, they are saying that for those who are having some financial problems, there is the need to consult finance experts to protect themselves and their assets from any untoward consequences.
Members Alliance is a reputable finance specialist that provides consultations to clients, on a business or personal level, ranging from debt conversion, debt reduction, wealth creation, tax effectiveness, home loans, property investment options, financial planning, risk management, cash flow matters and other finance issues.
If you wish to talk to Members Alliance regarding your business or personal finances, do not hesitate to call them at 1300 365 731 or visit their business website at http://www.membersalliance.com.au/about-us.