Cashflow surprises don’t hit you out of the blue, they creep up while you’re busy keeping your business afloat. One day you’re fine, the next you’re staring at your balance and thinking, “Hang on, where’d it all go?”
At Tall Books, we’ve seen it plenty of times. Cashflow problems rarely appear overnight. They grow slowly, hidden behind the daily grind. The key is spotting those early hints before they turn into trouble. That way, you stay ahead and keep your cash steady.
Let’s talk about how to predict cashflow surprises before they happen, the Aussie way.
Cashflow Problems Don’t Just “Happen”
Running a business in Australia has its highs and lows, and sometimes, your cashflow feels like it’s on a theme park ride. But those sudden drops? They’re never random. They come from the little things that pile up, like:
- Clients dragging their feet on payments
- Sneaky spending increases (yep, those monthly subscriptions)
- Slow seasons that catch you off guard
- Overheads creeping past your income
Next thing you know, you’re juggling bills and wondering where the cash disappeared.
Here’s the truth: if you’re not tracking it, you can’t control it.
Early Warning Signs of a Cashflow Crunch
You don’t need to be a finance expert to notice when cashflow’s tightening. You just need to keep an eye on the right clues. A few red flags to watch out for:
- Using your overdraft too often: When it starts feeling like a lifeline, you’ve got a problem.
- Late-paying clients: A couple of late invoices might not look bad, but they add up quick.
- Bills stacking up: If you’re pushing supplier payments back, that’s a clear warning sign.
- Counting on future income: Banking on next month’s big sale to fix today’s shortfall? Risky move.
Cashflow trouble doesn’t crash in overnight, the hints are there. You just have to notice them.
Cashflow Forecasting: Your Business Weather Report
Think of forecasting as your business’s weather app. It shows you what’s coming: sunshine, drizzle, or a storm, so you can prepare instead of panic.
When you’ve got a forecast in place, you can:
- Plan for quiet months before they hit
- Predict late payments and manage around them
- Set aside funds for repairs or tax time
- Make confident calls about growth
You don’t need fancy software or complex formulas. You just need a clear view of what’s ahead.
And if the thought of spreadsheets makes your head ache, that’s fine – Tall Books can handle it for you. We’ll take care of the numbers while you focus on the business you built.
How to Build a No-Fuss Cashflow Forecast
A forecast doesn’t need to be complicated. Here’s a down-to-earth way to start:
- Gather your numbers: Past sales, invoices, and expenses, include everything, even the small stuff.
- Estimate income: Be honest, not overly hopeful.
- List all expenses: Rent, wages, insurance, tax, every regular cost.
- Keep it fresh: Check it weekly or monthly to catch changes early.
Pro tip: Keep a small buffer, your “rainy day” stash. Things never go perfectly, and that’s alright.
Common Forecasting Slip-Ups
Even experienced business owners fall for these:
- Being too optimistic about sales
- Forgetting tax or super payments
- Ignoring seasonal slowdowns
- Overlooking small costs that chip away at profit
Staying grounded and realistic makes your forecast something you can rely on, not just glance at.
Stay Proactive, Not Reactive
In business, reacting too late costs you. Staying proactive means you see the squeeze coming before it tightens.
That’s where Tall Books steps in. Our bookkeeping team helps local businesses keep things balanced and stress-free. We’ll help you build a solid forecast so your choices come from confidence, not guesswork.
If you’re done with surprise cashflow headaches, get in touch with us. We’ll help you take control of your money and plan ahead without the stress.