Volatile Times – The Ups and Downs of Business

Eugenie Jones Odds & Ends

We often have clients contact us when times get tough. Sales have taken a dive and they aren’t prepared to weather the storm. They often don’t have sufficient working capital in place to cover all of their outgoings during the down turn and are out of options. These businesses are generally profitable but because of this they don’t prepare well …

Why you need to know your cash daily

Hamish Mexted Odds & Ends

Knowing your numbers at all times isn’t just to ensure that you have enough cash to pay your bills. This information ensures that you are keeping track of your numbers and understand what is important to keep the business running smoothly. It shows that numbers matter and are vital to the success of the business. It gives you an insight …

Cashflow

Hamish Mexted Odds & Ends

Things in Wellington feel good, and it seems like there are a lot of opportunities around. Strong cashflow could be the difference between capturing or missing out on an opportunity.    The problem If a business has tight cashflow then it’s hard to get banks on-board when an opportunity presents itself. The technical diagnosis for tight cashflow is where businesses …

Getting your Cycle On

Hamish Mexted Odds & Ends

  A common question we are faced with when working with business owners always seems to be, “We are profitable, but we don’t have any cash. What’s happening?” The answer is normally a poor Working Capital Cycle. But before we get into that, let’s look at the below example. We have completed both jobs and they have both been invoiced. …

Lending Structure and Appropriateness

Hamish Mexted Odds & Ends

The structure of your lending can be a very important thing – it can determine how much the bank is willing to lend you and also have an impact on the accounting and tax treatment of potential interest deductions. The common folklore you will hear during conversations at the pub is that interest you pay on lending in your ‘business’ …