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Cash flow is like a canary in a coal mine

  • Tuesday, February 28, 2017
  • Anthony Berkman

We all know that managing cash flow is important for a small business. It’s also important to understand that cash flow problems can be the result of major issues in your business that require attention. Like a canary in a coal mine, a cash flow problem may be telling you that something is wrong.

If you are facing cash flow concerns in your business, consider it a warning signal that there are overarching issues you need to address. For example, likely causes for cash flow problems include:

  1. Declining Gross Profit Margins
  2. Disproportionate Capital expenditure
  3. Stock Management Issues

The risk of not addressing the underlying issues which affect your cash flow can have wider implications for the long term performance and profitability of your business.  While your specialist skills and expertise are related to your field of business, it’s important to acknowledge if you really have the business management skills to identify and mitigate problems which may be affecting your business.

At Berkmans, our expertise is focused specifically on helping you to run your business more effectively. Often you don’t know what you don’t know, and we can help you gain insight into your business by helping you establish mechanisms and systems to generate good financial information which can be used to make more informed business decisions.

The key is to play to your strengths. Savvy business owners focus on their strengths and technical abilities and engage professionals to assist in areas where they have less knowledge, less ability or limited time. In my experience, success comes to those business owners who acknowledge that they need help and bring in the experts.

Helping business owners is our speciality. With over 40 years’ business management and accounting experience working with a wonderfully diverse group of business owners, I have plenty to share. It would be my pleasure to assist you to better understand your cash flow in order to achieve the business outcomes you require.

I invite you to contact me on 02 4351 2622 or email

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