Cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode. Regular cashflow forecasts will help you make informed decisions.
Revenue, profit and your bottom line will all resume their importance when we’re back to “normal” (however that’s going to look), over the past eighteen months there have been times where just keeping things running has been the priority.
Regular cashflow forecasts will help you keep that in focus. Here’s why:
It can help to analyse costs in terms of cost of sale and overheads.
Cost of sale and overheads
Cost of sale (also known as Cost of Goods Sold or CoGS) is how much it costs you to make a sale. In a business which sells products, CoGS is based on the price paid for the product, plus any costs necessary to put the merchandise into inventory and make it ready for sale, including shipping and handling. You can even break it down to calculate the cost of sale of individual units.
Overheads are general business expenses. They can’t be tracked directly to sales. Overheads are what it costs you to open your doors (whether online or actual) every morning.
What’s your plan?
Every dollar you can pull back from your costs can go straight into cashflow. Whether your sales are boom or bust, you want to make sure that your costs aren't holding you back.
Contact your WDF Professional team member if you would like to discuss further how we can help you review your costs and systems to keep costs under control. Phone 02 6921 5444 or email firstname.lastname@example.org
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