Get ahead of your cash flow challenges
Even profitable farms can find themselves experiencing cash flow challenges, particularly given some of the external influences currently in place, such as dry conditions, increased input costs and interest rate rises.
Your cash flow can be your early warning system. With the end of the first quarter of the financial year now passed, now is a good time to reflect on your current plans and budgets or start the budgeting process.
Preparing and regularly monitoring your cash flow budget is the key to managing any cash flow concerns and improving results. Budgets help identify potential financial challenges, aid in tracking performance, improving decision-making, and securing loans or investments. In my experience, it is rare that a farming business hasn’t benefited from having a budget in place.
Cash flow budgets don’t need to be complex, keep it simple and avoid complex spreadsheets if that’s not your thing. If you need help or a second opinion to tweak or review your budget, or not sure where to start, reach out to your local Rural Financial Counsellor for support. Or learn more in our Get Ahead Of It Webinar, where I talk about ‘What your cash flow is trying to tell you‘.
