Jonathan McNair, Partner at Baker Tilly WM LLP, recently penned a blog post for Small Business BC titled "How to Master Small Business Financial Planning." A brief excerpt below:
"Are you constantly operating at the top of your line of credit? Are your trade accounts payable getting bigger and older? Are you struggling to make payroll or pay the landlord at the beginning of the month? Are you failing to remit GST and employee source deductions because you just don’t have the cash? If only you had a bit more money!
In our experience, ‘needing a bit more money’ is a symptom of an underlying problem. The slide into insolvency is often a slow insidious process borne of poor financial management usually owing to a lack of financial information; the proverbial “death by a thousand cuts”. Other times, the factors leading to insolvency can come on more rapidly; the loss of a major customer or a large receivable that is suddenly uncollectible.
All businesses have financial challenges. Ironically, a successful business can experience similar cash flow issues to a less successful operation – usually just for different reasons. If you find your business struggling financially, all is not lost. There are typically five factors that are necessary for a business to weather a serious financial storm.."
Click here to read the full article on Small Business BC's website.