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Cash flow issues highlighted in 2013

05 December 2012 Stacey Moseley

Quick reaction time to cash flow issues and knowing the ins and outs of your books should be the main priorities of principals heading into 2013.

According to Shaun Bassett, head of real estate for Macquarie Bank Limited’s Macquarie Relationship Banking Division, heading into 2013 principals should be focusing on certain cash flow techniques to ensure continued growth.

“To keep it very simple, the amount of money coming into an agency should be higher than the amount going out,” he told Real Estate Business.

“To appreciate this, a principal needs to have an understanding of how to read a profit and loss report as well as a balance sheet.

“On top of this, the onus is on them to review this regularly – even if they employ a book keeper or accountant within their business.”

In Mr Bassett’s experience principals who understand cash flow and review their reports regularly have better reaction time and act quickly and decisively to issues within the business. 

“We have found that quick action versus delayed action or a reliance on improving market conditions to return a business to profitability is the difference between businesses surviving or otherwise in the market during recent years,” he said.

Cash flow issues highlighted in 2013
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