Maximising Profit and Managing Cashflow: Key Financial Objectives for Business Owners

As a business owner, your ultimate goal is to achieve profitability. This entails generating sufficient sales with healthy profit margins to ensure your enterprise’s success. However, it’s crucial to understand the distinction between profit and cashflow and recognize the significance of cashflow management.

Differentiating Profit and Cashflow

To gain a comprehensive understanding of profit generation and cashflow management, let’s delve into the definitions. While you may rely on your advisor to handle the intricacies of accounting, mastering these concepts is an invaluable skill for effective business control.

Profit: Profit represents the surplus derived from your income after covering expenses, supplier bills, taxes, and more. It is driven by establishing a profit margin and creating value through your products or services.

Cashflow: Cashflow refers to the ongoing process of ensuring that your business has readily available cash to support its operations. It is the lifeline that allows you to trade, pay suppliers, cover wages, purchase raw materials, and meet other financial obligations.

The Importance of Positive Cashflow

The adage “Cash is king!” holds true even today, as it remains a fundamental principle underlying any successful business model. While achieving year-end profitability is commendable, neglecting cashflow management jeopardizes the long-term survival of your business.

To maintain financial well-being, effective cashflow management is essential. Without a careful focus on your cash numbers, your business can quickly encounter challenges.

A company may generate substantial revenue and significant profits on paper, yet struggle with poor cashflow. In other words, it can end the period with profits but lack sufficient liquid cash to sustain day-to-day operations throughout the period.

Enhance Your Cashflow Management with Our Expertise

Successful cashflow management involves maintaining control over your cash inflows (revenue generation) and outflows (expenditures). To achieve positive cashflow, it is vital to proactively ensure that your inflows consistently exceed your outflows.

As your trusted advisor, we can assist you in establishing detailed cashflow reporting and forecasting systems. These tools enable you to maintain a favorable cashflow position. Additionally, we will guide you in optimizing revenue, maximizing profit margins, and meeting your financial targets.

Contact us today to discuss how we can enhance your cashflow management strategies.


Your Outside Team



Need a bit of assistance with your business? Contact an Outside Accounting team member today and learn more about our fixed fees. You won’t regret it.

Aside from business consultation, we are business accountants Wellington who offer accountingbookkeeping, payroll services designed to help you achieve greater financial success.

You can click here to speak to a businessaccounting and bookkeeping firm. We will give you a call to know more about your needs. We will explain to you how we can improve your business. 




Wellington Accountants | 

Business Accountants | 

Construction Accountants 

Property Accountants 

Contractor Accountants 

Hospitality Accountants |

Property Developer Accountants | Accountants Wellington | Wellington Accountant | Restaurant Accountants | Cafe Accountants | Business Consultation | Business Adviser

AddressLevel 2, 182 Vivian Street,
Te Aro, Wellington 6011, New Zealand 

Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: Understanding Changes in Residential Property Taxation

Recent years have seen significant adjustments to the tax landscape, particularly concerning residential property. The government has responded to calls from various quarters to address investor demand in this sector. Notably, recent changes have been initiated to reverse tax policies affecting residential property, aligning with promises made by both National and ACT during their election campaigns.

Read More »
New Zealand Accounting, Bookkeeping & Property Business Consultancy Services | Wellington & Lower Hutt Xero Property Accountants Business coach business consultation business adviser

Business Accountants: GST on Housing: Avoid Surprise Tax Bills

As we approach May 2024, it’s crucial to address potential GST pitfalls when selling property. Over the past decade, there have been instances where property sellers, unaware of GST implications, faced unexpected tax bills, especially those converting residential properties into holiday rentals or using them for business.

Read More »