LUCKY SEVEN

Lucky SEVEN

GILLITTS-BASED ACCOUNTING FIRM MJ CHARTERED ACCOUNTANTS CELEBRATE THEIR SEVENTH BIRTHDAY IN OCTOBER, A VERY PROUD MILESTONE FOR BUSINESS OWNER, MELISSA JACOBS

In keeping with the theme of seven, Melissa shares the seven main reasons that cause businesses to have cash flow challenges. Solving these seven challenges will assist to alleviate any cash flow pressures.

Insufficient Sales – Be sure to know your break-even sales point. Divide this by the number of weeks in the month and even the number of trading days in the month so you can calculate how many sales you need to make each day to at least break-even. Remember sale is a function of generating leads and converting these, you need to master both.

Poor Debtors Collections – It’s no good doing the work and not getting paid, or not getting paid on time. Ensure you educate your clients on your payment terms, implement a collections process and do regular follow-ups.

High Debt Levels – Ensure you know your cash flow break-even point. Closely monitor all your expenses and cut out any fat. Pay off the expensive debt first.

Big Cash Gap – The timing difference between paying money out (to suppliers) and getting money in (from customers). Try and negotiate a longer payment term with your suppliers and a shorter payment term with your customers. Factoring your debtors can be an option for your business too.

Overstocked – Excess stock on the shelves ties up your cash flow. Ensure you implement re-order levels in your business and that there are sufficient controls around the ordering process.

Excessive Owners Drawings – Pay yourself a fixed salary on payday with the rest of the staff. Don’t live out of the till. Don’t buy what you can’t afford and don’t live beyond your means.

Insufficient Savings – Every business has a bad month. Work towards saving two to three months of fixed expenses as a safety net.

Recent Testimonial

MJ Chartered Accountants have provided us with accounting and business advisory services since 2014. The efficient and personal service we have received over the years has helped us to focus on other aspects of our business. Melissa and her team are very much a part of our company and go above and beyond the call of duty

KR van Staden, Director, Shades of Green

7 Interesting facts about MJ Chartered Accountants

� Started in October 2013 as MJ Accounting and Tax Solutions

� Moved four premises over the past seven years

� Hired 11 employees

� 181 active clients

� Melissa would have consumed 7 280 cups of coffee at the office over the seven years

� Melissa worked 4 368 hours of overtime in the seven years

� Melissa and Nicole are training to run the Comrades next year, to raise funds for lion conservation

MJ CHARTERED ACCOUNTANTS - Our Offer to You

A Complimentary Tax & Accounting Health Check to ensure all your affairs are up to date and fully compliant. To book your session email Melissa at melissa@mjacc.co.za