Wellington Accountants: The #1 Reason Businesses Run Out of Money (And How to Fix It)

WELLINGTON, New Zealand - Feb. 18, 2025 - PRLog -- Why Budgeting is the Key to Business Success

Planning for Success

Did you know that 95% of New Zealand small businesses experience at least one month of negative cash flow each year? This means that even profitable businesses can find themselves struggling to pay bills if they're not actively managing their cash flow.

Every successful business starts with a clear plan. A business plan combined with a cash flow forecast gives you clarity on where your business is now, where you want it to be, and how you're going to get there.

Yes, stepping away from day-to-day operations to focus on strategy might seem difficult, but it's essential. This is your chance to review past performance, set ambitious yet achievable goals, and ensure your business is moving in the right direction. Better results are achieved by taking action. In today's competitive environment, standing still often means falling behind.

Why a Cash Flow Forecast is Non-Negotiable

An annual cash flow forecast is one of the most powerful tools for planning and decision-making. It ensures you always know how much money will be coming in and going out of your business—and when—so you can plan confidently and avoid financial surprises.

Key Benefits of a Cash Flow Forecast:

• Predict and plan for large cash outflows – Avoid financial shocks by forecasting major expenses.
• Identify key cash flow drivers – Understand the factors that impact your financial position the most.
• Track performance against budget – Use Xero or Syft Reporting to compare actual vs. forecasted cash flow.
• Avoid late payment penalties & interest – Plan ahead so you're never caught off guard.
• Peace of mind – Knowing your cash flow is under control reduces stress and enables smarter business decisions.
• Strengthen relationships with lenders & suppliers – Demonstrating financial control builds trust and credibility.

By proactively managing your cash flow for the year ahead, you're not just avoiding problems—you're creating opportunities to reinvest in your business, scale faster, and improve profitability.

https://www.outsideaccounting.co.nz