If it appears that the cash balance will be unacceptably low at any point, resulting in potentially dangerous liquidity problems, then corrective action must be taken. The following methods could be considered.

• Arrange extra finance
• Improve working capital management
• Defer capital expenditure or sell assets
• Cut operating costs or raise prices
• Encourage debtors to pay
• Smooth your expenses throughout the year
• Consider Factoring
• Adopt the 10% Savings Method
• Ensure that YOUR salary is reasonable
• Cut the highest salary or increase their workload
• Delay paying your creditors
• All salaries must be reasonable
• Open a separate Tax Account
• Increase your use of Budgets and Forecasts
• Adopt Expense Provision and Reserve accounts
• Apply for any Grants
• Sell Assets that are not working for you
• Contact Centrelink
• When Times are good put money aside to cover your 'rainy days'

Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.
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