26 Oct 2011
Cash flow concerns to replace Christmas cheer
New research from the MYOB Business Monitor released today reveals Aussie business owners are very pessimistic about an improvement in Australia’s economy any time soon, showing declining revenues and low expectations of improvement within 18 months. Traditional optimism about Christmas period sales increases has evaporated.
The October 2011 MYOB Business Monitor finds:
Tim Reed, CEO MYOB, said, “Today’s findings paint a stark picture of how tough Aussie business owners have been doing it over the past year. Queensland business owners have been particularly hard hit, with 50% of all business owners reporting revenue falls.”
“With little or no prospect of a Christmas boost to sales, many businesses will need to take other action. We suggest business owners talk to their business advisors or accountants to review or create a cash flow plan, particularly managing purchases. Managing team leave carefully is also another area to look at as this can impact on both cash flows and bottom line results. It is also important to be smart about marketing - getting online to reach more customers if your business isn’t already using the internet is a good idea,” Mr Reed advised.
Longer term revenue predictions are also gloomy with the majority of Australian business owners (58%) expecting revenue to remain the same or reduce in the next 12 months.
The Christmas Quarter (October-December 2011) report card:
|More work or sales in pipeline for Q4 than usual||Less work or sales in pipeline for Q4 than usual|
|National average||29% (was 49% in 2010)||30% (was 14% in 2010)|
|New South Wales||29%||28%|
|Start-up businesses (<2yrs)||44%||23%|
|Establishing businesses (2-5yrs)||28%||34%|
|Maturing businesses (5-10yrs)||27%||34%|
|Established businesses (>10yrs)||20%||40%|
The MYOB Business Monitor is a nationwide survey of 1,000 Australian business owners, across a range of small and medium businesses, from sole traders to mid-sized companies, and representing the major industry sectors. The MYOB Business Monitor is designed to research key areas of business performance, including profitability, cash flow and pipeline work.
Manager - Public Relations, MYOB
02 9089 9068 / M: 0407 450 860 / email@example.com
Established in 1991, MYOB is now Australasia’s largest business management software provider. Its 50+ products and services have been employed by more than one million businesses in Australia and New Zealand. MYOB serves businesses of all ages, types and sizes, delivering solutions that simplify accounting, payroll, client management, websites and much more. With a network of more than 20,000 accountants and other professional partners, it provides the support and tools that help make business life easier. Today, MYOB is extending its solutions online and delivering innovation through cloud computing, enabling clients to make smarter connections with their business partners and customers: http://myob.com.au/smarterconnections.