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.
MYOB Public Relations & Corporate Affairs Manager
02 9089 9068 / M: 0407 450 860 / email@example.com
Established in 1991, MYOB is Australia’s largest business management solutions provider. It makes life easier for over 1.2 million businesses across Australia and New Zealand, and provides support via many client service channels including a network of over 20,000 accounting firms, bookkeepers and other consultants. MYOB’s solutions simplify accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more, for businesses of all shapes and sizes. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than AU$30 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.com.au.