Operating a business can be challenging at the best of times. In the current climate, financial market uncertainty has created additional pressures with many Australian businesses starting to feel the pinch.

While this has negative consequences for cashflow, healthy local consumer sentiment and China's insatiable demand for Australian resources, have some sectors of the economy struggling to keep up with demand.

Cashflow is the lifeblood of any business. So making the most of yours, whether positive or negative, is vital for future business success.

Feast or famine?

Financial controllers know all too well about the delicate balance of reconciling revenue, costs and funding for future growth. For many businesses, cashflow doesn't come in a consistent stream - it peaks and troughs just like the seasons.

In a recent ANZ customer survey, one business operator said: "businesses don't know what they are going to do every month". While you can't control external factors like the global economy, or the weather for that matter, you can put systems in place to manage the cash you do have.

Managing the good stuff - revenue

This is the part that every business would like to have more of. When and how your customers pay you can have a significant impact on your daily cashflow.

Making it easier for your customers to pay you not only benefits them, but can help keep your bank balance in the black. Simple measures like introducing EFTPOS, direct debit, BPAY® or other electronic payment options expedite and simplify the payment process for both you and your customers. It can also help with record-keeping.

And the necessary stuff - payments

Paying your expenses on time is important for your business reputation. Establishing a good payment track record with suppliers means they are more likely to want to deal with you and give you a better deal. For flexible payments, timing them to coincide with the peaks in your cashflow cycle can benefit your balance sheet. Automating some of your payments can help save time and fees not to mention the positive impact it has on your reputation - priceless.

Choosing the right account

It's important to remember that transaction accounts are not all the same. Banks put a lot of effort and resources into designing accounts for different types of transactors. While some accounts are designed for day-to-day transactions others are more suitable for surplus or medium-term funds.

Each business has different preferences when it comes to banking - this can depend on the size and type of business. Some are high electronic users while others like to use cheques. For those who prefer an electronic solution, Internet banking allows 24-hour, 7-day access to transaction information and payment functions. Banking online can save time and help reduce fees as online transacting is one of the lowest cost methods available, particularly when multiple payments are consolidated into one electronic transaction.

Make sure your account suits your cashflow needs. Look at things like the number and type of transactions you do, your average balance, seasonality impacts on your cashflow, accessibility - that is how often you need to access your funds - and whether you make international sales or purchases. You can also talk to your ANZ Manager who can help you choose the right account for your needs.

Surpluses and shortfalls

If you're in the enviable position of having surplus funds your business could benefit from investing rather than leaving them dormant.

This issue was highlighted in ANZ's recent customer survey. Some businesses don't feel they have the confidence, education or information to invest their surplus funds. One customer said: "I myself am not a financial adviser, but I can share my ideas and I can do a bit of research on the internet or ask a couple of friends or whatever".

This is where seeking financial advice can help. A qualified financial adviser can help determine the right investment strategy for your timeframe and risk profile.

Even the most successful businesses can suffer from cash shortfalls from time to time. These can occur for a variety of reasons including seasonality factors, unexpected events or a business opportunity that is too good to miss. An overdraft facility can provide a safety net for business when times are tight.

Make friends with your bank manager

Managing your cashflows is more than just choosing the right bank account. It's about having access to the right solutions and advice at the right time. As one business operator said in ANZ's recent survey: "I would like someone to come in here and tell me what I am doing wrong".

Building up trust and relationship with your bank manager is so important and as one customer says, it is a win-win situation. "It is nearly a symbiotic relationship businesses and banks, they are reliant on the businesses providing their income and the businesses definitely need the bank to fund them."

Your ANZ Manager can help you find the right solutions for your cashflow needs - big and small. Whether you're after day-to-day transaction solutions, finance for future growth* or you want advice on how to make the most of your earnings, your ANZ Manager together with our product specialists may be able to help.

Speak to your ANZ Manager today.

Useful links

For more information about managing your cashflow click on one of the following links.

ANZ transaction accounts

ANZ business overdrafts

Starting or growing your business

Internet Banking for Business

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* All credit applications are subject to ANZ's credit approval criteria.