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

 

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.


What Gets Measured, Gets Managed


If you’re not actively tracking your financial results and key business drivers, you’re operating in the dark. You can’t improve what you don’t measure.


A management report—or even better, a live dashboard— provides real-time insights into your financial performance so you can track actual performance against your budget. It forces you to step back, assess your financial position, and take proactive steps to get back on track.


Where Does Your Business Stand?


Wouldn’t it be great to compare your business performance to others in your industry? When setting your budget for the year ahead, we can help you compare your targets to industry standards.


We provide benchmarking data that helps you:


  • Understand where your business stands today compared to industry peers.
  • Set clear targets to reach the top 20% in your industry.
  • Identify key areas for growth and efficiency improvements.
  • Determine how much your business could be worth with the right strategy.

Armed with this data, we can help you bridge the gap between where you are and where you want to be.


Take Action Now – Get Your 2026 Cash Flow Forecast Sorted


If you’re serious about taking control of your business finances, improving cash flow, and achieving better results in the 2026 financial year, now is the time to act.

We’re currently working with businesses to develop cash flow budgets for the year ahead. Book a meeting with your Outside go-to, and we’ll help you:


  • Create a clear and practical cash flow budget for 2026
  • Track your performance vs. industry benchmarks
  • Identify opportunities to improve profitability and cash flow

Let’s make 2026 your best financial year yet—get in touch today!


Your Outside Team

 

 

 

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Mail: PO Box 24-457, Wellington 6142

Phone04 889 2975

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