Cashflow Confusion: Why It’s Costing NZ Businesses More Than They Realise

Business owners often think of profit as the goal. But in reality, cashflow is what keeps your business alive.

This article comes straight from a conversation between Peter Ranyard and a business owner who proudly said:

“I’ve got no debt and I pay all my bills on time. So my cashflow is fine, right?”

Not quite.

What Cashflow Really Means

Cashflow isn’t about having no debt. It’s about:

• Knowing when cash comes in and goes out
• Being able to meet obligations before they’re due
• Forecasting future movement, not just reacting to your bank balance

Without clear forecasting, you’re flying blind, especially during slow sales cycles or tight months.

Why “No Debt” Doesn’t Equal Good Cashflow

Many small business owners say:

“I’m good with cash-I pay everything when it comes in.”

But that’s not cashflow management. That’s reactionary bookkeeping.

Here’s the risk:

• If your receivables slow down
• If a large invoice is delayed
• If your own bills stack up all at once

…you’ll feel the cash squeeze instantly.

What’s a Cashflow Forecast?

A cashflow forecast tracks:

• Money in (receivables, sales, other income)
• Money out (bills, wages, rent, tax, etc.)
• Timing (when those events happen, not just how much)

It helps you:

Spot shortages in advance
Negotiate supplier terms ahead of time
Pay GST, PAYE and wages confidently
Sleep better knowing you won’t get caught short

Client Success Story: Fire Control Services

“Oxygen8 gave me the tools, the timeline, and the plan. We’ve turned the business around – faster than I thought possible.”
– Brett Webster, Fire Control Services