Managing your cash flow

The connection between cash flow and profit is always interesting and no more so than in Aged Care. On the positive side both government and resident contributions to ongoing services are paid in advance, thus minimising working capital requirements. On the capital side low care and Extra Service bonds provide a cross subsidy for High Care places.

Operationally non cash charges, facility upgrades and revenue items mean there is a low level of correlation between profit and cash flow.

Cash flow is important in all businesses. We see cash flow management in Aged Care as even more critical. In the For Service sector that relies less on debt and doesn’t have access to capital this is even more so.

Our experience in cash flow forecasting and review ensures our clients generate the cash flow they need to ensure sustainability of their operations while allowing operators to maximise use of any excess cash liquidity.

To find out more please contact our Guild Accountants Aged Care Team on 1800 101 296 or email us at agedcare@guildaccountants.com.au