According to Damon Wells, one of the biggest issues facing small and medium-sized enterprises is not being able to accurately track and trace their cash flow.
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The Launceston-based accountant has more than 30 years of experience in the industry and has an extensive understanding of how managing cash flow leads to better overall financial management.
Mr Wells developed Flowcash, a cloud-based cash flow and forecast managing app, quickly adopted by local businesses for what he described as "ease of use".
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"I've worked across the north of the state in a lot of large family companies as well as ASX companies, and one of the key things that have always been an issue with businesses, particularly small and medium businesses, is cash flow management," Mr Wells said.
"Most businesses use Excel spreadsheets and that's what I used to do, but that can lead to issues when staff leave or go on holiday, and other people filling that role don't understand the sheet.
"In the past five years, I've dealt with close to 100 SME's in advising and they're all having the same problem."
Seeing a gap in the market, Mr Wells created Flowcash. He said it was particularly valuable for businesses during the COVID-19 pandemic.
"Flowcash allows you to understand your debtors and creditors, and know how their payment terms work," Mr Wells said.
"Particularly during COVID-19, when I've spoken to users who are on board now, they've said that Flowcash basically was a godsend to them, because they could see exactly when future cash implications were coming up.
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"That peace of mind I believe is what is most important for businesses."
One of the key aspects for business owners according to Mr Wells is that Flowcash allows them flexibility.
"If you're a business owner, you know that if you look at your sales and your debtors for the month, you know who are your good payers and who are people who string you out," he said.
"You can look at that and put your terms and conditions differently, so that you can be prepared and not rely on the funds from people who may not pay on time, aiding communication with suppliers and customers."
Flowcash is about to launch on Xero, a global cloud-based accounting software.
"We are just about through the testing phase," Mr Wells said.
"The next stage is having some users beta test it, which will be ready before Christmas. After that, Xero will do their testing and look at the API transactions.
"Once they are happy, we should be listed on their partner app page early in the new year."
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Ebony Abblitt
Ebony Abblitt is a features writer at the Examiner in Launceston, with an interest in pets, politics and people. | ebony.abblitt@examiner.com.au
Ebony Abblitt is a features writer at the Examiner in Launceston, with an interest in pets, politics and people. | ebony.abblitt@examiner.com.au
