Those involved in accounting for small businesses are extremely familiar with the importance of having a steady, dependable cash flow.
How are New Zealand's businesses doing in this regard? According to October's figures from Dun & Bradstreet, strong economic conditions have enabled businesses to pay their bill faster than previous years. With more enterprises able to fulfil their financial obligations on time, the average time for paying an invoice fell to 41.4 days - making 2014's second quarter the speediest on record.
"As evidenced by the latest GDP figures, New Zealand's economy continues to perform strongly, with businesses benefiting from increased trade and a faster, more reliable cash flow," said Dennis Martin, managing director of Dun & Bradstreet in New Zealand.
"This benefit is clear in the long-term trend for faster business-to-business payments, which has allowed businesses to get their hands on money sooner, pay their own bills sooner, invest back into their business with more confidence, and in turn, keep money flowing through the economy."
Small and mid-sized businesses lead the charge, with organisations employing one to five staff members taking only 40 days to pay invoices and those with six to 19 employees coming in at 39.6 days on average.
Mr Martin emphasised the role of the "strength and resilience" of the economy on companies' ability to pay off their bills on time, noting that this trend demonstrates an improved ability to manage finances as a whole. What else can enterprises do to support their cash flow, even during times when the economy doesn't provide such a sturdy boost?
Often, slow invoicing and payment processes can get in the way of receiving incoming funds while organisations still need to pay off their own bills. Investing in software such as Accomplish's CashManager to streamline and speed the invoicing process is one way to ensure companies have cash on hand when they expect it.