Profit hone ke baad bhi SMEs cash-crunch face karte hain 💸
Root cause aksar sales ya demand nahi, balki poor record-keeping hoti hai 📉
Clean bookkeeping + timely MIS cash-flow visibility 25–40% tak improve kar sakti hai 📊⚡
The Cash Flow Paradox Indian SMEs Face
Shunyatax Global says that…
bahut saare Indian SMEs bolte hain:
“Sales achchi hai, profit dikh raha hai, phir bhi cash nahi bachta.”
Ye contradiction accidental nahi hota — ye record-keeping failure ka signal hota hai ⚠️
Common symptoms:
Bank balance par hi decisions
Receivables ka real ageing unclear
Vendor dues last moment par surprise
GST paid, lekin working capital tight
📊 Reality:
₹1–₹5 crore turnover ke SMEs me cash-flow issues ke 60–70% cases ka root cause poor or delayed accounting records hota hai (practical industry observation).
How Poor Record-Keeping Breaks Cash Flow
Cash-flow problem ek din me nahi aati — ye silently build hoti hai.
1️⃣ Delayed invoice recording
Sales hui, invoice late enter hua
Receivable ageing distorted
Cash inflow planning fail ❌
2️⃣ Expenses tracked after payment
Real cost picture missing
Margins galat assume ho jaate hain
Pricing & discounting errors 📉
3️⃣ No bank reconciliation discipline
Actual cash vs books mismatch
Hidden charges, reversals unnoticed
Cash visibility blur ho jaati hai 🏦⚠️
📈 Impact:
Weekly reconciliation karne wale SMEs issues 4× faster identify kar lete hain vs monthly accounting.
Cash Flow ≠ Profit (Most Ignored Truth)
Profit accounting ka output hai.
Cash-flow timing ka game hai ⏱️
GST returns aur P&L aapko batate hain:
Kitna tax diya
Kitna profit hua
Lekin ye nahi batate:
Kab paisa aayega
Kab paisa jayega
Kaun client cash drain kar raha hai
👉 Ye gap fill karta hai structured bookkeeping + cash-flow tracking.
A Very Common SME Pattern
📌 Monthly sales: ₹30,00,000
📌 Profit margin assumed: 18%
📌 Expected surplus: ~₹5,40,000
Reality after clean records:
Old receivables blocked
Advance payments misused
Vendor credit cycle misaligned
👉 Net usable cash drops to ₹2,50,000–₹3,00,000
Poor records hide this truth until it’s too late 🚨
What Fixes Cash Flow Problems Practically
Shunyatax Global says that… solution fancy software nahi, discipline + systems hai.
Core fixes:
Weekly bank reconciliation
Live receivables & payables ageing
Expense categorisation at source
Monthly MIS focused on cash, not just profit
📊 SMEs adopting structured bookkeeping report:
25–40% better cash predictability
Lower short-term borrowing dependency
Fewer last-minute GST & vendor shocks
Read the Full Original Article
This Dev.to post is a simplified explanation.
👉 Complete breakdown with Indian SME context:
🔗 https://shunyatax.in/blogs/blogs-for-saints/cash-flow-problems-poor-record-keeping-india
Need This System Implemented?
Shunyatax Global says that… cash-flow problems are rarely about money — they’re about visibility.
👉 Explore Bookkeeping Services in India:
🔗 https://shunyatax.in/pages/bookkeeping-services-in-india
Includes:
Clean, up-to-date books
Cash-flow focused MIS
GST-aligned accounting
Decision-ready reports
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