According to Xero’s inaugural Small Business Insights report, only 50.7 per cent of businesses had positive cash flow as of June 2017.
That means about half were in the red.
June is typically a bad month for cash flow ahead of the new financial year. Small businesses usually find payments coming in soar in July.
Xero’s report, conducted with KPMG Enterprise, found that late payments were crimping working capital ahead of the financial year-end.