How do I manage my cashflow?

As the saying goes, in business "cash is king" and so it’s crucial that you manage your cashflow carefully.

On one hand, it’s important that you collect money from your customers in a timely manner. But it’s also important to make sure you don’t over stretch yourself in your spending and that you can pay your commitments, such as salaries or taxes, as they become due. Failure to do so can be a painfully expensive lesson for a business to learn. Fortunately, there a plenty of tools and resources available to help you manage your cashflow – including apps such as Float, Fluidly or FUTRLI.

Here are some top tips to help you manage your cashflow:

It’s important that you’re on top of your accounts and you know exactly where you stand so that you don’t have any surprises
Make sure you invoice your customers in a timely manner and on the right terms
Make the most of payment terms afforded to you by suppliers
Look at alternative funding solutions via platforms, such as Capitalise, where you have borrowing facilities in place
It’s important that you collect amounts owed to you as they become due, that you chase overdue debtors and that you don’t let them become bad or irrecoverable debts.

All of these steps can be managed internally by you or your team, but if you need an extra pair of hands, we would be happy to help you with Cashflow as part of our Outsourced Business Services offering.

If you would like to discuss the systems that you can put in place to help manage your cashflow more effectively please us a call and we will be happy to give you some practical advice and solutions.