Cash Flow – Top Tips
One of the most important aspects of running a business is managing cash flow. Without sufficient cash, a business simply cannot function.
It is well known managing cash flow can be a challenging task, especially for small to medium sized businesses.
Here are our top 5 tips to assist you in managing your cash flow as efficiently as possible.
Invoicing is a key component of good cash flow management. Once you’ve delivered a product or service, don’t wait to invoice for it. The later you invoice, the later you will get paid.2. Keep accounts up to date
Keeping your accounts up to date enables you to view the financial state of your business at any point in time, helping you spot any shortfalls in cash flow before it's too late.3. Keep your business and personal finances separate
It is essential to keep business and personal finances separate. Combining the two could result in an inaccurate picture of how your business is performing.4. Build up a cash reserve
Building up a cash reserve enables business owners to have a safety cushion for any unexpected expenditure or unpaid invoices. This helps enable businesses to meet their cash flow commitments.5. Budget/forecast for expected large expenditure
If your business is expecting to incur a large outgoing of cash, for example for new equipment, it is crucial you budget for this to ensure your business has the sufficient cash to meet all business commitments.
If you would like assistance with preparing a cash flow forecast to help your business monitor its cash flow please touch base with the All Accounted For team.