5 simple steps to positive Cashflow
It is often said ‘Turnover is vanity, Profit is sanity but Cashflow is reality’. At MATCH Accounting we could not agree more so here are 5 simple steps to help with your business cashflow:
- Ask customers for deposits before commencing work – Talking money can still be a sensitive issue at the start but if there is no genuine reason why a customer would not pay a deposit, then maybe you should ask yourself why?
- Be selective when paying supplier invoices – the smallest one’s are easy to pay before they are due but are they the most important to your business? Would a part payment towards a major supplier who regularly provides you with their services be more beneficial? If you rely heavily on that supplier to carry out your work, the last thing you need is for them to stop providing you with those services.
- Talk to your suppliers – Yes, actually pick up the phone and speak to them. They may be more understanding of your position then you think. Maintaining a good relationship, and possibly negotiating a repayment plan and avoiding any unnecessary interest, is better for your cashflow and business relationships in the future.
- Make sure invoices are issued promptly, reviewed for slow payers and chased – By doing the chasing early it allows you to deal with any issues regarding the invoice and non-payment. These issues can then be discussed, resolved with the invoice being received in full.
- Saving the best to last……………….. KEEP ON TOP OF THE NUMBERS – How can a business keep on top of its debtors and creditors when it cannot identify them from their records? The answer is they cannot. Keeping your records up to date allows you to identify any trends, slow payers etc…. and help your cashflow. By producing up to date figures, you can see where the business is spending money and you can then make informed decisions on where possible savings and possible cashflow advantages, can be made.
At MATCH Accounting, we can certainly help you with all of the above. We use some of the most up to date software to ensure that businesses owners have the right information at the right time.
There are of course many more steps you can take and if you would like to know more, please contact us to arrange a FREE, no obligation consultation.
We look forward to hearing from you soon.