One of the most important yet often forgotten factors associated with running your own business is cash flow!
Cash is the lifeblood of every business. Without it a business won’t survive!
Cash flow is, in basic terms, money/cash that is going into your business and money/cash coming out of it, essentially flowing through it. It is so important to the health of your business as it focuses on keeping a track of your incomings and outgoings on a regular basis.
The aim is to keep a stable cash flow, making sure that there is enough money coming in to cover the costs going out. If there’s not enough cash flowing through the business it could cost you your livelihood!
5 Top Tips for Keeping a Positive Cash Flow
There are many problems that can arise whilst trying to keep a positive cash flow, from customers not paying on time to unexpected business expenses. Here are our 5 top tips to help keep your cash flow in the green:-
1) Always chase up outstanding customer invoices!
2) Get customers to pay by direct debit or standing order. Go Cardless is an ideal solution. This will clear up 90% of problems associated with customers not paying on time!
3) Send customer statements monthly so that they know what is outstanding and when it needs to be paid, which will in turn not only help your cash flow but theirs.
4) Ensure your payment terms are clearly stated on your invoice and any late payment fees are listed.
5) Have up-to-date financial information so that you know exactly what money is currently in the bank, what money is due in and what money is due out. Online accountancy software such as Quickbooks can help you do this and cash flow forecasts are a perfect tool for looking at future cash, which will in turn help you make better business decisions.
At Guidon Group we train you how to use online software and technology to save you time, how to keep up-to-date financial records, how to understand your cash flow and what the figures actually mean. We go the extra mile and prepare cash flow forecasts for you to empower you to be the driving force behind your business and succeed.
If you would like more information, please call Guidon Group on 01642 927265, e-mail Kathryn@guidongroup.co.uk or visit our website: www.guidongroup.co.uk