Cashflow is the number one complaint we hear as accountants as a struggle to conducting business. Having a strong cash flow is essential for small businesses to stay ahead. Improving your cash
flow not only makes it easier to plan and budget for future growth, but it also gives you the money you need to handle day-to-day business fluctuations. Here are our top five tips;
- Track and forecast cashflow: This strategy will give you greater visibility into your businesses cash flow requirements. It will reduce uncertainty by predicting any seasonal fluctuations sin income, so you can structure your expenditure accordingly.
- Improve Billing Management: Implementing a strict billing procedure to ensure invoices are issued and followed up on a timely basis will speed up cash coming into the business. A range of tools are available to assist with automation of this process to free up your time to do billable work rather than administration.
- Manage your costs: Ensure that you are monitoring your expenses to determine whether it is contributing to the growth of your business. Confirm you are entering the most tax effective fixed asset (e.g. vehicles or equipment) purchase arrangement. Annually review your regular outgoings such as electricity, phone and internet.
- Maintain cash reserves: You should always have a pool of cash available for unexpected expenses. This means leaving some profits in the business to build up a sufficient reserve.
- Access finance to solve cashflow problems: In case of emergencies have a backup plan including finance to help manage cashflow
Have you ever considered seeking help for your business to improve your cash flow? Contact the Team at Enright Holmes to review your cash flow wand to implement the right strategies for