Poor cashflow is a symptom and a problem. We take a look at practical ways to improve your cashflow.
Don’t bank on your bank for cashflow
No one is going to lend money to a business that doesn’t have its own house in order. So if cashflow is tight, that’s probably a very loud message that other parts of your business aren’t performing well and you need to take action – NOW!
Why two bank accounts are better than one
Your main bank account will certainly look to be short of money. But that’s partly the point! The second very powerful benefit coming from the exercise is that your main bank account should have a lower balance and this should act as a trigger to do something about it.
Clients – are they profitable and will I be paid in good time?
There’s no point having a client contract which either doesn’t make money or doesn’t pay you in good time. This doesn’t just apply to potential new business deals; it applies across your entire client base.
A gory cashflow model is a useful cashflow model – the bloodier the better
You probably can’t rely on your bank to save the day so it’s down to you
Getting paid on time – your company is NOT a source of alternative finance!
Getting paid on time – it’s one of the biggest drags on the business community and it hits the smaller business particularly hard.
But there are things you can do, it’s time to hit back.
Remember – your company is NOT a source of alternative finance for your customers!
Five tips to improve your sales invoicing
If you are being paid on credit terms then sending the URL instead of the invoice is simply creating a reason for your invoice not to be paid.
How good are your management accounts?
This company has annual sales in the millions of pounds and it reminded me that there are many businesses in the UK of all shapes and sizes that do not have adequate financial information.
Credit management – A sale is a gift until it’s paid for (part 1)
Many credit rating agencies can supply marketing lists pre-screened to contain only prospects with a decent credit rating. So, there really is no excuse to sell to high risk prospects in the first place.
Bookkeeping is the bedrock of your business – EBook
Good bookkeeping is the bedrock of every successful business. As you can see from our illustration, bookkeeping is at the centre of every aspect of your financial management and you let it lapse at your peril. However, we see too many businesses where the bookkeeping is not done well enough…