It seems barely a day goes by when I don't hear about a business getting into strife as a result of poorly managed cash flow. Cash is so obviously crucial to the success of any business, indeed it is the lifeblood, but if it is so obvious, then why do so many small business owners struggle to predict cash flow and stay on top of it?
We've written about cash flow planning in the past, so we thought it beneficial to group a bunch of articles here in one place for ease of access.
- Tips for improving cash flow - this article offers a range of simple tips covering service agreements, invoicing, and debt chasing and how simple changes in your business can result in a significant boost to your bank balance.
- Scenario analysis - have you ever wondered "what if?" in your business? What if you hired that new member of staff, what if you took on that big new contract, what if ... then if so, you should not only be cash flow forecasting in your business, but also apply scenario analysis on top of this to see what the cash implications for these decisions are in your business.
- Budgets and cash flow - there is a range of great software out there that will talk directly to Xero which is great, but for some people the humble spreadsheet is all they require. Grab our free budget and cash flow template here.
- Why managing trade debtors is so important and what to do about it - trade debtors are your customers who owe you money, so it makes sense that having tight procedures around trade debtors would help when it comes to managing cash flow.
- Funding options for your small business - so what if the forecasting all tells you that you've got a cash flow black hole on the horizon? You might need to explore funding options, before it's too late.
Managing cash flow is a tricky beast for most businesses, especially small ones where the owner is wearing many hats with finance manager just being one of them. If the future of your business is looking unclear and you'd like some help mapping it out, why not get in touch today? We'd love to help.