Cashflow is vital to the growth of any business
A lack of cash is one of the biggest reasons businesses fail. Having good cashflow puts your business in a better position to grow, invest in new products, pay staff and negotiate better supplier discounts. Cashflow is vital to the health of any business and you cannot prosper without enough cash to meet your immediate needs. Therefore, cashflow needs to be a key priority.
You should be able to see how much you owe, how much you are owed and how much you have in the bank. There are plenty of accounting tools available to help you do this, such as Xero, Quickbooks and Wave.
It is imperative that you devise a strategy that will facilitate your being paid promptly, whether your clients are small businesses, multinationals, or public sector entities.
David Mellor, The Guardian
Managing your cashflow will allow you to improve operational efficiency, better manage your costs and mitigate operational and financial risk. It also requires information and you will need to regularly review your data on:
Effective credit control can mean the difference between success and failure. It's an important aspect to running a successful business because, without money coming in on time, your cashflow can be impacted. As soon as you launch your business, you should make sure you have effective credit control measures in place.
There are some simple tasks that you can do to make sure your credit control is effective, which include:
You can also work with specialists in cashflow finance, who provide access to a flexible source of funding that matches your business requirements: