Cashflow Management - All you need to know!
What exactly is cash flow management, and why is it so important? Cash flow management is the process of tracking how much money is being brought into the business and how much is going out.
In many situations, business owners will find themselves with many sales but not enough money to pay off debts, creditors etc…
This is called a cash flow gap, one of the biggest issues businesses face.
Want to know a couple of tips to help keep on top of your cash flow? Then keep reading!
Send Invoices Quickly
Sending \invoices quickly can really help with your company’s cash flow management. The later invoices are sent the later you will receive the money.
This might sound very obvious to some people, yet it will surprise you how many forget this.
Make time every month to send invoices, and get cash in quickly!
Cut Costs where you can
Understanding where it’s possible to cut costs is a good practice for any business. Keeping on top of all your expenses is one of the best ways of managing cash flow. Carry out in-depth reports on where the business is spending money, and see if there is anything that could help you cut costs.
These don't necessarily have to be massive changes, just a few cuts can help you save some cash!
Cashflow management is vital
When owning a business it’s easy to get caught up in the profit and completely forget about the cash flow, but it’s important to realise that these two are just as important as each other, and neglecting cash flow could lead to serious issues.
When creating a business plan, do not only focus on profit but also cash flow.
How Silver Insolvency can help you!
We have over 40 years of experience in the industry and can help you solve issues, which feel impossible to face.
Get in contact today!
0203 961 7169
07872 606 005