So you think your business is doing well! You have clients,your phone is ringing at a steady pace and your work day is pretty full!
On paper, the balance sheet is looking good-so how come there are not enough money to pay bills?
Cash flow is at the heart of every business-and making sure it “flows” through your business accounts is paramount to maintaining a sustainable business.
Here are my 3 tips for keeping on top of your business cash flow:
- Do your research! Before taking a client on, make sure you know more about them.Do they have good references from previous work contacts/clients? Are they a real business? Are they registered with Companies House? Find out as much as you can about a client before taking them on-do your risk assessment!
- Have a clear credit management system! Make sure you send your invoices on time and they show clear payment terms.Follow up with a reminder when the invoice is due and tough emails are great, a courtesy call always helps! If you use a cloud accounting system, state your terms in the Invoice options and the system will do the work for you.
- Reduce your spending! Go through your bank statement and see what your money is going out on.Is there something you do not really need and you could do without? Maybe there is a service you are paying for that you could take on yourself until things improve, or you could find a cheaper provider.
The above are just a small amount of things you could do to improve your cash flow.We offer a personalised service that will suit your business and your personal circumstances the most.
Why not give us a call for a FREE, no obligation initial chat and find out how we can help!