Here are just some of the ways in which you and your business can ensure your cash flow remains healthy:
1. Speedy Invoicing
Whilst there’s the temptation to leave invoicing until the end of the month and deal with them in bulk, it’s clear that the quicker you can raise an invoice to your clients, the quicker you will be paid.
Whether you raise invoices manually, or use accounting software such as Xero, having an efficient invoicing system in place can greatly assist your management of cash flow.
2. Ease of Payment
Both you and your clients can benefit from an automated system of payment, be that a Direct Debit or otherwise. By offering you peace of mind that you have received payment and ultimately allowing you to focus your time on other areas of business, making it easy for your clients to settle payment is a sure way to ensure continuity of service and build a strong working relationship.
3. Remember to renegotiate
Don’t assume that cash flow is just about your clients. Your overheads such as insurance and energy supplier contracts should be reviewed annually to ensure that you’re getting the best value. Remember that by consolidating your suppliers, you can often gain greater bargaining power, so be sure to keep tabs on your outgoings.
4. Keep your bank informed
Effective communication with your bank manager can help you manage those critical situations where payment is late. An extension to your overdraft facility or a holiday on interest payments could provide vital to your cash flow. Be sure to inform and discuss any issues that you may have with your bank manager in advance or at least at the earliest opportunity.
5. Patience & planning
Business growth is key to your company’s future success, but it’s important to assess the resources you have available when considering taking on a big contract. Are you able to effectively process and deliver on your obligation? Remember that your reputation relies on the resources you have to hand, so be careful not to overstretch beyond your means before your business is ready.
Wilder Coe Ltd can assist you in a range of ways. From setting your business up with the latest accounting software to assess your cash flow in real time, to producing detailed financial forecasts to ensure that you plan effectively for your business growth, we are here to help you with your business growth.
Contact us at your earliest convenience on firstname.lastname@example.org or call 020 7724 6060.