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Build A Better Business – Constantly Manage Your Cashflow

I know I go on about cash but a business can survive for a while without sales and profits but not without cash. In my years in business all the best business understand the importance of knowing what their peaks and troughs will be today, tomorrow, next week, next month and in many cases a year.

Forecasting and monitoring becomes increasingly important the bigger you get. It gives you time to arrange funding when you need it and identifies surpluses which can be used to invest.

You staff won’t be happy if at the end of the month you don’t have enough cash to pay them because you didn’t arrange funding and your cash profile means your customers only pay after month end.

It is vitally important to prepare monthly (preferable weekly) and yearly cash forecasts and then monitor these against actual cash positions.

Of course you need something to base these forecasts on and these will be built up from your reporting system and from your budgets and profit forecasts.

So again keeping proper records and a management reporting system are basic requirements to build up an accurate cash forecast.

Come in for a cup of coffee and a chat. We work closely clients in helping them build up cash forecasting techniques and reports.