Welcome we're doing a five-part series on cash flow management. The first one was understanding your business, our second one was about record-keeping and budgeting and today is about funding your business. How comfortable do you feel chasing your debtors? It's usually the last job that people like to do, asking for money. But if you have a think about it that's your money and you're funding your customers businesses, so it is really important to make sure that you collect your fees on time. That requires having a plan. There's different types of fundings for business and you need to have a review quite regularly of what funding you have. There's credit cards, bank overdrafts or term loans. Just remember the credit card fees are very expensive so you really need to try and reduce the amount that you're putting on that card, or make sure that it's paid before the due date. Another type of funding is debtor funding. This is also very expensive but sometimes necessary. At the end of the day it's all about planning and making sure that your records are up to date and you're well aware of where things are at. Are you using your accounting software? If you're not, again if the bank asked for some financial statements to get out a loan for you, you're not going to be able to be prepared if your record-keeping is not up to date again.
You're not going to be able to provide good quality financial statements for the bank. All this is really important to help move your business forward. If you need any assistance at all just let us know and we'll be able to help you. Owning a small business is an exciting challenge. However, it is easy to get sucked into living day to day and lose direction. By focusing on the 5 main areas of business growth you can grow a business that will allow you to live the life you want. So if you feel like your business is growing faster than you can keep up, email [email protected] to organise a free chat.
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AuthorLynne Spalding, founder of FCS, spent more than 20 years working in an Accounting practice before founding Financial Controlling Services in 2002. She brings more than 35 years of experience in accounting to each client. Categories |