We're doing a five-part series on cash flow management. Our first tip was about understanding our business, the second one about record-keeping and budgeting, the third about funding your business and this fourth one is about managing cash flow. I've been getting some landscaping done at home. It was interesting when the rocks and soil arrived. We received an invoice as well. This is actually good planning from the business. They'll have the money in the bank to pay their supplier, so you need to have a review of when you're receiving your invoices and when you're issuing your invoices. You don't have to wait till the end of the job, because by the time the people paid they actually could be 30-60 days before you receive the money in your bank.
It's also interesting to note a very profitable business can also go under because it's like in cash flow, there is a difference between a net profit and cash flow things like loan repayments drawings from the directors, all of these come out of the bank but don't necessarily come into the cash net profit. So if you're interested in finding out some more information just send me a message. We're holding strategy sessions to help some business owners get through with their cash flow. 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.
0 Comments
Leave a Reply. |
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 |