-
Useful articles
-
Archive
Don’t get swept away by troubled cashflows
Good cashflow control, avoiding restrictions or delays, is the key to such strategic objectives, particularly for younger businesses or SMEs without 'deep pockets'.
Often a few straightforward cash-related tactics will help to cure troubled cashflows:
- Identify your critical financial constraints and measure them constantly.
- Establish strict credit control. Set out your terms and conditions and stick to them. Set up easy payment plans for struggling customers but don't let them exceed their limit.
- Produce monthly accounts so you can monitor your performance and review the cashflow. Adjust overheads – don't lose last month's gains through this month's losses.
- Never allow one customer to dominate your turnover. Spread your risk by developing more customers. Treat them all as equally important.
- Get your staff behind any cost-cutting exercise. They'll know where the wastage is, but maybe not how serious the need is to make cost savings. Tell them.
- Keep in contact with your bank and investors; make sure they are aware of your concerns and your successes.
And perhaps an obvious one…
- Seek our detailed professional advice to ease your cashflow decisions.
Call 0118 957 3238 or email accountants@valewest.com