Why use a Cashflow

A business cashflow is one of your most important guides for decision management

As accountants and business owners we know the benefit of a cashflow. Your cashflow will provide you the information to decide how much money is available to invest in growing your business or purchasing a new asset you need to undertake a job faster. Also, cashflow is key indicator for your cash position in the future based on a set of pre-defined parameters.

As Thomas mentioned in the blog about Turnover, Profit and Cash. “Cash is King”, You need cash to pay bills, if your customers pay late or not at all then your ability to even remain solvent may be at risk. Understanding your sales flow, the cash stream you will receive, and the underlying cost payments will give you information to make decisions on wider business spending.

Once you have a cashflow, we guarantee you will begin to think differently about how you spend money and where you will invest. Being quantitative is key when running a business if you want to grow the business over time and increase the cash it holds in reserves for future investments and income distributions.

Every business needs a stable cashflow to survive, those who have seasonal incomes need to manage their cashflow with greater skills to ensure overtrading does not occur. We can partner with you to help define how best to tackle managing your cashflow to maximise your business benefit. Outcomes from reviewing the cashflow will likely lead to business changes which in turn will enhance future improvements in your cash position based on new business methods being undertaken, such as having a clear credit control approach.

Consider us your business partner, we can help you create a cashflow and then manage it. This service can be wrapped into your fixed price alongside a monthly or quarterly review with Thomas to evaluate progress and provide insights into the improvements. In between meetings the team will keep an eye on the developments and highlight any exceptions to both parties for review. We can manage some control of your finances to ensure people are paying on time and highlight to you any clients who are challenging payment so you are able to deal with the client issue before we re-request payment. Thomas can also provide terms and conditions guidance and payment policy support.

If are interested to find out more, please contact our team.