Get to grips with your cash flow with these simple steps. Here are seven practical cash flow wins for you:-
- Set aside an hour a week to review your bank statement, debtors and creditors reports. This is a really good habit to get into – the more familiar you are with your regular transactions, the more easily you will spot anything that looks odd;
- Prepare a cash flow forecast for the next 12 months. This will help you see if you have any future funding needs ahead and give you time to plan for them;
- Tighten up your credit control process. Who is overdue in paying you? Chase them now;
- Who is due to pay you in the next two weeks? Email them and check they have processed your invoice – this will also keep your front of mind. Ask them to confirm the payment date;
- Nothing due in? Do you have anything ready to invoice? If so, do it now.
- Do you have any work that’s part-done? Can you invoice for some of it now? If not, prioritise so you finish it and can invoice as soon as possible;
- Change your terms of business. Always request at least part-payment upfront. And make sure your invoices state that they are payable when issued.
There will be another 7 practical cash flow wins for you next week.
What to do next
Speak to your accountant about preparing your cashflow forecast. If you need more help, or don’t have an accountant, or have any questions, feel free to contact me. I’m here to support you and there are lots of ways to get in touch – by email at firstname.lastname@example.org or on 07970 314907. You can also find out more about my services here.
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