Your implementation of strong financial management and controls will be essential to delivering profitable growth. Too many SMEs flounder even though they are growing their sales because they do not pay enough attention to cash flow problems and managing money.
Poor management of your cash flow, at its worst, will lead you to a position where you have to declare bankruptcy. There are so many things you can do to avoid cash flow problems.
Tips for avoiding cash flow problems
- Review your terms of trade
- Conduct regular 60+ day outstanding debt reviews
- Put customers on stop who are overdue and have no valid reason for non-payment
- Invoice in a timely fashion
- Use stage billing to avoid cash flow problems for longer projects
- Make credit collection a team game
- Review your slow moving stock on a regular basis
- The credit collection function should be performed by staff who are competent
Rathbone Results can provide you with expert advice in how to put these top tips into meaningful action to put an end to your businesses cash flow problems. Your business will benefit from the experience that our team will bring from within your sector, with insight into the unique challenges you face to complement every solution.
Get support in dealing with the root causes of your cash flow problems, contact us today on 020 8798 0175.
Download our free Top Tips for strong cash management.