You founded your business on a great idea, and you execute on that idea excellently. But to stay successful, there’s one more critical thing you need to do: get on top of cash flow before it gets on top of you. It’s the reason companies with perfectly respectable paper profits can sink into bankruptcy. Why?
I) Cash flow forecast Accountants will tell you that cash flow problems rarely occur out of the blue. The chances are the warning signs have been there for a while, but no-one has noticed them. The vital question is:
Do you know your cash position for next six months’ time? If not, you may struggle to cope when things go wrong. If you can forecast that far future, and it doesn’t look good, you still have time to put in place a strategy to make it through the difficult growth period.(If you need cash flow forecast template, drop an email for complimentary copy now)
II) Customer’s liquidity position You know running a business, even a very profitable one, costs money. You might be seeing growing sales and happy customers, but you’re also spending time and money. When businesses grow, they quickly become more complex and it makes more difficult to see the cash position now, and forecast what it will be in weeks’ and months’ time. You need to monitor when the customers are paying and do they are paying on time & is anyone chasing them for payment?
III) Cloud Bookkeeping- right tool can help you The right tools for efficient bookkeeping are getting easier to use and are available online on monthly payment to monitor your business performance. Cash flow forecast will be a catalyst for driving the business forward.
Cash flow forecasting and monitoring proactively is more efficient than firefighting, and gives you more time to spend with customers and keep the business growing.
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