We properly manage your cash flow
Cash flow management can be a tricky business, particularly for owner-managers of small or medium sized companies. The ability to balance the receipt of cash in a business with the payment of bills as and when they fall due is a critical function in any business.
Many owner-managers either fail to understand, overlook or simply ignore the importance of cash flow management and they do so at their peril. In fact, poor management of cash flow is often cited as the primary reason for business failure.
Businesses can implement a number of steps to help manage their cash flow. At Anne Brady McQuillans DFK, we help clients use a systematic approach to take control of their cash flow in order to protect the business's short-term reputation and position it for long-term success. The following list of measures and illustrates some of the key areas that any cash management strategy should address:
- Use a structured, well defined approach to credit control;
- Be careful of substantial financial commitments;
- Prepare a forecast;
- Manage your creditors;
- Look for warning signs;
- Develop a good relationship with your bank.