Cash flow management

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Cashflow advice and tips for small businesses

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Cash flow management

  1. 1. Cash Flow ManagementMade Simple Extend Improve Payment Cash Terms Collection Analyse Forecast Expenditure Regularly
  2. 2. Most small businesses only just manage to keep their headsabove the water.
  3. 3. They struggle to pay employees and debtors.
  4. 4. If they followed a few simple steps they could:
  5. 5. Achieve financial freedom
  6. 6. and spend money on revenue generating projects.
  7. 7. Top tips to keep your cash flow positive
  8. 8. Keep your suppliers to aminimum, it is better tohave a few keysuppliers.
  9. 9. Use your increasedspending power toleverage betterpayment terms.
  10. 10. Set up a robustpayment authorizationprocess.
  11. 11. Pay suppliers on time,but not earlier thannecessary.
  12. 12. If possible pay yoursuppliers after you havebeen paid by yourcustomers.
  13. 13. Credit check all customers before doing business with them
  14. 14. Offer a discount for early payment
  15. 15. Consider a factoring company to guarantee fast payment
  16. 16. Make sure that your payment terms and payment due dateare on every invoice you issue.
  17. 17. Run a report on all outstanding debts on a weekly basisand pursue all outstanding debt.
  18. 18. Get senior management involved in cash collectionprocess with long-term debtors.
  19. 19. Provide your customers with as many payment options aspossible.
  20. 20. Consider ending your business relationship with customerswith a bad payment history.
  21. 21. Small Businesses should forecasttheir cash flow at least on a weeklybasis.
  22. 22. When preparing a cash flowforecast you must remember cashand profit are not the same thing.
  23. 23. You could make a profit, but stilllose money.
  24. 24. Your cash flow forecast shouldcontain an estimate of when youthink will be receive money intoyour business and when you willhave to pay out.
  25. 25. Each week or month you shouldreview the forecast against yourbank statement.
  26. 26. This will help you pick up on anyvariances or discrepancies and willimprove your forecast in the future.
  27. 27. Contact Us for help with Managing Cash Flow www.arinobe.com cashflow@arinobe.com +44203 286 7829 +447825 002 908 arinobe_sme arinobe_sme

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