As anyone who’s been in business for a while will tell you, cash flow is vital to enabling a company to survive and thrive. In these challenging times, it’s more important than ever that you have a plan in place for managing your cash flow.

An article for the Scotsman recently offered some simple and straightforward advice about cash flow management, that’s just as applicable in our personal lives as it is in business.

It all starts with getting the basics right. That means keeping on top of your record keeping and ensuring that your paperwork (and therefore bills) doesn’t pile up. You should also keep accurate records both of who owes you money and who you owe money to.

When you have a good overview of your financial situation, and therefore your cash flow, you can spot problems early and take action before they get too big. That might involve speaking to a lender about deferring or reducing payments for a time, for instance.

Business2Community also recently offered some advice to help companies improve their cash flow during this challenging time.

One of their top tips is to make sure you get people to pay you as quickly as possible. That means you should bill as early as you can for any work or goods you’re providing, as well as sending reminders when invoices remain unpaid for a certain amount of time.

If you’re concerned about putting together a cash flow forecast for your business, get in touch with us to tap into the expertise of our cash flow consultant to help get your company on track and prepare it for the future.