Managing a small business is hard enough with everyday challenges of employees, customers, suppliers and government.
Cashflow is crucial to the growth and survival of your business so it’s important to make sure you have the cash in your hands when you need it.
As business owners we all love to make a new sale. When you put so much effort into marketing and building your business, the last thing you want to do is turn Customers away.
Profit is not Cashflow. It sounds obvious but many small businesses rely heavily on their Profit and Loss to assess their Cashflow position. However this only provides part of the picture.
It is vitally important that the suppliers you rely on to service your business have strong cashflow and can meet all your expectations. So how do you recognise when things are not as good as they should be?
For businesses, waiting long periods to collect receivables and dealing with Customers who pay late is an unfortunate part of business life.