Cash is the oxygen that enables a business to survive and prosper and is the primary indicator of business health. For this reason the inflow and outflow of cash need careful monitoring and management.
A cashflow forecast can be an invaluable business tool if it is used effectively. We will help you identify any potential problems , but will also enable you to see clearly whether or not you are financially able to take on major commitments.
What to look out for
Cash outflows
- purchase of stock, raw materials or tools
- wages, rents and daily operating expenses
- purchase of fixed assets - PCs, machinery, office furniture
- income tax, coproration tax, VAT and other taxes
Cash inflows
- payment for goods or services from your customers
- receipt of bank loan
Some of the key methods to help reduce the time gap between expenditure and receipt of income
- Identify potential cashflow problems
- Avoid the problems of overtrading
- Get paid on time
- Negotiate the right deal with suppliers
- Decide whether to lease or buy assets
- Increase your profitability
If you prefer assistance with this service in relation to a business plan please contact us.
