Most of us; if we’re honest, would say we could do with a little more cash and could manage this better. Does this apply to you?
Do you even know what cash is? Cash isn’t just what is in the bank but also needs to be considered in the context of what is due in and what is due out in the future.
Similarly, the management of cash starts far sooner than the raising of an invoice and should not end once it hits your bank account.
In terms of cash coming in you should be fully understanding the associated costs and the time when these need to be paid in the context of when you can expect to receive payment from your customer. For example, if your customer is going to pay after 90 days but you need to pay your supplier after 60 days then you might have a problem.
Have you done a credit check on your customer though before ordering anything and have you even done a credit a check on your supplier so that they can deliver what they promised so you aren’t letting the end customer down.
Let’s assume everything went well; what can you look back on and learn? Were there any unexpected costs or just overall lessons learnt to take into the next piece of work.
Cash flow can be managed much better with the correct systems and processes built around it but don’t understimate the importance of this and do something today to improve it.
We can help so get in touch if wish to discuss further.
OFFICE SPACE FOR RENT
We now have a vacant office in our building available on flexible terms so if you or anybody know would be interested then please send them our way.
