As a result it would be expected that every business owner would have a clear strategy on cash flow management in order to minimise cash flow problems. Unfortunately this is not the case. So why do so many businesses fail to manage their cash flow? It is not as a result of business owners not understanding their business, as cash flow management can be quite a complicated process. Cash flow management requires specialist knowledge and without the right systems in place can be extremely complicated to manage. Every business has as different cash flow cycle. Some businesses are highly seasonal and others have long lag times between orders and payments. Understanding how a business’ cash flow cycle operates is key in building a strong cash flow management strategy.
Managing the cash flow process is one of the keys of any finance function. All to often I see good businesses that really struggle with this process. Resolving cash flow issues should be a priority for any business. The stress that poor cash flow management can put on business owners about being able to pay staff, and suppliers is huge and it should be avoided at all costs. You can do this by having the right systems and procedures in place.
“If I have put the fear in you then good as cash flow is key to the survival of any business.”
What can you do to avoid these problems?
Some cash flow issues can be resolved quite quickly at little expense. Usually poor cash flow is as a result of a lack of systems, processes and reporting.
Let me work with you in improving your business’ cash flow by: