skip to main content

Maintaining Cash Flow: Top Tips

Whatever the economic situation for any business of any size it is crucial that a steady cash flow is maintained. Having enough funds to cover everything from daily expenditure to employee payroll is the key to survival but unfortunately many fail to establish the perfect balance and as a result soon find their business going under.

For any small or start up business, cash flow is the key to longevity because as they say ‘...profit is sanity, cash is king’.

In order to give your business the fighting chance it deserves, the team of small business finance specialists here at Calculated Accountants have compiled a list of top tips that can help you keep your cash flow going steady...

  • Strong Rules- One of the main reasons a business’ cash flow can face trouble is as a result of overdue invoices. Implement a time frame and set rules as to when a payment must be made (the standard benchmark is within 30 working days) and when it will be classed as overdue in order to avoid falling behind. Keep in mind that you are legally entitled to charge a late payment fee, although this may not be the ideal solution, for many businesses there is often no other choice.
  • Cash Cushion- To save your business from falling into debt, create a cash cushion. By working out all average outgoings, you can determine the exact amount you will always need to have in your account. Always having a specific sum in your account will ensure that, in the event of any overdue payments you can still comfortably honour your financial commitments.
  • Have a Good Accountant on Your Side- Successful cash flow management is often never easier than with the support of an experienced accountant. Monitoring incoming and outgoing payments, tracking growth and any potential pitfalls and speaking to late paying customers is never easier than with the support of a specialist accountant.

Maintaining a seamless cash flow is no easy task but hopefully our above points may give you some indication as to how your small business can avoid any unwanted and unnecessary debt.

Cash flow and business finance is no easy task so if you are a start up business owner be sure to seek professional advice to protect yourself from any risk. 

Share this article:

Back to Blog

contact us
fixed fees
Get In Touch