How to Ease the Scourge of Late Payments

Credit terms and cash collection processes are a key part of good cash management. Intuit QuickBooks report stated that one in seven companies have been unable to pay employees because of late receipts from customers. Late payments not only damage the companies involved, they can take their toll on the business owners personally with respect…

How to Better Manage Payments to Suppliers

Process invoices faster Do everything every day. When invoices are received, they should be posted into the accounting system immediately and formally approved in some way depending upon the system you have in place.  Ideally, the invoice should be matched to an already approved Purchase Order, but if not, there should be a procedure in…

How to Become a Cash Flow Master

CASH FLOW TIPS: Craig Alexander Rattray says it is important to understand the timings of cash flow There are three key components of a cash forecast: Cash receipts or inflows – principally receipts from sales to customers.  As a business owner and having reached this section, you already know that you should use historic data to…

Give Yourself Headroom By Keeping Tabs On The KPIs

CASH FLOW TIPS: Craig Alexander Rattray says key performance indicators (KPIs) and ratios give a guide to liquidity The most important key performance indicator (KPI) is the cash balance and, clearly, the higher this is the better. Similarly, the KPI which calculates the level of cash headroom available is also important. This KPI can be used…

Don’t Let Late-Payers Put a Strain on Your Business

If you’re having problems getting payments from customers you could try some of these methods to improve cash inflows: Automatic payments from customers who pay for an ongoing service or product.  This “recurring revenue” is of huge value to any business and means the month always starts with some guaranteed sales and cash in the bank. …

Don’t Let Debts Overwhelm Your Cash Flow

The popular saying goes “another year older, another year wiser”. We are all certainly a year older, but are we any wiser? The twelve-month anniversary of lockdown was last week. When Boris Johnson gave us a very simple instruction to stay at home and said that the restrictions would be reviewed in three weeks, did…

Dear Mr Sunak, Please Do Not Betray Entrepreneurs

SMEs are the lifeblood of the UK economy. The owners of many of these businesses have been the risk takers and the creators.  They have created thriving profitable businesses, perhaps having taken the risk to leave employment themselves, and to employ others often to their own short-term detriment. In many cases the business owner is…

Controlling Cash Flow is a Key to Survival

A focus on cash for many businesses is vital for the challenging months ahead, writes CRAIG ALEXANDER RATTRAY “Cash is king”. A phrase that has been used over the years to highlight the advantage of holding cash compared to other assets. For the typical SME business owner, never has this phrase been more important. Anyone…