Why you can Never Judge a Business by its Profits

Craig Alexander Rattray is a Growth Strategist and Cash Flow Expert based in Glasgow, Scotland. He is the author of Mastering Cash Flow for Business Owners. The UK government has announced a consultation into the future of auditing, in an attempt to avoid major collapses like BHS, Carillion, Thomas Cook and Patisserie Valerie. There are various proposals that Business…

Why it Counts to Understand the Numbers

As the business owner you are not expected to be the finance expert. However, you must understand your financials and your cash flow. Many business owners who have run their own company for many years are often too proud to admit they do not fully understand accounts and finance. Do not be one of them!…

What Does it Mean to Own a Profitable Business?

Profit is the difference between the total of all sales less the total of all costs and expenses for a particular period. Many business owners may realise at some stage that that the profit they make in the business does not equal their cash flow, unless they are dealing solely in cash, which is unlikely…

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…