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…

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. …

A Growing Business Also Creates More Risk

A Growing Business Also Creates More Risk Many business owners have multiple opportunities but a combination of fear and uncertainty, a lack of knowledge of how to do it and the related financial implications, as well as a lack of finances, prevents them from taking advantage of these growth opportunities. Like many finance-related problems and…

How To Run Your Business From The Beach

How to Run Your Business From the Beach Despite widespread expectations, the Chancellor did not make any changes to the capital gains tax regime and business asset disposal relief in the Budget. So, what now? Most commentators expect the changes are inevitable and, sadly, I agree.  We can safely predict that the new regime will…