Managing your cash in tough times

15 August 2022

With ever-increasing supplier prices, a rise in interest rates and a looming recession, managing your business’s cash and understanding the flow are now vital tools in maintaining resilience and being able to adopt flexible strategies for success.

Cash flows are a reflection of all the cash that is flowing in and out of a business. Owners can look at the direction of the cash flows for insights into the health of specific products or services and overall market patterns.

Some types of businesses are more likely to run into cash flow problems, while other types appear to be more resilient. If you are a business owner, you might be wondering which category your business falls into. No matter how inventive or straightforward your business model is, you can still have problems with cash flow.

Here are our thoughts on managing the flow of cash in your business:

  • The first stage of understanding and predicting how funds flow is to perform a health check on your accounts. Look at your latest profit and loss statement and check that your income is sufficient to cover your expenses. If your profit is falling behind your expenses and cash flow is slowing down, you might need to take action. Prepare a funds flow statement so you know where the money goes.
  • Next, create a yearly budget and look where cash could become tight and months where you can save to cover the quieter times. Look at those quieter months and think about flexible work scheduling, new products or services or other activities to tide you over.
  • Finally, make sure you collect your money from those who owe you quickly. Reward customer loyalty by offering early bird discounts, and set credit limits and payment terms to ensure customers follow the rules. If you take on new customers, make credit checks. Penalise late payers and request upfront deposits or payments.

 

Talk to us about preparing a funds flow statement and annual budget so that you can work on your business for maximum success.

Here at Maple, we fully support your plans for growth. Therefore, we have developed our Business Growth Accelerator packages.

Whichever package you choose, they have all been designed to:

  • springboard you to faster growth
  • help you overcome any obstacles blocking your success, and
  • help you to identify and seize opportunities
If you would like to to discuss this further, please contact your client manager, email us at: success@maple.uk.com, or call the office on 01332 207336.

Maple Accountancy is a firm of expert Business Advisors offering accountancy services, tax and business advice to owner-managed and family-owned businesses.

All clients are individual, and we tailor our service to your needs. Use the site to find out what makes us different and understand why you should appoint us.

Offices

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83 Friar Gate, Derby, DE1 1FL
01332 207336

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0121 769 2197

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0113 418 2078

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020 7127 0649

Contact

Maple Accountancy Ltd.

83 Friar Gate
Derby,
DE1 1FL

01332 207336
success@maple.uk.com

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