10 expert tips for cash flow management

“At the start of each month schedule all your known outgoing BACS

payments. You will easily be able to see where

crunch points are likely to occur and be able to

plan accordingly.”

Tim Whitehouse, Founder of Caprica Online Accountants

“It won’t suit every business model but one way to regulate cash flow is to use invoice discounting, where a third party

‘buys’ your invoice and releases cash based

on its value.”

Sage Accountants cash flow guide

“Before you grant credit, all new customers

should be checked – and re-checked once a

year. Circumstances can change. Don’t grant overly generous credit

terms, either.”

Start-up DonutCash flow guide

“For new products or customers,

be pessimistic — expect problems and

delays, and don’t include a sale in cash

receipts until the customer is ready to

pay the invoice.”

ICAEW Director’s Briefing

“Make sure you keep on top of invoicing.

Invoice quickly, because even if it’s a

day, that’s a day sooner you will be

paid.”

Tracy Gray,Founder of

Button and Bean

“Make it really simple for people to pay you. If

possible, offer a range of payment methods so

your customers can choose how they want

to pay you.”

Intuit Accounting Software

cash flow guide

“Set out your trading terms in writing — if you are providing goods you

would be wise to include a ‘retention’ clause. This

means that the goods do not belong to the

customer until they have settled their bill.”

Simon Cowie, Head of Corporate Services at Hall Morrice Chartered

Accountants

“Try to agree favourable credit terms with suppliers – holding

onto your cash for longer frees up more

working capital.”

Danielle Holmes, Business Services

Supervisor at Armstrong Watson

Accountants.

“Sometimes poor cash flow can mask

something more fundamentally wrong – an unpopular product,

flabby costs or under-performing sales

team. If you see a problem, do something about it before it’s too late.”

Stephen Bence, Chairman of Beauhurst

Business Analysts

“Offering an early payment discount

encourages debtors to pay sooner rather than

later, helping to minimise the risk of

non-payment.”

WorkBooks Accounting Software

cash flow guide

Sources

1. http://bit.ly/CashFlowCaprica

2. http://bit.ly/CashFlowSage

3. http://bit.ly/CashFlowStartupDonut

4. http://bit.ly/CashFlowICAEW

5. http://bit.ly/CashFlowButtonBean

6. http://bit.ly/CashFlowIntuit

7. http://bit.ly/CashFlowHallMorrice

8. http://bit.ly/CashFlowArmstrongWatson

9. http://bit.ly/CashFlowBeauhurst

10.http://bit.ly/CashFlowWorkbooks