When I talk to my clients one of the recurring themes is how to manage cash flow.
Whether they are a newly formed business or a well-established one, the last few years have presented some real challenges.
Managing cash flow
The old adage that is ‘cash is king’, still holds true today. Businesses need to make sure they have the money set aside each month to pay the PAYE and each quarter to pay the VAT. We are finding that HMRC are proving more difficult to negotiate time to pay arrangements with, especially if other arrangements are already in place.
To manage cash flow, up to date information on customer balances is vital and then a good credit control policy. It is very common for businesses to pay their suppliers on the 30 days term. However, they themselves aren’t being paid for closer to 60 days and even up to 90 days. This has a real negative impact on cash.
Here’s an interesting article from The Guardian “How I kept a lid on cash flow when my business took off”
What is clear from the conversations we have is the need for clear, accurate and easy to understand information from which they can make informed decisions.
Quite often clients aren’t of a size that warrants the need for a full time bookkeeper/accountant and the solution is to therefore outsource this type of work.
Ten reasons to get help with your day-to-day accounting:
- You haven’t got time at the end of the day/week, then it gets left and the amount of work and time involved becomes too much
- It’s not why you went into business, you would rather be busy doing what they are good at, so why not leave the accounts work to a professional?
- The size of your business may not warrant a full time bookkeeper
- Outsourced bookkeepers offer flexibility by fitting in with your work arrangements, working remotely or on-site, and the availability of holidays and sick leave cover
- Add to your team – our team become part of your team when visiting your office; quickly understanding what your business is all about and offer their thoughts in discussions
- You get regular management information to aid your decision making for your business
- Get an impartial opinion – we can meet to discuss and go through the accounting information and challenge the results
- Tailored accounts information to meet your needs, ensuring the information supplied is totally relevant to you
- It provides us with reliable up to date accounts information which means we can identify tax planning opportunities to save your money
- And it helps streamline the year end accounts procedure and can reduce your costs of the year end compliance work.
Bookkeepers are so much more than just ‘number crunchers’. They offer you the added value of their expertise, giving a fresh pair of eyes to your business health (and wealth) and help you manage cash flow and achieve your financial ambitions.