TOP TIPS TO DRIVE FINANCIAL INCLUSION AND BETTER CASH MANAGEMENT FOR SMES
CHEQUING OUT
Cash flow management is crucial to ensure that small businesses – often operating within tight margins – can run effectively and efficiently . From the basics , to tops tips on how you can improve , Ralph Rogge , CEO and Founder , Crezco , highlights everything you need to know about cash flow management for your small business .
Cash is king ! Cash is more valuable than profit , revenue , stock or receivables and remains critical for any business . It ’ s an unavoidable necessity to pay for staff and suppliers and provides you with the necessary confidence to invest further in your business . Unfortunately , it is also one of the biggest challenges companies face . A recent survey by Capify found that a majority ( 52 %) of UK small business owners are worried about their company ’ s cash flow over the next 12 months .
Three columns to cash
There are three key columns affecting cash flow : cash coming in ( accounts receivable ), cash going out ( accounts payable ) and access to cash ( equity or debt raise ). If your business is spending more than it makes , and does not have access to further liquidity , then things are going to dry up quickly .
Seemingly it should be straightforward to avoid cash flow issues . Like trying to lose weight , just assure you burn more calories than you intake : spend less than you make . Nonetheless , it isn ’ t that simple and so many great businesses with happy customers , especially smaller enterprises , suffer unnecessarily .
Five cash flow management tips
There are easy steps that businesses can take to combat cash flow issues . Here are the five we consider important .
1 . Make getting paid easy : It is a truth universally acknowledged , that the propensity to be paid is inextricably linked to the convenience of payment . Inconvenient payment methods , such as cash and bank transfers , are subject to human inertia and human error . Few www . intelligentfin . tech
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