Knowledge is power

All businesses are thinking about cashflow just now.

Whether it’s a large organisation with fourteen different scenarios per department, or a small owner-operated business, chances are, you’ve paid more attention to cashflow in the last month then you probably have in the last year.

With good reason - we’re all trying to make decisions with the sand shifting beneath our feet and it’s really unsettling. We’re all feeling a little out of control.

And knowledge really is power

Is your bookkeeping is in good order? Do you know who has and hasn’t paid you, how much you have in the bank and what invoices are paid and are not? Do you know how much you owe on credit cards and what your PAYE bill will be. When is your Corporation tax due? Can you pay it?

How quickly do your customers normally pay? Has that changed since they’ve been working from home? How do you get in touch with them? When did you last send a statement? Do you know what your clients can commit to? And when they can pay for it? Do you know what their accounts payable person is called? (That human connection being invaluable right now).

Do you know what your payment terms are with your suppliers? Can you afford to pay them? Have you told them? Whether you are paying early or late - it’s crucial you communicate with them now. Pay early and communicate that they are valued suppliers. If you need pay late, you need to let them know so that they too can make decisions. But if you tell them you’re paying late, keep your promises.

With uncertainty everywhere, now is the time to get a grip

I mean, now is the time to get a grip on the information you have at your fingertips.

Spend some time investing in getting your information systems right. And when it comes to your finances - your boring bookkeeping is crucial.

Junk In, Junk Out

We can plug in cashflow forecasting software, we can automate credit card payments or set up direct debit facilities. We can automate your data entry, but the bottom line is “Junk in, Junk out”.

If you need some help getting on top of your finances, if you need to sort out your Xero, if you want to learn about automating faster payments or if you want someone to get to know the names of the people in your customers accounts teams, then get in touch.