How to build a simple cashflow model and keep it running
Summary
At the start of the new month we update the cashflow model for the receipts and payments that occurred last month and make sure the closing balance in the cashflow model agrees to the reconciled bank balance(s) in the accounting software. The sunlit uplands of a year down the line can take care of themselves but you won’t reach them if you can’t navigate the next three or four months. The areas to look at for improvement are typically: • Profitability – making more money from every sale will improve cashflow • Credit control – improve your debt collection so you receive payments from debtors sooner and stop selling on credit to poor payers • Have one creditors payment run a month – this helps you to set a target for sales and debt collection. Quite simply, we know what to do and we can work with you to get your cashflow model in place very quickly, as well as bringing your bookkeeping up to the standard your business needs. Let’s have a free-of-charge chat about your business – call Michael Austin on 020 7125 0270 or email info@bluedotconsulting.co.uk Ten ways to get paid on time Why two bank accounts are better than one