The scariest things that can happen to your cash flow

During the month of October, as we near Halloween we often associate this time with ghosts, goblins and ghoulish stories; however, in the world of accountancy the real nightmares don’t involve haunted houses, they involve numbers. Lurking within financial statements are frightening tales of poor cash flow management that can keep business owners up at night.

So how can we ensure that we face these hellish cash flow worries head on? The Ellis & Co team have put together our scariest cash flow nightmares and how to overcome them!

Frightful financing

Business financing can seem like a maze of horrors for business owners. There are countless options out there, some more suitable for certain businesses than others, so it may appear daunting to begin the process.

Whilst research is key to identifying the right finance for your business and its requirements, there are experts out there that can support you in this process. Our wonderful team here at Ellis & Co has helped many businesses to seek out the right finance to support in periods of growth and expansion.

Being left in the dark

Not knowing or understanding your financial position, both on a month-to-month basis and annually, is a critical error for many businesses. Often this will mean that your cash flow is poor, hindering growth and, in worst case scenarios, even leading to the failure of a business.

Making sure that you know where your cash flow is throughout the month and carrying out forecasts for the months ahead will ensure that you can put in place necessary measures when large expenditures come your way, on indeed capitalise on any influxes in cash flow.

Not facing your fears

Late payment is one of the biggest contributors to poor cash flow. Whilst we understand that the prospect of chasing customers for payment can be scary, it is a crucial component to any effective credit control function.

This is customer facing function which should be approached in the same manner as any other customer focused function. Polite and friendly reminders will, the majority of the time, lead to swifter payment (not to mention a much healthier cash flow).

Ultimately, no matter how scary you may find the prospect of certain accountancy tasks, seeking the support of an experienced and qualified chartered accountant will always ease the time-consuming burden on you as a business owner or manager. This leaves you free to focus on running and growing your business without the frightening potential of poor cash flow.

Speak to the team at Ellis & Co today to find out more about how we can support your business.