Cashflow

You’ve probably heard the phrase “cash is king”. But why is cash king?

Cash is like oxygen to our business. If cash balances get too low, our business will find it difficult to breathe. Breathing difficulties bring pain and unwanted outcomes. Therefore we have to make sure we have enough in our tank to survive.

We need cash to be able to pay suppliers on time. Paying suppliers on time should mean that the supply chain is smooth and services form them needed for your business continues to flow. We need cash to pay our workforce on time. A happy workforce should give you a good level of output from them. Cash is also needed to keep compliance liabilities up to date and taxes paid on time.

With all this in mind, it’s therefore critical to plot your bank balance, expected payments from customers and your planned outgoings so that can see if you have the cash needed at the right points in time. If you plot this and see a potential issue in the future, you will be able to plan this today. That might mean some debt chasing from customers or a sales push. It could mean needing to find a short-term funding source - but the ticker you see it to react to, the better chance you have of success.

Finance Box take the live data from your accounts and plot a weekly based cashflow. We know the due dates, the taxes, the Direct Debits etc - and we know your clients don't always pay on time. We plot this into a weekly report and use this to help you agree your weekly payment runs.

We also have access to several partners offering funding that we could introduce you to if there was an ongoing requirement.

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