Managing your cashflow is vital for business survival and growth. To run your business effectively, you need to balance the timing and amount of your costs with those of your income. See the following tips to help you manage money more effectively:
- keep your cashflow forecast up to date, adjusting it on a regular basis so you know exactly how much cash is coming into and going out of your business - see financial and management accounts
- ask your customers to pay sooner - see invoicing and payment terms
- chase debts promptly and firmly - see ensure customers pay you on time
- use factoring - see factoring and invoice discounting
- ask for extended credit terms from suppliers - see negotiate the right deal with suppliers
- order less stock but more often - see stock control and inventory and innovation in manufacturing
- increase your sales and profitability - see strategies to improve sales and profitability
For further information see cashflow management.
Watch Invest NI's tutorial on managing cashflow below.