- Know what bills are due to paid – how much and when, ie a detailed forecast of cash out, at least for each week for the next 12 weeks – update this every week.
- Know what invoices are due to be paid to you – how much and when. Chase any overdue invoices immediately and keep doing so. Create a detailed forecast of cash in, at least for each week for the next 12 weeks – update this every week.
- Subtract cash in from cash out to show you a weekly profile of your cash position. Identify key risks, eg if a customer payment is not received on time.
Keep VAT and PAYE payments in a separate account and resist the temptation to spend from this account.
For more information on how to achieve optimum cash management, please call us.