Working capital requirement v. cashflow. How to avoid the gap!

Want to learn more about working capital? ‘Working Capital’ and ‘Cash flow’ may sound similar to some, but understanding the difference can have a bearing on business success, especially in a changing environment e.g. growth or downturn. Working Capital Requirement – What is it? In simple terms working capital requirement is the amount of funds
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Maximising Sales, Profit and Cash

Want more sales for your business? Sales, profit and cash are the key issues to focus on in business financial management.  If you can get these three working right,  you’re well on your way to building a sustainable business with capacity to grow. Most people focus on sales to begin.  I’d like to start with
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Making your cash … FLOW!

Want better cash flow in your business? You’ve probably heard the saying ‘Cash is King’ in the past. Cash is not King anymore… ‘Cash is now the whole Royal Family!’ We are hearing about businesses big and small struggling with cash flow and business insolvency on the rise. Business has had the benefit of good
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Trimming costs can sometimes add better profit than selling more

Looking for better cost management ways for your business? Business owners/managers will often place more focus on selling than on buying, and that’s natural.  You may be surprised though, if you can spend a little time looking at your costs, at how much you can improve your profit.   A small reduction in costs can

Why profitable businesses can go bust!

Want to know how to avoid business failure? If a business is selling plenty of products or services and buying labour and parts at the right price, how is it possible for it to go bust? Cash is more often than not the reason why so many businesses fail.  Profits can’t be spent until they

Crystal Ball Gazing

Want better cash flow in your business? Don’t panic – be happy! When times are good in business, some business owners may not worry with a budget.  They may think “Good sales figures can compensate for inefficiencies elsewhere in the business, such as cash wastage from overspending, or lack of cost management”.   But operating
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How to speed up payments from customers

Want to speed up payments from customers? Some customers will use you as a bank if they can. Better to use your goods and/or services and not pay until they have to. Here are some suggestions to speed up payment. The Quick & Easy way to See Who Owes What Once you have sent out
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The Key to a good Customer Payments Process

Like to get customers to pay quicker? Some of the key elements of a good Customer Payments Process Management Once you understand the impact of poor collections on cash flow, it’s easy to see why it needs to be proactively managed, rather than handled on an ‘ad hoc’ basis.  It really is worthwhile to have
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How to avoid bad debts

Want to know how to avoid bad debts in your business? How well you handle invoicing can make or break your business.  Every business has different methods and issues … so let’s look at some of the key factors in running a successful ‘Accounts Receivable’ process in a typical business.  By typical business, I mean
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Seven Steps to better cash-flow management

Want better cash flow for your business? Budget A budget is the best place to start managing cash flow.  If you feel uncertain about how you’ll make the sales, don’t worry, you can start with what you do know, which is your overheads.   Note down all of your fixed overheads for each month.  If
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