As a business, your main aim is always to come out with a positive cash flow and continue to make profit year upon year. Although it is impossible to predict exactly what will happen, there are several ways that you can plan ahead and manage your cash flow effectively.
Coleman & Co will help control and manage your cash flow at all times, providing every company with financial reports and predicted income and expenses for the months you need it. With our service, you will always stay on top of what profits your company make.
Create A Forecast
The first step to effectively managing your cash flow is to create a rough forecast of exactly what you expect to spend and sell for the next few months. This will give you an estimate of how much you expect to make and whether your overall profit at the end of each month will be positive or negative.
If your expenditure ends up being more than your revenue, you could be in a bit of trouble – but at least you can see the problem in advance and fix it before it happens. A luxury you would not have without forecasting for your business.
Set Yourself Targets
Every business should have goals that they expect and strive to achieve and this is a big part of managing your cashflow. If you have created a forecast but feel you can do better than what is predicted, do something about it!
Organise your staff and make sure that you set yourself realistic targets that are achievable for your business, this way staff are motivated to reach it and you can exceed your targets. Planning month by month on how much you want to be making and comparing it to how much you actually make will keep you in control of your cash flow.
Monitor It Closely
This may seem like an obvious thing to do, but having someone designated to monitoring your cash flow or outsourcing it to accountants is the best way to make sure there are no errors. If you have unexpected payments being made or the right amount of money is not coming in, even a small amount can make a big difference.
Another method of doing this is through computerised accounting systems, which will help keep all your data in one place. This means you can keep track of all your cash flow in one spot and you will be using systems that never make errors.
Manage Invoices Correctly
If your clients are paying you on a monthly basis, then you should be constantly checking that each payment goes through smoothly and that you’re receiving the right amount of money every month.
If you decide that this isn’t a big deal for your company and you start to let customers slip through your net, then revenue will start to drop dramatically. By keeping track of who is paying and who is not, you can keep your costs low and make sure they are only given the service they pay for.
Monitoring this can sometimes be difficult but with the right help you can stay on top easily. This could also help you raise the revenue of your company as if you see that a customer has not been paying the correct money, it gives you the opportunity to talk to them and make sure they do pay the correct amount of money in the future.
The key to big profits is saving money. Make sure that when you are spending money, you are not wasting it on products you don’t need and that you buy your resources and supplies in bulk to save money. Budgeting will help you do this and ensuring you do not overspend in each department of your business means that profits will begin to rise.
Even if your revenue is through the roof, if you fail to save money when purchasing new products then your business will find it difficult to succeed. Coleman & Co will provide you with the systems and accountants to effectively manage your cashflow and help your business make profit on a consistent basis.
Whenever you require help monitoring your cash flow, Coleman & Co are the perfect team to call. Having years of experience dealing with many businesses across every industry, we know what it takes to manage cash flow correctly. Contact us today on 028 9266 3599 for more information.