Apr 19, 2021 | Blog, Cashflow
Carrying stock for too long means full shelves but an empty bank account. Similarly, if you’re a service provider and are taking forever to bill for your services, consider that work in progress as a form of virtual stock. You can calculate your ‘stock turn’ by taking...
Apr 6, 2021 | Blog, Cashflow
The second cause of poor cashflow relates to when and how money is spent in your business, including your Terms of Trade with suppliers. Do you have spending budgets in place? It’s best practice to prepare an overall business budget every year, usually before the...
Mar 15, 2021 | Blog, Cashflow
There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. Your lockup equals the cash that isn’t in your bank account because it’s either in...
Feb 23, 2021 | Blog, Cashflow
Cash is the life blood of any business. In fact, even profitable businesses can and do fail because of poor cashflow. What’s important is that you understand your key cashflow drivers. Improving cashflow is often all about changing your business processes. Processes...