Critical numbers – Your lock up days

Critical numbers – Your lock up days

Your lock up days is the number of days it takes to convert your debtors, stock and work in progress into cash. The higher your lock up days, the more cash is needed in the business (either from you or the bank), and the higher the risk of losing that cash. Worse,...
2020 is only 3 months away – What’s in the forecast?

2020 is only 3 months away – What’s in the forecast?

When we set out on a fishing trip or hike, we always check the weather forecast. It’s no different in business. The forecast tells us if there’s bad weather (poor cashflow) in store based on the direction we’re heading. Your forecast will tell you: Whether you have...
Cash is NOT equal to profit

Cash is NOT equal to profit

Have you ever been in a meeting with your accountant, hearing how much profit you’ve made and being congratulated on a lift in performance, but in the back of your mind you’re wondering where the cash is and how you’re going to make payroll tomorrow? Don’t worry,...