Is your cash flow in the green? If not, it could be a sign of bigger problems and a warning that you need cash flow management.
Managing cash flow is a notoriously tricky part of running a small business, but it’s also one of the most important. Ignore your money and your business will suffer, it’s as simple (and gloomy) as that. Luckily, taking matters into your own hands doesn’t have to be difficult, and with the help of professional cash flow management services, you can give your business a clean bill of financial health without any stress.
Of course, not every business is in need of cash flow help. To help you understand more about whether you could benefit, we’ve put together some of the top signs that it’s time to give cash flow management the green light.
1. You Can’t Cover Your Expenses
The most obvious sign that your cash flow needs professional attention is that your expenses exceed your income. When the money moving into your business can’t keep up with the money moving out, you’re in financial trouble.
Good cash flow management involves an understanding of your expenses, from your monthly payroll to supplier invoices. It also requires knowledge of your working capital – how much money you need in the bank to cover your day-to-day business costs – and actions to ensure you have enough revenue to finance your business activities.
When you all too frequently find you’re pulling funds from your personal account or taking on debt, it’s time to look into professional cash flow management services.
2. You’re Missing Payments
Struggling to deal with a stack of unpaid bills? You’re not alone. Even when your business has the money to cover your expenses, keeping up with deadlines and different payment accounts can be a time-consuming and confusing process.
If you’re consistently missing deadlines or being chased up by suppliers, it’s a clear sign that you’ll benefit from cash flow management.
With a team of professionals on your side, you can hand over the task of paying bills and tracking expenses to our qualified bookkeepers. We’ll stay on top of your payments for you, leading to:
- An improved credit score
- Better supplier relationships
- Improved supply chain management
- Reduced fines and interest from missing deadlines
Don’t let missed payments cost your business when it’s so simple to call in the help of professional bookkeepers.
3. You Don’t Understand Why You Don’t Have Money
When you’re working hard but not seeing the profits you expect, it’s incredibly frustrating. You’re putting the hours in but the money seems to be going straight down the drain and you don’t know why. So, what can you do?
With cash flow management, you’ll work with bookkeepers to identify all of your expenses. These include fixed costs (those that stay the same each month) and variable costs (those that change depending on how much you sell). This will give you a much clearer picture of your business’s financial health, pinpointing exactly how much you’re spending each month and on what.
We can also help you identify areas of waste. For example, if you’ve been paying for a subscription to software you no longer use, we’ll raise a red flag next to this expense. You can then cancel the subscription, reducing your expenses and increasing those all-important profits.
4. You Can’t Plan Ahead
Strong finances lay out clear paving stones towards the future of your business. When you don’t have a strong grasp on your cash flow, though, you might not understand your financial health and struggle to make decisions that are financially beneficial for your business.
For example, let’s say an opportunity arises to expand your business with a second premise. If you don’t understand your cash flow, you won’t know if you have the necessary income needed to undertake this new venture or how the additional expenses would impact your budget. The chance slips away and your business remains stagnant.
With professional cash flow management services, this won’t happen. You’ll have a team that fully understands your financial health and can explain it clearly in relation to your goals, helping you make informed decisions that benefit your business.
5. You Have to Chase Invoices to Meet Bills
It’s not uncommon for small businesses to cover their expenses with their income. However, if you’re constantly walking a fine line between red and green in your bank account, it’s a sign that your cash flow is in poor health. It’s also incredibly stressful; no one wants to chase invoices because they have a bill coming out that they can’t pay!
If you’re constantly scrambling to cover your costs, it’s time for cash flow management services. We can help you plan ahead and create budgets that work around your expenses. We’ll also do all of the invoice chasing for you, ensuring your income is received on time, every time.
6. You Don’t Know How to Save Money
Whether your fixed costs are increasing or your sales have declined, there are times when a business needs to cut back in order to survive. Without a good grasp of your cash flow, though, this can be tricky. You don’t know your overheads or the areas where you might be able to save, making this another lengthy task to add to your to-do list when there are other areas of your business that need your attention.
Our team don’t promise to save you money, but we can help. When you need to cut back, we’ll sit down and look at your current financial situation, identifying any costs we think could be reduced. We can also spot fluctuations in your cash flow early to prevent any long-term financial damage, giving your business the best chance of survival when times are tough.
Take Control With Cash Flow Management Services
At Angel Bookkeeping & Payroll Services, we help businesses across Sussex to get on top of their finances. This includes our comprehensive cash flow management services. When you’re struggling to understand your money, we can help you track your expenses, monitor your income, and gain a better understanding of your overall financial health.
Ready to take control of your cash flow? Get in touch to learn more about our cash flow management services in Sussex.