- Do you want to control your cash flow?
Cash flow problems can impact a business from the top down. The business owner may need to quickly liquidate assets to plug a hole, sales people spend their time chasing customers for money rather than new sales, admin staff field calls from increasingly hostile suppliers and HMRC may turn up at the door refusing to leave without a cheque.
The above are scenarios with which Finance and Control is familiar and knows how to avoid. By proper planning, taking into account the business' seasonality, timing of major reciepts and payments and other factors most short falls are bridgeable. If they are not, the bank is far more amenable to extend credit where a detailed forecast - P&L, Balance Sheet and Cash Flow - has been prepared.
It is not enough to prepare the cash flow forecast, it needs to be adhered to and requires a continuous focus on debtor collection.