Working the numbers

Managing your finances successfully will ensure you never run out of cash and will help you take advantage of growth opportunities.

Find out more about:

• Let the cash flow in: If you want to stay in business you need money coming through the door. Learning to manage your cash flow is some of the most important information you will need to run a business.
• Questions to ask when you are faced with bad debt: You’re doing your best work and yet getting your invoices paid is like drawing blood. How can you bring about change? The answer may lie with you.
• Not worth the risk: If you’re not insured against interruptions to your business, in the event of disaster you may be forced into bankruptcy – simply because you put insurance into the ‘too hard basket’.
• Mind the gap: If you don’t understand the impact of a cash flow gap (the time between cash going out and coming in) you can turn a profitable job or project into a financial mess.
• Three ways to bridge the cash gap: A critical issue for a business is money flowing out faster than it flows in. Here are three practical steps you can take to bridge the cash gap.
• Is it deductible?: Staying on top of what is and isn’t tax deductible will help you avoid costly accounting and legal bills and, of course, a large tax bill.
• Maintaining a healthy cash flow: In tough economic times, many small businesses struggle to manage their cash flow adequately. A ‘stress test’ of the business and risk management strategies will ensure the business survives the bumps.
• Don’t give it all away: In the pursuit of new business, it’s all too easy to get starry-eyed at the prospect of securing a new client and end up giving things away. Generosity is fine, but it should be carefully considered and planned.