Improve & manage your business' cash flow
Keeping a record of the money flowing in and out of your business is crucial for managing your business finances.
It's also a good idea to think about what you can do to improve or maintain your cash flow.
Keep track of your cash flow
It can sometimes be hard to keep track of everything – the bills you pay, payments from customers, supply costs and so on.
A cash flow statement is an important tool that can help you keep track of your business finances. It lists all your incoming and outgoing cash items for the next 12 months, so you can plan ahead and make sure you'll have enough money to cover your expenses.
Improve your cash flow
There are simple ways you can improve your cash flow, such as:
- making sure you send a correctly formatted invoice at the time of purchase
- following up on outstanding customer payments as soon as you can
- reducing your expenses – you could try finding cheaper suppliers or consolidating your debts for a better rate
- rearranging your expenses – options include organising a periodic payment plan for larger expenses.
To cope with changes in your cash flow, you could also consider taking out a business loan. Before you do, it's a good idea to first assess your financial needs.
Need more tips?
- Find out more ways you can improve your financial position.
- For invoicing and payment tips, visit Payments and invoicing.
- Your inventory turnover may affect your cash flow. Read our Managing your inventory for more information, including managing inventory costs and how to calculate your inventory turnover.
- Talk to your business adviser or accountant to see if they can suggest other ways of improving your cash flow. Search Advisory Services to find a business adviser near you.