Small business tips: 10 steps to cashflow heaven
1. Set cashflow targets One way of controlling cashflow is by preparing and maintaining a cashflow forecast. Andrew Johnson, financial controller for telephone conferencing provider Powwownow, advises that this can be updated weekly, to provide an accurate outlook for the next six to 12 months. He says: “Setting targets for the credit controllers is an excellent way to ensure it is given the attention necessary and provides a level of satisfaction and ownership to hit and beat these.” 2. Agree clear payment terms Establishing clear payment terms from the outset is important as Suzannah Nichol, chief executive of construction industry body the National Specialist Construction Council, explains. “If you don’t start off knowing what your payment terms are, it is difficult to know when you are going to get paid, ” she says. “If you don’t know when a payment is overdue, how are you going to manage your cashflow?”…
