Tips to help you manage cash-flow in your business
1. Maintain and monitor your Cashflow Forecast The Cashflow Forecast is not only a useful document when you are starting out in business or looking for a loan, this should be reviewed monthly to compare your actual cashflow position against your projections. Please contact Anu Change for your Cashflow Forecast Template.
2. Monitor Your Bank Account Take advantage of online banking for small businesses to easily monitor receipts and payments to or from your business bank account. Consider opening a separate Bank account for your fixed outgoings (e.g. Rent, Rates, Loan Repayments, etc.) so you know exactly how much you need to put aside each week to cover those payments.
3. Keep Revenue payments up to date It is really important to submit your returns for VAT, PAYE, PRSI, etc. to Revenue on time – usually bi-monthly or quarterly. If you fall behind with Revenue, you may have to accept their credit terms and that could put more pressure on cash flow than if you had kept your payments up to date
4. Managing your Debtors Always agree to clear payment terms in advance with anyone that owes you money and make sure to check that the payment has arrived on time. Make it as easy as possible for your customers to pay you. Facilitating online payment straight to your business bank account or receiving payment by credit card are the ways most people prefer. Always ask for a deposit in situations where you must incur costs in order to fulfill a contract.