With over 40 years of combined experience we can advise on the systems, controls and procedures you should adopt to maximise your cash flow.
Cash flow and forecasting can be scary, but we are happy to provide you with cash flow templates tailored to your business so you can use and understand how this powerful planning tool can be used to the greatest effect.
It will enable you to see the effects on your business your standard terms will have, enabling you to make the best decisions in terms of spending and planning for the future, as more cash into your business more quickly, means more cash for you!
Nine reasons to keep your cash flow up to date:
1. Save time, gain power
Reduce the amount of time you spend looking at numerous spreadsheets, sales invoices and receipts, or waiting to hear back from your bookkeeper/accountant to find out if something is financially viable. Keeping your numbers up to date and interpreting the results means you have the power to see what is happening with your finances and gives you the confidence to make big decisions.
2. Know your options
Cash flow forecasting means you can play with the numbers to create and visualise any business scenarios you think may happen in the future, good or bad, so you can see how a change in prices, new contracts, staffing levels, moving premises or a loan will affect your financial future, so becomes a vital part of sussing of the decision-making process.
3. Reduce risk
With accurate forecasting you can see the impact of a ‘risky’ decision on your business and therefore calculate those risks and plan for them, knowing their potential affects.
4. Plan for growth
Cash flow forecasting will help you understand different options as your business grows, and will enable you to see the long-term effects of each step of the process, balancing out for you the speculation and accumulation you will inevitably have to face.
5. Spotlight on your relationship management
Cash flow will help you understand the importance of relationship management with both your clients and suppliers. You can easily identify suppliers and clients that are critical to your cash flow, and develop those relationships. Or, conversely, identify client or suppliers that are detrimental to cash flow and look to replace them.
6. Spot potential short-falls
This is particularly important for small business who don’t have any financial reserves. Spotting potential problems and understanding the consequences will reduce the impact they will have on your business as you will be in a better position to deal with them if the worst happens.
7. Play with the numbers
You can have a bit of fun with your cash flow, increasing your revenue by just 10% and see what the end of year figure would be, adding the rent for a bigger office, a new car or planning for a lavish Christmas party. Whatever your goals, adding them into your cash flow is a solid start to making these goals actually become reality.
As business owners ourselves we are available as a sounding board and source of advice, setting up the systems and procedures we have adopted ourselves to improve cash flow in your business. What better advocate of systems than if we are willing to implement them ourselves?
Margin reviews
Financial stability – This is the end goal for all of us. It is stuff of dreams and the reason many of us choose to go into business for ourselves. Put into layman’s terms, a margin is a degree of money, usually a percentage, that assures lenders of our capability of repaying any borrowed cash.
It is essential when applying for loans that you are able to make repayments within a timely manner. It is also essential that you are able to convince the lender that this is the case. Wagner Mason Accountants will review your finances taking into account all outgoings and financial commitments in the short and long term and advise you on your viable margins. It is best to be aware of your capabilities and to what you are committing your company finances when looking for funding.
Wagner Mason Accountants can advise you of the tools at your disposal with which you can create a clear view of your financial situation and plan the future profitability of your company.
Proper planning will take your business from unprofitable and cash hungry to a viable and important contribution in your field of expertise.
