How Important is Cash Flow Management?

Cash Flow management is one of the most critical success factors for small businesses. Many successful businesses have ran into problems because the amount of cash coming in doesn’t compare with the amount of expenditure going out. Cash Flow is the life blood of any business. Many companies don’t have a proper handle on their cash flow situation.  Put bluntly, without good cash flow systems you cannot succeed! Many studies show that insufficient capital is one of the main reasons for small business failure, coupled with lack of experience, poor location, poor inventory management and over-investment in fixed assets.

 

How to Improve and Maintain Cash Flow?

Most business owners see growth as the solution to a cash flow management problem. That’s why they often achieve their goal of growing the business only to find they have increased their cash flow problems in the process. Plan for growth and investment so they that there are no surprise later on. Here are 5 practical areas to consider in order to better manage cash flow for the growing business.

 

  1. Proactive Collecting of Receivables
  2. Tighten Up Credit Requirements
  3. Increase Sales beyond current levels
  4. Pricing Discounts for Early Payment
  5. Securing Short-Term Loans

 

Contact Avid Partners today to see how we can assist your business through establishing an effective structured cashflow system. Arrange a free consultation with us to talk through the specific aspects of your business and we will tailor a package to match your needs.  You can phone us on 01 4286900, email us at advice@avidpartners.ie  or alternatively you can fill out the form below.

 

  1. (required)
  2. (required)
  3. (valid email required)
  4. Captcha
 

cforms contact form by delicious:days

Scenarios:

Many businesses are still having difficulty raising money to grow their companies. When seeking finance be as diverse in your product categories' as you can so that lenders can see you're not exposed to a high risk investment category. Show clearly that you are in a position to repay any borrowings and demonstrate what the capital will be used for (new equipment, materials, marketing, premises, etc). The more detail you can include the clearer it will be for the lending's committees to judge your application favourably.
Yes. The vast majority of governmental construction and building work has to go through a formal tending process with the most suitable company selected as the preferred bidder. These contracts can be small and large in scale and bidders usually have to have a track record of work in the specific area and be of sound financial standing. You can keep track of such available work at www.etenders.gov.ie. There can be a lot of hoops to jump through but if the project is valuable to your organisation and you have the time to make a quality submission then apply. You may be the best fit for the job.
Many industries undoubtedly took a battering during the downturn and many had to cut costs and staff just to survive. Now that the green shoots are starting to emerge and the sector will likely grow this year many of our clients have revert back to an expansion mentality with an emphasis on growing their business rather than cutting costs. The companies that have come through the tough times now see opportunities on the horizon with pent up demand and increasing disposable income . Also a reduction in competition will give existing operators a head start in the sector before the inevitable new entrants as the market picks up.
  • Accounting Retail Testimonial Excel Image
  • Accounting Retail Testimonial Recharge
  • Accounting Financial Testimonial EBS
  • Accounting E-Commerce Testimonial CDRS
  • Transportation Accounting Testimonial Image
  • Bank of Ireland Accounting Testimonial Picture
  • Retail Accounting Testimonial Celands
  • Accounting Testimonial Porter & Bannon
  • Accounting Testimonial The Square Bar
  • Accounting Technology Cottege Surgery
  • Hospitality Accounting Stillorgan Cycles
  • Hotel Accounting O Loughlins Hotel Testimonial
register for upcoming events

Register for upcoming events

  1. (required)
  2. (valid email required)
  3. Captcha
 

cforms contact form by delicious:days