You don’t have to spend long running a business before you realise just how important cashflow management is: the balance between money coming into your company and the money going out on a weekly or monthly basis.
There’s not much in commerce more likely to give you sleepless nights if it goes awry than cashflow, as it’s hard to turn around quickly. But by taking a considered approach, understanding the data and anticipating problems and opportunities early, you can regain and retain control of this dynamic – even when events go against you.
Of course, it has been a particularly difficult two years brought on by the pandemic. Uncertainty has reigned, along with major disruptions to trade, demand and staffing – albeit tempered to some extent by government support.
And just as we begin to learn to live with COVID-19 (and support is withdrawn), other challenges emerge: like rising inflation and global security concerns.
In a continuingly uncertain world, here are some practical tips to help you understand, manage and then improve your cashflow so you are in the best condition possible to face the future.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.