Cash flow is the total amount of money being into and out of a business. Even the busiest companies can suffer from poor cash flow, which brings with it a variety of additional problems.
The key to maintaining positive cash flow is ensuring that your revenue is always higher than your outgoings. Easier said than done, so we offer a professional cash flow management service to help you achieve it month after month.
The two types of cash flow
When it comes to cash flow, it’s very easy to identify which type applies to your business. If you’re receiving more cash than you pay out, this is positive cash flow. If it’s the other way around, it’s negative cash flow.
Negative cash flow can be caused by a variety of factors. For instance, it could be a temporary scenario, such as your business has recently bought new furniture, devices and software or invested in training, industry events and business travel. If these occurrences are relatively rare, it shouldn’t be long before your cash flow becomes positive again.
If, on the other hand, your outgoings such as commercial rent, software licenses and employee wages are higher than your incomings, you need to reassess the structure of your business model. This is something that we can manage on your behalf, analysing recurring and one-off expenses to identify any costs that can be reduced or removed entirely. Simultaneously, we offer advice and guidance on how to run a more lucrative business and recover any late or missed payments from customers and clients.
The advantages of positive cash flow
It’s pretty obvious that positive cash flow is a good thing, but there are some benefits that you may not have considered:
You won’t run out of funds for rent, essentials and ongoing costs
Your staff can always be paid on time, plus you have the opportunity to reward their performance
You have the freedom to invest into additional activity such as R&D, consultancy and marketing
You won’t face bank fees and interest
You achieve greater control over your company finances and business growth
You have complete peace of mind and none of the stress that comes with negative cash flow
Get in touch
Cash flow management is an essential part of any business, from small start-ups to established companies. To find out how we can help, call our Northern office on 01482 235575 or our London office on 0207 885 0605. Alternatively, you can fill in our contact form and one of our specialists will get back to you right away.