Do you know your company’s cash-flow?
Cash-flow; it’s something many businesses often don’t think
about – until they need to. However managing your cash flow
efficiently is a key part of operating a successful business.
Getting on top of your cash-flow projections early is not only
good practice but can be a key strategy in helping you grow your
Below are a few pointers to help you identify your cash-flow
- Plan financial year to financial year
The financial year runs from April every year. Within this there
are key deadlines for tax and VAT payments. Make sure you know when
these are and what you need to pay.
- Record loans and grants
If you have money coming in from loans or grants it is important to
log this – these are often big sums. Don’t forget to add repayments
into your plan.
- Identify key out-goings
Do you have staff? When is the payroll deadline each month? What
are your payroll costs? If you hire subcontractors or temporary
staff remember to factor this in.
- Get paid
Make sure you know how much you should be getting paid by clients,
and by when. Invoice clearly, early, and often. This is especially
important if you’re concerned about late payments – there’s some
useful guidance on late payments available at gov.uk.
- Keep a spreadsheet
Business Wales have
produced a helpful spreadsheet template for businesses to use. Add
your payments in and out on a month-by-month basis across the
financial year – it will then calculate your cash-flow. If you’d
like a copy email firstname.lastname@example.org
- Concerns? Seek advice
If you think you’ve spotted a cash-flow hole – seek advice. The
earlier you identify a potential issue, the easier it is to
resolve. You may be able to get funding, or payment holidays –
especially if you can show healthy cash-flow throughout the rest of
Once you have visibility of your cash-flow it is much easier to
understand how your business is performing and any areas that need
attention. However, getting extra help with your cash-flow doesn’t
mean your finances are in trouble.
Whether you’re a seasonal business or your clients are just slow
to invoice you, it’s normal for a business’ cash-flow to fluctuate
throughout the financial year.
Plus if you are looking to invest in a potential opportunity for
growth boosting your cash-flow can give your business the breathing
space it needs. In which case having a clear view of your annual
projections will make securing finance from lenders much
Therefore remember the importance of good cash-flow management.
It is the lifeblood of your business and can give you the platform
you need to effectively manage and develop your company’s
Finance Wales can provide business micro loans from £1,000 - £50,000
to support a range of business needs. Businesses trading for
more than two years can apply for loans up to £5,000 using a
streamlined online application process.
To discuss your funding options email us