Step 1: Underpinning your Recovery Plan is the implementation of the best practice procedures. Maintain a disciplined approach to working capital management, focusing on increasing profitability and improving efficiency.


Step 2: Complete a Financial Health Check
Identify and check key indicators such as;
• cash balance
• value of daily sales
• value of orders
• debtors balance
• Analysis of your financial statements regularly will help you make better informed decisions. It also helps detect and respond to any adverse movements and to see opportunities.
• Analyse your liquidity, daily if necessary
• Understand the business solvency position, to reduce business stress.


Step 3: Undertake a situation analysis. This allows you to take an objective look at your Business.

 

 5 Practical Tips to keep your cashflow up-to-date
1.Connect all your Business accounts in a system such as XERO to have the full picture. EG Bank Accounts, Loans, and Credit cards.
2. Reconcile frequently. Check your transactions (incoming/outgoing) against the records and statements to ensure they are correct.
3. Manage expenses. It is important to stay on top of Business expenditure. Correctly account for all expenses, including those you have paid personally and personal expenses paid for from business accounts.
4. Record and monitor due payment dates. Keep track of your payments. When an invoice won't be paid by the due date add an expected payment date. This gives a more accurate record of when money is scheduled to come out of your account.
5. For further advice contact Blackburn Accounting.

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