cashflow projection

Cashflow is the very lifeblood of a business. It has to be remembered that poor management of cash flow can lead to business failure.

Businesses can implement the following measures to manage cash flow effectively:

  • Set a credit management policy (e.g. make a credit check on each new customer).
  • Set a minimum order level for credit sales.
  • Set a credit limit for each new customer.
  • Perform regular credit checks on your main customers.
  • Use fully documented terms of trade.
  • Ensure terms of trade specify credit terms.
  • Give each customer a unique account number.
  • Specify the most appropriate payment method.
  • Chase overdue payments within a week of them being due.

Remember cash flow is king for small businesses and the self employed.


More Information

Declan Whelan
Founder (ACCA) 
ADW Accountants and Business Advisers
(087) 2997978