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Wednesday, 21 July 2010

Cash is King

Cash really is central to every business, of every type.
The only reason that businesses go bust is that they run out of cash.
Even a 'profitable' business can go under if it runs out of cash, through over trading.
Strangely, a business making a loss can continue to trade as long as it has enough cash.

Therefore, your cash health, both now and in the future, determines your success.

You should ensure that invoices are issued quickly, and that cash is collected from your customers A.S.A.P.

Keep cash in your business for as long as possible without putting any strain on your key suppliers.
Stock and unbilled work in progress, ties up your cash keep them at the lowest level to run your business effectively.


 

'Cash flow implications of decisions'
make sure that everyone in the business is taking decisions based on 'Cash Management'.

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