Don’t be a victim of the expanding economy

After a tough 18/24 months all the signs are pointing to an improving economy.

Now is the time to be very cautious.

Businesses often need to meet the demands of an increasing order book with increases in stock, additional staff or other resources.  Only the lucky few businesss will increase sales with little or no increase in costs.  So as the business generates higher sales & more cash, it also needs more cash to pay for the resources.

A simple and highly effective tool for any business owner is a cash flow forecast.  Simply explained, the cash flow will record cash coming into the business and costs due to be paid out by a business.  At the very least, the cash flow needs to look a month ahead.  In certain business, such as manufacturers or builders daily or weekly cash flow forecasts will certainly be a better solution.

We have plenty of experience of managing cash and implenting cash flow reports, so if you don’t currently actively manage your company’s cash and you’re unsure where to start, please get in touch.

Don’t let your company be a victim of the expanding economy.

Martin Bown ACMA

info@mymanagementaccountant.co.uk

www.mymanagementaccountant.co.uk

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