Cash flow is key to a small business but there’s only so much that you can do on your own to make the most of this crucial asset. Keeping records, monitoring progress, ensuring that invoices are met and that money is in the right place at the right time all contribute to positive cash flow. However, with the help of an accountant – there’s a lot more that you can do with your cash flow.
In the hands of the experts
Starting your own business – and even being successful at it – doesn’t make you an expert at cash flow. It’s the central role of a professional, such as an accountant, to be able to understand what’s happening with cash flow, to look for warning signs and identify indicators of progress and problems. It’s not just in balancing of expenditure and accounts receivable where you benefit from advanced expertise but also tailoring the benefits of strong cash flow to work for an individual business.
A fresh perspective
For business owners, cash flow often means taking steps to avoid problems such as missing payments or being unable to buy stock or raw ingredients because there simply isn’t the resource to do so. That can be quite a limiting perspective to have, especially as one of the key elements of good cash flow management is also looking at how cash flow decisions can drive positive change and influence strategy by creating reserves of cash at the right time. The right professional support should enable you to optimise your cash flow management, to ensure cash flow can generate – and keep up with – growth and to use it to create new opportunities.
If you have more ambitions for your business than just meeting its expenditure and outgoings then professional support can make this happen. Whether you’re looking to find new ways of tax funding or project financing, cash flow – in the right hands – can open up all kinds of doors. From maximising receipts from customers, to improving credit rating and making the right decisions about capital expenditure, there are many ways in which professional cashflow advice can support wider business objectives.
One of the most important ways in which your cash flow is handled by a professional is when it comes to identifying warning signs. Experience, training and expertise make this easier to do and an action plan quicker to set in motion. Swift action in the face of potential cash flow problems could be the difference between the business becoming overwhelmed or going on to survive and thrive.