Welcome to the Accsys Accountants Business Directory


Keep an eye on the cash!

The saying Turnover is vanity, Profit is Reality and cash is king is as true now as it has ever been. Believe it or not you can run a loss making business for years as long as you have positive cash flow but a profitable business will fail very quickly if it runs out of cash.

So how do you keep an eye on the cash? Most people look at their bank accountants and then do a quick mental calculation of incomings and outgoings to see if they will be ok.

Whilst this is a great start a better way to do this is to use a simple spreadsheet that takes your current cash balance and adds to it a list of known income  and then deduct your known outgoings.

Doing this will show you the cash position of your business in advance. We believe you should forecast for a minimum of four weeks. Four weeks is an important number because over this and the forecast becomes inaccurate but four weeks gives you an opportunity to do something about any impending cash shortages.

What can be done about Cash Shortage!

There are things you can do when you know you are going to run out of cash but there is very little you can do when it is a surprise.

The actions you can take include:

  • Encouraging customers to pay sooner
  • With holding supplier payments
  • Arranging more finance

We have developed the perfect tool to help you forecast cash and because we want to help as many businesses as possible to manage their finances we are giving it away for free. So if you want a copy of this excellent little tool then please email will@accsysltd.co.uk and we will be happy to forward it to you.

If you know anyone who wants an accountant who takes a holistic view of the business and doesn’t just focus on the finance then please give them our details.

Why not visit our main site www.accsysltd.co.uk.

Accsys Accountants Limited helping small businesses in Maidstone and Kent improve and grow.

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