Today’s the day when George Osborne will present the government’s future tax and spending plans as well as announce the state of the nation's finances.
The likely content of the statement will include the following:- http://www.bbc.co.uk/news/uk-politics-30291460
• An additional £2bn being put into health services across the UK
• 1,400 flood defence projects are to receive funding to protect 300,000 homes. The Treasury says the £2.3bn investment – which is not new money – will help prevent £30bn of damage in areas including the Thames and Humber Estuarie
• Bicester in Oxfordshire has been chosen as the site for the coalition's second new garden city. Up to 13,000 new homes are due to be built on the edge of the town, as part of the coalition's plans to help deal with the UK's housing shortage
• A tunnel is to be dug to take a congested main road past Stonehenge. The 1.8-mile (2.9km) tunnel is part of a £2bn plan to make the A303 a dual carriageway
• Deputy Prime Minister Nick Clegg is set to pledge an extra £150m of funding to help children with eating disorders. The aim is to invest in preventative therapy to cut the need for hospital treatment
We might not be the Chancellor, but we have to know how manage cash flow in our company.
With this in mind, here are five top tips for Managing your Cash Flow in these tough and challenging times. All businesses are seeking ways to grow their sales, be it from acquiring customers or gaining additional sales from existing ones. However, while this is certainly a positive plan of action, unless this is done with an eye on the cash collected, the efforts can be easily wasted.
Chasing turnover alone is a well-known road to business failure! Remember, sales are vanity – profit is sanity – but CASH is reality!
Here are 5 top tips that are simple and easy to use for managing cash flow:-
1. Cash is King!
“There are three reasons why we can’t do this. The first is that we have no money. And the other two don’t much matter.” Fiorello LaGuardia
Your business simply cannot operate without cash. It’s the lifeblood of your business.
So the absolute golden rule is to make sure that you know your exact cash/bank position.
The importance of liquidity cannot be underestimated.
Liquidity is a measure of the extent to which a person or organisation has the available cash to meet immediate and short term business obligations. Ensure that your finance function can always provide you with an accurate position at any moment
3. Resolve issues
Deal with queries from customers promptly.
They won’t pay anything if there are any matters to be resolved in an invoice, no matter how trivial they may seem to you.
4. Drop late payers
Don’t be tempted to trade with businesses who repeatedly fail to meet their payment commitments.
Alternatively, you could increase your prices to them to compensate for the extended payment period.
At the end of the day, a bad paying customer is probably not worth having – they will eat into your cash flow.
Staff costs are typically one of the largest expense lines in any business.
Your salary payments are likely to be amongst the biggest single outgoing payments you face every month, especially when taking the associated Income Taxes and National Insurance payments into account.
To aid your cash flow, stage your monthly salary payments a different date to the supplier payment runs.
Need more tips on Ways to manage your Cash Flow or tips on a range of other management and trainer issues from experts? Visit the new Creativedge free mobile App providing immediate, expert management and personal development tips and advice.