Some really practical advice from Anthony Davies, Director of Primotax, tax and accounting specialists, about the importance of having a system within your business to manage cashflow.  Amongst many other important takeaways from this fascinating webinar, he shares his Cashflow Management System:

  • Invest - in the finances of your business - instead of considering this to be an expense, see it as a critical investment to not only ensure the survival of your business but also to give you peace of mind
  • Choose - a cloud based accounting system that integrates with your bank account and gives you information in 'real time'
  • Invoice - raise invoices through the accounting system so that you can track payments
  • Automate - your invoice chasing via the accounting system - most people want to pay you if they are happy with the service/product that you have provided but they will pay first 'whoever shouts loudest'.  
  • Delay - payments to suppliers - paying them early may mean that you can run out of cash
  • Understand - the process of debt collection and use a service such as the Federation of Small Business or the Chaser app so that you are consistent in your approach 
Anthony also shared a real life case study of a large PR client who were profitable but always operating in overdraft and were unable to reserve cash to pay their tax bills leading to costly bank charges and penalties for late payment.  By following the advice and guidance provided by Primotax they moved from a manual accounting system to cloud accounting, moved the responsibility for chasing late payments from the finance team to the client managers who had an existing relationship with their clients, changed the recurring billing from the end of the month to the 1st with 15 days payment terms and paid all of their suppliers on the same date.

To find out more watch the recording - https://zoom.us/rec/share/2XhC840Q97xLU9_8gBV4NE6RGsX9M4hfYOXqdzXFqDBZkIN2rrB6YTLygBrWZsQ8.33hNumONFT5hOL-P?startTime=1603279802000
 
........and the accompanying slides to make notes - Cashflow slides.pdf

Anthony also share a cashflow excel sheet for those who want to start managing their cashflow but are not yet ready to commit to cloud accounting systems.
Primotax cashflow model.xlsx

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