At the moment the businesses who usually make profits are having to live off their savings, or failing that, they are reliant on benefits which must have left them feeling downhearted,
Managing the cash in a business is more difficult than it seems, and I am sure a lot of people who have had a lousy lockdown will have learnt a lot about the importance of having a savings pot for the business...just in case.
There are lots of traps to fall into when the business is making money. The most obvious is that your turnover may suddenly drop but there are other traps to avoid :
Having a bookkeeper manage the cash flow, maybe even prepare some cash flow forecasts to help you see which weeks/months are likely to be tricky before they happen is definitely worthwhile. This will give you a real sense of reassurance.
It may be possible to negotiate shorter payment terms with customers or even take card payments or deposits upfront to help ease cashflow. If you can change your wages from weekly to monthly this may give you more time to get your customer monies in each month.
Even the most profitable companies can have tricky months, so it is definitely worth keeping a buffer to avoid flying too close the sun.
07825 152951Home Page FAQs Blog Facebook Instagram LinkedIn
Company Number 13495928
VAT No. 450467105
Registered in England and Wales - Registered Office: Staple House 5, Eleanors Cross, Dunstable, Bedfordshire, England, LU6 1SU
I have never used a bookkeeper before so I was a bit apprehensive. Working with BW has been the best decision we have made recently. I knew we needed help with behind the scenes work and this has been a real relief.
Sam B, Cheshunt
Excellent bookkeeping service and knowledge of the work. We recommend this firm if you are looking for a bookkeeper,
Phil Bass, Dunstable
I learned more about how to direct my business in 20 minutes talking to Jen at BW Bookkeeping than in 4 years of meetings with my accountant.
Rob L, Aston Clinton