Managing Business Finances

Effective financial management is essential to the long-term success of any business. Robust financial processes can help you to avoid and address common challenges.

Avoid cash flow problems

There are many reasons why your business may face a cash crisis, and it is crucial to understand the factors that can cause cash flow problems.

Common causes of cash flow problems include:

  • Late payment.
  • A key customer becomes insolvent.
  • Insufficient working capital.
  • Poor financial planning.

The key ways to reduce cash flow problems include:

  • Adopting tight credit control procedures.
  • Checking that customers are creditworthy.
  • Offering incentives for early payment.
  • Making it as simple as possible for customers to pay.
  • Set up an overdraft facility.
  • Negotiate part-payment in advance for large orders or big projects.
  • Negotiate better credit terms with suppliers.

Find out more

Managing Business Finances

Unpaid debts

No matter how efficient your credit control procedures are, at some point, you may have a customer who has failed to pay an invoice. In these circumstances, there are several different types of action that you can take to secure payment of the debt.

  • Mediation and arbitration.
  • Debt recovery agency.
  • The Small Business Commissioner.
  • Court proceedings.
  • Insolvency proceedings.

Find out more

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