Top tips for cash flow

You know cash flow is important but note sure how to start? Here are our top tips for managing your cash flow:

1. Develop a cash flow projection and ensure you monitor and update it regularly

2. Minimise bad debts through an established credit assessment procedure

3. Establish an accounts payable policy at the outset of every credit relationship

4. Establish a deposit policy for work in progress

5. Monitor your customers' use of credit and adjust their credit limits accordingly

6. Closely manage your invoice process and collections practices

7. Re-arrange annual payments such as insurance so you pay small instalments frequently, this will help to smooth out lumps in your cash flow cycle

8. Select an appropriate source of funding for your requirements and pay the debt before the interest kicks in

9. Use short term cash surpluses wisely, don't keep them in accounts that don't pay interest. 

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