Many business fail each year because of a failure to manage their cash flow and – more specifically – problems related to invoicing. The pressures arising from outstanding invoices can present even the most organised businesses with seriously difficult challenges. But with the correct processes in place, your business ensure it is in the best financial position possible. For this reason, we’ve put together 5 tips for successful cashflow management…

1. www.peakcashflow.co.uk
FOR HEALTHY
CASHFLOW
MANAGEMENT
5 USEFUL TIPS

2. Many business fail each year because of a
failure to manage their cash flow and – more
specifically – problems related to invoicing.
The pressures arising from outstanding invoices
can present even the most organised businesses
with seriously difficult challenges.
But with the correct processes in place, your
business can ensure it is in the best financial
position possible.

3. KNOW YOUR
CUSTOMERS
TIP #1

4. Understanding your customers is crucial in
managing your cashflow. By understanding what
sort of business they are and their liability, you
can plan your invoicing and credit control
strategy more accurately.
Most importantly, different customers might
have different payment practices. Do they pay all
their invoices on a specific day each month or is
it only as-and-when the need arises?
If you build this into your planning, it will make
the entire invoicing and credit control process
much more straightforward.

5. AGREE
CLEAR TERMS
TIP #2

6. Agreeing clear terms and conditions from the
outset can save valuable time when it comes to
dealing with invoices and payments later.
If your terms are consistent and your customers
understand any late payment charges, this will
reduce the risk of disputes in the long run.

7. INVOICE QUICKLY
& ACCURATELY
TIP #3

8. Simple but crucial; make sure that invoices are
sent out to schedule and that all information is
accurate. Even small errors can cause delays.
For small businesses, this may mean scheduling
your invoicing at a specific time each week or
month, and keeping an organised system of
filing.
Alternatively, online, cloud-based accountancy
packages – such as Xero – can help you with
this process.

9. SIMPLIFY YOUR
CREDIT CONTROL
TIP #4

10. Implementing a simple credit control process
needn’t be complicated.
The benefit is that it can help to ensure payments
are made on time.
Setting out a day-to-day strategy can reduce the
risk of late and missed payments.

11. MAKE PAYMENT
EASY
TIP #5

12. Your customers will prefer a simpler and faster
process in terms of payment.
The best option is online payment – you
definitely want to avoid the use of cheques which
can cause delays.
A further benefit of online payment is that it can
help create repeat business due to your providing
a positive customer experience.

13. For more useful advice about cashflow
management and finance for small businesses,
please visit our website:
www.peakcashflow.co.uk