A couple of months I wrote a blog about the importance of cashflow in business, the blog got a massive response, your emails and comments have inspired me to chat further about this, providing ways on how to improve cash flow. With some  cashflow tips for the home as well as your business.

As an accountant, the biggest thing I am currently seeing, whether it be in small businesses or even with everyday families is cash flow problems.

My main message, Cash is King!

Many people blame the government of the day, the economy, their clients & the list can go on and on.

However, on most occasions, they fail to look at themselves in the mirror.

Here are 4 tips to help with the questions of how to improve cash flow. How to get your cashflow under control,  and how to get your finances in check. Remember it is an ongoing commitment;


Plan for the ups and downs

Be aware of when lean cash flow patches are coming up and plan accordingly. This could be around Christmas time for families or around tax time for businesses. Avoid major purchases from your business’ working capital unless you are sure you have cash to cover it. A cash flow budget is a must as it will help you see a possible down turn – I am continually staggered of how few people and businesses have a live working cash flow report or budget.

Have finance products working to your benefit

Overdrafts, credit lines, lease facilities and cashflow funding products can all be excellent tools to help boost a business’s cash. Even the credit card can be a powerful tool to ease the squeeze as long as you are sure the debt can be paid before interest kicks in; it is the best and only way to handle credit cards. The interest accumulated on not paying a credit card off can be crippling to all if they are not used properly.

Avoid tax and other statutory penalties

Save yourselves the stress and most importantly, the extra dollars by paying all bills on time. Take advantage of discounts if offered, many electricity, gas and water suppliers will offer a small discount for paying your bill on time – and these discounts all add up.

Keep your hands out of your savings

Another way on how to improve cashflow is to keep taking cash from your savings for everyday items as minimal as possible. Only buy what you can realistically afford and remind yourself of what your savings are really for. Make sure to make a financial plan to monitor your progress.

The most important thing for all to remember is that there is no magic solution to cashflow problems (well, not unless you win the lottery), it is an on-going commitment that must always be adhered too and worked upon. This is how to improve cashflow, and how to understand your numbers in your business.

Above all, talk with your accountant. We are here to help. Contact us today