Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Thursday, September 11, 2008

Cash, cash, cash ...

Cash is the very lifeblood of business, something which seems too often forgotten.

Time and time again you see talk of turnover or profits, and cash really not getting the attention it deserves. In the present market cash is becoming rather scarce, customers are paying later, and lenders are making new loans or overdrafts much more difficult to come by. So the focus must be on preserving your own cash flow at all costs.

I notice this week, that even our good friend Keith Steven at KSA Company Rescue is writing on his blog that they are having great difficulty being paid. KSA specialise in rescuing businesses in distress, mainly through the use of the Company Voluntary Arrangement (CVA) mechanism - indeed they are the countries leading experts on the CVA. Over many years we have worked very closely with KSA and have both saved many businesses through innovative solutions and good quality financial management. If their clients are having trouble paying them in order to save their businesses (despite not having to pay historical creditors) then it really does make you wonder what is happening with liquidity.

So, the message is simple. Focus on cash. Get your sales invoices out quickly, make sure you are only giving credit to people who can pay you (take a look here), and then ensure you get paid in a timely manner.


Cash really is king!

No comments:

Post a Comment

Let us know what you think!

Insight Associates, Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL, UK
Tel: +44 (0)1279 647447 Fax: +44 (0)1279 814512
Insight Associates is a trading name of Financial Catalysts Limited. Registered in England and Wales Number: 5670047. Registered Office as above. Disclaimer | Cookies