Cash Flow Management Services in the United Kingdom
3E Accounting explains the importance of building business cash cultures with cash flow management services in the UK.
The lifeblood of any business is its cash flow. Any successful entrepreneur will tell you that cash flow matters more than profit or loss statements or making money. It is a core requirement that needs to be measured and managed. It acts as a vital sign of the business health of a company, and good cash flow will ensure shareholder returns. Cash flow management services in the UK can help your business stay healthy and ensure that vital sign stays strong.
Money Management Matters
Effectively managing your business’ cash flow comes down to how diligently you track the money that goes in and out. Ineffectual credit control can result in a lack of working capital, making your financial forecast look bleak. Cash flow management and projection that is done expertly will improve the liquidity of a business. You will be able to plan out future cash reserves, cover current situations and take advantage of better working capital.
Your company’s cash flow management may be giving out distress signals that indicate a review is in order. For example, the business may have arrears with the tax authority HMRC. Your company may be underperforming against its corporate business plan. Perhaps the most telling indicator would be tight working capital or low cash reserves.
Good cash management techniques and models will facilitate better debt solutions and more strategic business drivers. Creating a strong cash culture helps manage liquidity risk, which can be a barrier to growth and success if left unattended. Expanding debt facilities, extending credit and delaying bigger financial payments are some short-term solutions that can improve cash flow.
Firms such as 3E Accounting offer managed solutions to your cash flow issues, including credit control and management. Expert analysis can highlight cash flow ‘peaks and troughs’, advise on remedial action and gain better traction on the taxation. Cash flow projections can be done for:
- Long-term considerations: focuses on developing capital strategy, improving business scalability and long-term purchases. Projections tend to span up to five years.
- Short-term considerations: usually more current, and aims to manage daily cash and short-term liquidity planning. Projections range from weekly to monthly forecasts.
Financial risk can be better managed and spread out if a business is able to work with forecast cash flow models. For example, demand forecasting looks at consumer demand predictive models. Other forecast models may examine operational issues such as supply chain disruption.
This type of cash flow management enables businesses to stabilise and build resilience against future risks. As your business grows, there will also be greater demands on cash flow. Overtrading can result in unmanageable risks, which can be avoided by careful management. Companies can better plan payment and collection models to ensure that cash flow remains viable. Cash flow management that is done well may also reveal potential sources of cash from the business itself.
Having a robust and positive cash flow does not have to be a pipe dream. You can make it into a reality with reliable cash flow management services in the UK. 3E Accounting offers customisable solutions that provide innovative and scalable outcomes. Along with our affiliates and partners, we deliver a holistic view to streamline business solutions. Contact 3E Accounting today to start building the profitable business of your dreams.
