(Newswire.net — November 30, 2013) London, London — Mr. Simothy stated “There is nothing more stressful than running out of cash when month end is few days away, you have got over 50 staff to pay and there is no single penny in the bank. How stressful is this to face? I do not wish this on any business owner, but I am still surprised that it still happens all the time to reflect how bad the cash flow management is in some businesses”.
Cash flow in a small business tells a story about any type of business. It is much more than just figures in that sense. It makes one wonder why so many small business owners in the UK who have a passion for running their own business know that cash is king and still has no idea how to make it financially viable with a healthy cash flow. Somehow they happen to make it work. Being aware of a few simple actions (or cash flow strategies), you can take your business from failure to success financially.
When running a SME business, one can easily get carried away or distracted when it comes to managing its cash flow consistently. This certainly leads to business failure. It does require meticulous management of cash flowing into the business for success. Many business owners managing their cash flow with gut instincts rather than through a carefully designed process or system. As human beings, we are prone to missing things, make mistakes and also mis-judge issues, easily over-looked things when it comes to running a small business, where you are doing virtually everything. One can feel like a fire-extinguisher or yo-yo, a jack of all but masters of none, when time is so limited. In today’s modern world, it requires you to be a master of all to manage a business for success!
Cash is so important, to stay on top of it is a huge challenge for small business owners who are always reactive, fire fighting and working their fingers to bones from hands to mouths incessantly. Understanding how cash flows into your business is something not to be seen a luxury but it is a must. No matter how many times you try to improve things, but still cash flow shortage comes and bite or sting you when you least expect it. This is unforgiving, bring’s frustration, can break one mentally and stretch one beyond the realm of imagination.
Accounting Preneur has designed a free template to help you plan and manage the money coming in, and money going out in your business. So that you have a clear idea how you are going to pay your bills in the next 3 or 6 or 12 months.
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