How to avoid unpleasant cash flow surprises

With proper cash flow management then you will not suffer from this. To test how good your business controls are, ask yourselves these seven questions:-

  1. Have you previously suffered a cash flow shock but done nothing to improve your controls?
  2. Do you get accurate monthly figures for all key areas of your business within 10 days of month end?
  3. Do you prepare cash flow forecasts for the next two months, every week?
  4. Do you know how much your business banked, yesterday, last week, last month?
  5. Do you produce full monthly budget set against cash flow for full year?
  6. Do you mix HMG money with your own business cash?
  7. Do you have a simple system in place, to prevent your business making unapproved payments?

We believe that implementing good simple processes is a good use of management time.

Do you have any suggestions or experiences, you would like to share?

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