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:-
- Have you previously suffered a cash flow shock but done nothing to improve your controls?
- Do you get accurate monthly figures for all key areas of your business within 10 days of month end?
- Do you prepare cash flow forecasts for the next two months, every week?
- Do you know how much your business banked, yesterday, last week, last month?
- Do you produce full monthly budget set against cash flow for full year?
- Do you mix HMG money with your own business cash?
- 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?