The circumstances may not be right if you suffer from fraud, theft or a serious cyber-attack. While you can take steps to protect your business from such wrong-doing, this is not manageable in the same way.
Office Assistants, the Essex Bookkeeping specialists, say that crises like these, or natural disasters such as flooding, may need more cash than you have available to be able to recover. But these are rare circumstances, and while it is good to have contingency cash, your outsourced bookkeepers would recommend that, like most successful entrepreneurs, you do what you can for protection and then stop worrying about them.
Managing the Cash Flow
Cash flow, on the other hand, must be kept in mind all the time remind Office Assistants (http://www.officeassistants.org). The most important factor in good cash flow management is keeping accurate and up to date records. This is what will allow you to know the state of your finances at all times and have no nasty surprises.
Regular cash flow forecasts will also allow you to project that knowledge forward, so that you will know when monies are due in and can allocate them for spending. This means you can plan activities for when you can make financial resources available, and will be able to develop your business in this way.
Help From Bookkeepers
Your outsourced bookkeepers will be invaluable to you in helping with this. They can also assist with controlling your debtors and paying creditors at the right time. Paying within terms but not too early means you will keep your cash as long as you can, and maintain a good credit rating.
Use your bookkeepers wisely and they will ensure that invoices go out promptly with advantageous terms. They will also flag up any potential problems with cash flow that you might otherwise miss. Noting them in good time means they can probably be avoided. Talk to them about whether late payment penalties or invoice factoring would be a good idea if you have any customers who take their time to pay.
All of this could help you manage without having to take out a bank loan or search for alternative funding.
Office Assistants offers bookkeeping services and much more to clients throughout the south east of England from their base in Rainham, Essex. For more information visit http://www.officeassistants.org.