Cash Flow Management – Do You Have a Good Handle on It?

Cash flow management is one of the biggest concerns for small business owners in the 2020s – and really, who can blame them? It has not been the ideal start to the roaring 20s for most businesses.

The problem at the moment is that many businesses not only don’t have a good handle on their cash flow but their accounting system is not set up in a way that makes it possible to manage. Now, if you are about to ask what exactly is cash flow management, then let’s start right at the beginning.

What is Your Cash Flow Management?

Cash management is the way to analyze and manage how much cash is coming in and out of your business over certain periods. When done properly, you can identify where the cash flow shortages and surpluses are. If you were able to get a handle on this cash flow, you would then be able to greatly reduce stress and implement a more focused business strategy without the headaches.

Cash flow management generally starts with implementing solid bookkeeping services that manage the cash flow. Let us talk more about this.

Accounts Receivable

First and foremost, a system needs to be set up to control that inflow of money to your business. Taking too many forms of payment is generally where a lot of businesses falter. You will take payment through your website via an external processor, you take Paypal, you take checks, wire payments, cash – it all gets too confusing to trace.

Ideally, all of your customers would choose to pay electronically or automatically by one method. As a business owner, you can invoice through Quickbooks which allows customers to pay in a way that supports good cash flow and is much faster than waiting on someone’s check to clear.

Then we have to look at your accounts payable – or how you pay your bills.

Accounts Payable

Keeping on top of paying your vendors can be as simple as setting up a standing order for the most part, but how are you able to keep track of all of those instances that are not regular? After all, even if you use Quickbooks, that does not mean that they are using the same type of process to bill you.

In the case of certain transactions that occur for a business that directly affect your cash flow balance, such as rent or mortgage payments, payroll as well as those vendors who don’t do business via credit cards, they can also be incorporated into Quickbooks

When a rent payment to a landlord is a fixed payment to a specific date each month, you can set that recurring payment in Quickbooks to post the amount in advance. Payroll can also be aided through Quickbooks to see and manage how it affects cash as soon as it is processed.

Still Unsure? Let’s Talk

If you are unsure about Quickbooks and need some help, then bookkeeping services in Manchester are the perfect place to help you get started and avoid all of this confusion. Contact the team at Pebbles Bookkeeping today for bookkeeping services and Quickbooks training.

What our clients say…

“Pebbles Bookkeeping have been doing our bookkeeping for the past 2 years. Our Accountant recommended them to us and they are very professional, approachable and knowledgeble in the work they do. We send them our paperwork electronically and manually and they process it all efficiently in a timely manner.

I would not hesitate to recommend Sean and the team at Pebbles Bookkeeping – they do a fantastic job.”
Mark Gray, Taylor Made Finance Ltd

I just wanted to thank you both for the help you’ve given me thus far in setting up my new cloud-based bookkeeping system ‘Clearbooks’.

Having used Microsoft Excel for more years than I care to admit, I had more than a few reservations when considering changing the way I managed my books, yet understood that I had to make the change sooner or later.

After an intense training session with Sean, (where I probably asked 101 questions), my fears quickly dissipated and I can honestly say that although it’s likely to take me a little while to really get to grips with the new interface, I’ve no doubt that this simple system will save me so much time and hassle in future.

And less time spent doing my books, almost certainly means more time with the family and an end to rushing around like a mad woman at quarter-end!

Thanks again and I’m looking forward to working with you again soon.

Anne-Marie Armstrong, Amberry Marketing

Only The Brave have used Pebbles Bookkeeping for a few years now and we treat them instinctively like an integral department of our business.

I have worked with Sean for over two decades in my previous businesses and when Sean and Diane went on their own it was a no brainer to get them involved with our day to day accounting.

Pebbles manage our bookkeeping, expenses, credit control and PAYE and have a keen eye for detail and help us spot important financial matters before they become issues.

Their integrity and honesty are unquestionable and as a result, Pebbles are an asset to our business and will continue to work with us for many years to come.

Nick Aldrich, Only The Brave

Read our blog

Our awards