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.

Don't just take our word for it...

Steve Tanswell, Manchester Facades

I changed book-keepers around a year ago because of a disagreement.  I employed Diane of Pebbles and having been with the same firm for 10 years, I was amazed by how easy working with Diane was.  Not only did the change save me money but also saved me time.  Utilising new technologies (to me) have massively improved the amount of money I can claim back in VAT and has made the whole process speedier and well as easier.  Even when Diane is chasing me for information she does in a friendly professional manner.  I’m thrilled to be working with her and would recommend her to anyone.

Sarah Rekia, Site Welfare

“In bringing Pebbles onboard, it has made me wonder why we decided to try and do our own bookkeeping at all. Pebbles came in and sorted 18 months worth of mess we had unwittingly created, and we cannot be more grateful. I wish I had been told about them years ago and I hope every business out there struggling would give them a call to fully see the benefits they are missing out on.”

James Balderstone, Lucid Networks

Pebbles Bookkeeping took over our bookkeeping when a full-time member of staff left the business.  Our accounts are relatively complex for a business our size because of the number of different suppliers and products we deal with, but Pebbles were able to get quickly up to speed.  We have significantly reduced our costs spent on bookkeeping activity as a result. They have also helped us move to a new accounting system (Xero), which we are already seeing the benefit of, and we’re looking forward to working with Pebbles in the future to automate more of our back-office processes.

Wayne Dinning, Managing Director, SD Waste Paper Limited

Diane has been providing her services to my company for approximately 6 months now and I can honestly say that due to her assistance, my company is running a lot more smoothly than it has at any time over the previous 30 years that it has existed.

I would just like to say that I would recommend her services to any business, whatever the size, as I can only see that her services would be beneficial to any company that may choose to employ her services.

Robert Flinn, Director, The Drawing Room

“Pebbles have provided professional and personal approach to all our accounts needs from processing invoices to management accounts. Based in-house they have become a valuable asset to the business and have given us a more strategic and analytical approach to our finances.”