Cashflow is King, without adequate cashflow it is almost impossible to run a business. At Ernest & Co Accountants, we take on the responsibility of chasing debtors on your behalf to ensure early payment. We will send out monthly debtor statements to your clients, we will chase up payment for your invoices via emai/phone to your client while maintaining the smooth relations that you have with them. Our aim is to ensure that there are no bad debts and to improve business cashflow.
Where necessary, we will set up a direct debit option for your business that you can set up with your clients as part of your initial agreement with them to ensure that funds are collected via Direct debit on invoicing. We encourage the use of Gocardless but the clients may choose any other software they deem feasible to their needs.
We can help with the preparation of supplier payments which will free your time and help you with developing your business. We will provide these to you usually bi-weekly which ensures that short term working capital is adequately managed.
With the above in mind, we will then help with the management of your cashflow through preparation of short term cashflow forecasts based on your receivables, payables, overheads and banking, taking into consideration the tax obligations of the company, potential Asset purchases etc. The short term cashflow usually spans a three month period and allows you to see your potential revenue and outgoings over this period and plan ahead where there is a potential short fall. This will allow the business to have adequate control over its cash requirements for running the operational business aspects.