In the first part of this blog we talked about the main components of good cash-flow management.
The components were: forecasting your cash-flow, evaluating terms with your trading partners and having a good system to enforce payment discipline from your customers. They are essential to improving your cash-flow and making your balance sheet healthier.
Here are three best practices that help you achieve a stronger balance sheet:
1. Full Visibility
In order to have full visibility you must be able to see if your invoices have been sent, received, read, queried and resolved. A real-time tracking system allows you to trace all invoices from the moment they’re sent up to the time that payment is received. This means that you can deal with any invoice issues or queries as they arise and speed up the dispute resolution process. Continue Reading…
Posted on
February 28, 2013 in
Cash Flow Management, Celtrino Express, eBilling
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The main issue with cash-flow is that every company is trying to do the same thing and not everyone can succeed. Companies try and get their receivables in as fast as possible while also delaying their payables in order to keep as much cash on their books. Somebody loses out in the end and it’s usually the company that has not prioritised cash-flow management.
Late payments to SMEs threaten their existence as cash-flow is an imperative to their survival. Small firms find themselves at the mercy of large companies who are increasing the time-frame in which they pay suppliers for work that is already completed. It is estimated by the Telegraph that £36.5 billion is due in late payments.
