On the 10th anniversary of Small Business Saturday (3 December), a yearly event to mark the success of small businesses throughout the UK, Business Secretary Grant Shapps announced, ‘The Payment and Cash Flow Review’.
This will deliver an in-depth review of the poor payment practices that are harming SMEs, with an estimated £23.4 billion currently owed in outstanding invoices.
For many small businesses, late payments present them with two significant problems:
- Many do not have sufficient time or resource to chase after the funds that they are owed, which is bound to negatively impact their cash flow; and,
- It can often be the case that a small business is not able to accommodate lengthy payment terms or delayed settling of invoices.
Within scope of the review are the role of banks and lenders, and of technology-enabled accountancy software, in aiding small businesses to effectively manage their cash flow and promoting a better understanding of prompt payment practices.
Importance of managing cash flow
Late payments and poor payment practices can test the resilience of small businesses.
Resilience, and the ability to withstand the pressures associated with not receiving your money on time, can be greatly improved with effective cash flow management.
To put it plainly, cash flow management is about ensuring you have a sustainable source of funds that are sufficient to cover your financial commitments.
With the right support, from professionals that understand the challenges you face, it doesn’t have to be a daunting exercise.
We offer outsourced bookkeeping services in Bedfordshire, Cambridgeshire, Hertfordshire and throughout the UK, helping you to take control of your cash flow, all year round, so that you can face whatever challenges lay ahead with confidence.
We also support a range of online accounting and bookkeeping software packages, some of which have built-in cash flow management tools, meaning we can take care of your cloud accounting needs and help you to ensure that you’re getting the most out of your chosen tools.
To find out more about what we can do for you and your business, from our offices in Hertfordshire, Bedfordshire, and Cambridgeshire, contact us today.