Cash flow is the lifeblood of any business. Failure in your cash flow inevitably leads to failure in your business. In particular, fast growing businesses can find themselves suffering from cash depletion but, without cash flow, a business will struggle to survive no matter how profitable it is.

However, businesses which forecast their future financial performance and cash flow, and measure it regularly, are much better equipped to deal rapidly with any unexpected hiccups than those who do not plan ahead.

Five cash flow tips you cannot afford to ignore:

1. Cash is your number one financial priority - Put simply, if you run out of cash, your business will run out of life. Always remember this, and consider it every single day that you are trading.
2. Do you know what your bank balance is today? - If the answer is no, you are not in control of your business and you can't make sensible, informed or accurate business decisions.
3. Manage from your working capital - too many business owners manage from their monthly financial statements or bank balance and not from their working capital, which also takes into account money owed to them and money they owe. This is the most critical financial information you need to control your business, day to day.
4. Spot cash flow problems before they hit - Cash flow problems rarely pop out of the blue. They will loom ahead, so be sure you see and deal with them in time.
5. Get someone to help you - most small business owners find it difficult to recognise the importance of cash flow management. If this applies to you, and you struggle to calculate your working capital accurately, please contact us for assistance. 

It has been said that turnover is vanity, profit is sanity but cash is king. Talk to the experts at Prime and take advantage of our in-depth knowledge. We can provide you with cash flow advice and forecasts for use either internally in managing your business or for presentation to third parties such as bank managers.