Barclays Local Business has developed a new section to offer free business advice and information on a range of different day-to-day issues to help developing businesses.
This month's topic up for discussion is managing cash flow, aimed at helping people to spend more time running their business and less time worrying about its future.
When it comes to cash flow in business banking
, planning ahead is the key to success, according to Barclays. Looking at the month ahead to evaluate sales, charging structure, outgoings, and when customers will be paying, can give a clearer picture of the business finances.
Strategy should be the next priority when it comes to cash flow, Barclays says, and businesses should build a six or 12 month cash flow forecast, being realistic and taking in seasonal fluctuations, tax and payment due dates. Calculating how much money will be left at the end of the month and adding it up over a period of time will help to make decisions about the future of the business. Barclays business banking
recommends that each business owner keeps their records up to date as much as possible, so that they know how the company is performing at any given time. Keeping thorough accounts will help with this, it adds, which can be achieved with a cash book, balance sheet, wage books, and sales and purchase records.
An accountant can also be a valuable tool, Barclays suggests, and customers of Barclays business banking can get a free introductory session with a local qualified accountant.
Barclays urges business owners to make regular checks of the finances, ensuring that outgoings match income, and being proactive if there is a problem by approaching their accountant or local business manager.
Managing cash flow does not have to be difficult if managers follow simple guidelines, Barclays says, such as making sure customers pay on time, paying their own bills on time, ensuring there is always cash in the bank – if necessary, considering a business loan for big purchases to avoid draining the company's cash reserves. Apply online for a Barclays business banking account or compare business banking deals
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