“Never take your eyes off the cash flow because it’s the life blood of business.”
This is sage advice from the brilliant Richard Branson.
Yes, consistent cash flow is certainly something worth attaining AND MAINTAINING on a regular basis and yet so many busy entrepreneurs don’t take the time to routinely review their accounts payable and receivable detail reports, which ironically contains the key information they need to ensure they not only pay their bills on time but have the money available to do it!
In this fast paced corporate world, yes, keeping track of every little aspect of your operations can be overwhelming. As long as you’re entering any outgoing payments and incoming invoice receipts, shouldn’t your records be accurate? What if they’re not?
You could miss out on knowing about missed payments from your customers who owe you money now or if you’re the party inadvertently not paying your supplier, it’s not going to be too pretty when your orders all get postponed. I strongly recommend that you and your bookkeeper meet on the 10th and 25th of every month to assess the payables receivables situation. That way, any necessary follow-up calls to customers or vendors can be made on a timely basis to keep your cash flow coming in and prevent your financials from being compromised.
Because that would be the understatement or overstatement of the year!
As business author Sandra S. Simmons says,“When it comes to money, ignorance is NOT bliss. What you don’t know CAN hurt you.”
Preferred Client Services, professional bookkeepers in Edmonton, AB working as business partners to make a positive difference in your bottom line.