on time

Small Business Accounting – Get Your Cash in on Time

On time – to keep the cash flowing through the business We all know that cash is the lifeblood of the business. A reservoir of cash is made up of positive bank account balances, physical cash plus any short-term top-up facilities such as agreed overdraft facilities. It is vital that the reservoir does not run dry. The main cash flow into the reservoir comes from amounts received from customers. Outflows are mainly as payments to suppliers and employees and business operating expenses. These outflows feed into products or services that are eventually sold to customers and the cycle starts again. So on time receipt from customers keeps the reservoir topped up. On time – to keep the customer financial relationship clean and transparent Credit management is just easier when then th... »