Zenith Finance Blog
Managing Your Cash Flow
- Develop a cash flow projection and ensure you monitor and update it regularly.
- Minimise bad debts through an established credit assessment procedure.
- Establish an accounts-payable policy at the outset of every credit relationship.
- Establish a deposit policy for work in progress.
- Monitor your customers’ use of credit and adjust accordingly.
- Closely manage your invoice process and collections practices.
- Re-arrange annual payments such as insurance so you pay small instalments frequently.
- This will help smooth out lumps in your cash-flow cycle.
- Select an appropriate source of funding for your requirements and pay the debt before the interest kicks in.
- Use short-term cash surpluses wisely. Don’t keep them in accounts that don’t pay interest.