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.