Manage Cash Flow With The FD Centre
Starting a business from scratch can be very daunting, and in the current economic climate, even managing to keep your company trading can be an uphill struggle. Research has found that 4 out of 5 businesses fail because of poor cash flow management, with new businesses and products having a less than 25% chance of succeeding. They’re not the most encouraging of odds but fortunately, The FD Centre, with some of the UK’s finest financial directors on their books, can help to raise those chances significantly.
The failure to manage cash often has a knock-on affect right across the rest of a business. Spreading out expenditure is important; whilst ensuring invoices are settled on time is also paramount. Profit and loss sheets are irrelevant when it comes to cash flow as the priority is making sure a business has enough cash coming in to meet its expenditure.
Even the most experienced of CEOs or MDs are not likely to have been fully trained in finance or accounting, meaning it’s all too easy to get lost amidst data and reporting. Whether trained or not, maximising cashflow and spotting peaks and troughs can be very time intensive and not a task many heads of growing corporations have the time to dedicate to. The FD Centre can help to streamline this process. Tasks like communicating thoroughly with the bank to keep them ‘on side’, consolidating outbound payments to simplify your outgoings and devising strategies to improve inbound cash flow are all aspects which a part-time FD can assist with.
A part time FD from The FD Centre can implement a basic cash flow plan in the early stages of development, helping to banish the ‘famine or feast’ atmosphere which can surround businesses without such a plan. Each month, an amount of reserve cash will be built up which can be seen as an internal insurance policy. It helps to provide peace of mind and can help when the time comes to expand. If the right strategies are already in place for such growth, it can only make the process easier.
With such discouraging odds of businesses succeeding, tackling cash flow should be one of the main things a business manager looks to rectify. The FD Centre not only provide high-quality part-time finance directors which you can choose yourself to suit your company’s needs, they also provide a series of videos called ‘webinars’, which can advise and assist managers getting to grips with income and expenditure.