"We can't pay our bills on time, HMRC is pressing for payment and we are struggling to get cash in. What can we do about this cash flow problem?"
First of all this is a common problem for almost every business at one time or another. In the current post recession period, cash flow problems can actually get WORSE not better.
TEN TOP TIPS to manage company cash flow problems
1). Manage cash flow daily. NOT weekly, NOT monthly, repeat manage cashflow daily. Please click here for our FREE daily cash flow spreadsheet.
This is used by hundreds of companies every day (including our company) to manage cash in and out of the business easily and quickly. Fill out the cash flow and use every day to see "where you are" and what problems lie ahead. Plug in the dates that EACH company that owes you money should pay you, then you have a guide to use for point 2 below.
2). Debtor collection: are your customers taking longer to pay you? If so why is this? Best thing to do is to find out (see marketing below in section 4).
3). Cost cutting