There are a few tasks that you can do regularly to make sure you are on top of your cashflow. Here’s our basic checklist for you to follow:
- Look at the balance in your bank account at least once a week and reconcile the invoices you’ve issued or paid with the cash-in and cash-out transactions that have gone through the bank account. Sounds like a simple job, but if it isn’t done regularly, it makes it almost impossible to monitor your cash position.
- Check if there are any overdue invoices – do you owe suppliers or are there outstanding client invoices? If you’ve reconciled your payments, you can quickly identify what’s still due.
- Are there any large payments to be made? For example, VAT or quarterly rent? If you can see the cash balance in your bank account is going to go into the red, it gives you a chance to take action before it happens.
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