UK Business Advisors is highlighting the importance of cash, and is urging SME’s to fully understand the cash position, in the wake of reports that suggest over 30 per cent of companies in the UK are suffering from cash flow issues. UK Business Advisors has produced a cash flow review checklist to help ensure a company’s liquidity remains robust. SMEs are advised to: 1.            Plan the cash flow year – If the business experiences peaks and troughs in demand, prepare for these and put in place measures to ensure the cash flow reflects the changes. 2.            Don’t bulk buy - hold as little stock as possible and turn it over quickly. Agree with suppliers a right of return of unsold stock.  Look at getting ‘stock on consignment’ (you do not pay before it is sold).  Can suppliers deliver to customers on the company’s behalf?  Careful planning should eliminate this potential drain on cash. 3.            Keep costs down – Review all cost items (including products and energy) and … [Read more...]