Improving cash flow management

Wednesday 31st October, 2012
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PayStream news
Cash flow is the life blood of all businesses and is the primary indicator of business health. It is generally acknowledged as the single most pressing concern of most small and medium-sized enterprises (SMEs), although even finance directors of the largest organisations emphasise the importance of cash.

In a credit crunch environment, where access to liquidity is restricted, cash management becomes critical to survival. In its simplest form, cash flow is the movement of money in and out of a business. The effect of cash flow is real, immediate and, if mismanaged, totally unforgiving. Cash needs to be monitored, protected, controlled and put to work.

There are four principles regarding cash management:
  • Cash is not given. It is not the passive, inevitable outcome of your business endeavours. It does not arrive in your bank account willingly. Rather it has to be tracked, chased and captured. The process needs to be controlled.
  • Cash management is as much an integral part of your business cycle as, for example, preparing and providing detailed consultancy services.
  • Good cash flow management requires information. For example, you need access to data on: your customers' current track record on payments, outstanding receipts, short-term cash-demands.
  • You must be masterful. Managing cash flow is a skill and only a firm grip on the cash conversion process will yield results.

As a customer of PayStream, whichever product you choose, excellent cash flow management runs through the heart of our business.  This can be as simple as ensuring payments are made on time every time to our My Max customers or by providing our excellent PSC Insight or My PSC Online systems to our PSC customers.

Our PSC services provide clear, key information for managing the cash flow of your business.  Bank statement information is displayed clearly along with information regarding unpaid invoices and tax payments due, these are highlighted so you always know what cash needs to come in and go out to keep up to date.

If you would like to know more about how our PSC services could benefit the cashflow of your limited company please feel free to call our New Business team on 0800 197 6516 (option 1).



In a credit crunch environment, where access to liquidity is restricted, cash management becomes critical to survival.