In order to manage your business effectively you need to be sure that it has enough cash to keep trading and that it is running profitably.  To ensure this happens, I recommend you review your financial status at the start of each and every business week.   You will have financial records, probably in one of the most popular accounting software packages such as Sage, QuickBooks or Xero.  Either your own staff or your accountants will use these to prepare VAT returns and the other legal requirements such as the annual accounts required by Companies House.  These accounting systems can also produce many of the essential figures you need to review on a weekly basis.   Additionally, you need to forecast which clients are likely to pay their invoices this week.  This is often not the same as those who should pay this week.   Accurately forecasting your weekly cashflow is a skill every business needs to master.    Not all of the figures in the list below will apply to all businesses.  You … [Read more...]