In April 2004 was officially declared Financial Literacy Month in the USA. This was originally a way of supporting individuals in financial wellness education, and it is something to be considered by small businesses too. With April being the end of the financial year for so many businesses, April is now also acknowledged as Financial Literacy Month in the UK.
Are you in control of your finances?
24% of small businesses in the UK have had problems with cash flow; this can lead to many problems, including being unable to pay staff, pay suppliers and undoubtedly cause sleepless nights for many business owners.
The reasons for a lack of cash in the business can be caused by late payment from customers and, in many cases, from delayed invoicing after the work has been completed.
Many business owners are reluctant to chase late payment, this can feel awkward if you want to maintain a positive relationship with a customer for future work. The simple answer is that you either bite the bullet and make the call or get someone to take it on for you. Don’t procrastinate.
You must also consider the cost of the debt. If you are sitting on an overdraft, you are paying interest daily, and this can easily cut a big hole in the profit you thought you would be making on the work carried out. It is costing you money.
If you are reading this article and the message is resonating with you or if you are interested in gaining a greater feeling of control of your business finances, please get in touch.
