Managing cashflow during a crisis

The chancellor has set out a package of temporary, targeted and timely measures to support businesses through this period of disruption caused by COVID-19 Visit www.gov.uk for guidance. Below we outline 8 tips for managing cashflow during a crisis for your business.

CASHFLOW PLANNING CHECKLIST

Check if your invoices need to be sent to different email addresses or locations.

Check to see if customers will be paying from different banks? Ensure they reference what invoice they are paying when payment is made.

Contact your customers to see if they have cash available to pay you and run regular credit checks.

Consider changing your payment terms temporarily, although doing so could alienate your customers.

Review your ledgers to ensure you have contacted all customers with invoices due now.

Do your Accounts Receivable/Accounts Payable processes need to change due to current restrictions

Communication is key! Keep in regular contact with your customers for updates on how they are progressing.

Complete cashflow forecasts for worst case scenarios. Consider the fact that some of your customers may go out of business!


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