Some small businesses already use the government’s ‘Payment Times Reporting Scheme’ which was launched in 2021. It is essentially a database for large businesses and governments enter times to report their payment terms and times for small businesses. In doing so small businesses are able to access history and information on a business’s standard payment terms, actual payment times and the use of supply chain agreements.

One customer advised us of a client of theirs, a large beverage company whose standard payment terms were 90 days. ‘These terms were non-negotiable and would put a lot of strain on our cash flow. As a small business trying to cover costs whilst waiting for the payments to come in, 3 months after the delivery of goods took place, was very stressful!”.

This is where we ask, is it worth doing business with the big guys? Of course, the answer is dependent on each individual business and its goals, but if you have a cash flow strategy in place to help manage your money then the answer should be yes!

Implementing a system such as Profit First can be a game changer when it comes to cash flow as well as other areas of your business. When you utilise the tried and tested principles you will achieve tangible, deliverable positive results. Here at Profit First Accounting, our CEO Vanessa Fiducia is a masterly level certified Profit First Professional. This means that your business can receive expert advice and guidance on how to best manage your business’s cash flow. Whether we suggest you introduce the basic principles of Profit First to ensure that your money is being allocated and spent across the different areas of your business, or a more advanced ‘Drip Account’ (a strategy used for irregular income, and distributes money over time.) system. If you would like to discuss how your business’s cash flow can be overhauled, when you can say goodbye to the panic and anxiety related to thinking ‘where will the money come from to pay this…” then please get in contact with us.