Off To See My Lawyer
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Handy Checklist: Cash Management

  • Review your cash flow forecast frequently.  Consider adding additional cost items to clarify, and extra columns to show weekly as well as monthly projections for closer control.
  • Do you know the ratios currently used in your type of business to measure and/or benchmark cash management performance?
  • Do you have a system that clearly shows your debtors and creditors and ages them?
  • How accurately do you know your stock value and optimum levels?  Can you reduce the levels without affecting your efficiency?
  • Do you have a business savings account?  Are you aware of how much you spend on debt interest and could gain in savings interest?  Can you do anything to improve this?
  • Budgeting is any active management tool – do you use it properly?
  • Do you compare your budgets against actual monthly results?
  • Do you analyse where the variances have come from and alter forward projections accordingly?

Off to see my lawyer can advise you on basic taxation issues, and where necessary refer you to a specialist tax lawyer whose services we recommend.

Checklist Source: Start Up & Run Your Own Business: The Essential Guide to Planning, Funding & Growing your New Enterprise by Jonathan Reuvid (Kogan Page; 8th edition 2011)

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