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the cash book after Controlling your cash An aged debtor list shows
reconciliation with the In the last paragraph how long debts have been
bank statement. comment was made outstanding. Credit
You will no have about sales receipts. How control is vital to any
information you need to and at what rate cash business, especially small
see how your actual flows in and out of the ones. If you don’t convert
results differ from your business is crucial to its your sales into cash
forecast results. survival. Many quickly enough you may
Are sales on target? established businesses run out of cash, which
Has the cost of materials have failed because of may put your business at
increased – reducing poor cash control. The risk.
gross profit? ability to control cash
Are salaries higher than will come with
expected? experience but a good
What has happened to start can be made by
your sales receipts – who checking at regular
is not paying? intervals how much is
There will be many owed to your business
questions, and answers and how much is owed
will have to be found – by your business.
but don’t panic! Your You will need to have
local Enterprise Agency, accurate reports on the
accountant and bank status of your debtors
manager are there to and creditors.
help, prompt answers The best way of doing
and guide you on the this is to draw up aged
right road. debtor and creditor lists,
as well as carefully
controlling levels of
stock.
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