Best Payroll and Timekeeping Services in Ayr

I was at a business training event last week and the very successful businessman leading it described how one of his businesses went through a bad patch 10 years ago. He took his eye off the ball, didn’t get management accounts for months from his in-house accountant and wasn’t aware of issues that needed addressing. He came back from a lovely holiday at Xmas to find out there was £500k less in the bank than expected. His finance team had resigned just before Xmas, so he did have an inkling that something was wrong. Although this all happened a long time ago he still gets emotional at the thought of it and his very words were “Lack of cashflow is cancerous to your business”. I was grateful and humbled by his story and wanted to share it because I see the same thing with other business owners. I’m an accountant so a lot of business numbers from different types of companies cross my desk daily. What do they all have in common? They don’t have a grasp of their numbers, they think that looking in the bank is a good indication of how they’re doing but lurch from one cashflow crisis to another. Looking at your bank only tells you how you’re doing today, not what’s going to happen in the future. That’s why cashflow forecasts and budgets are so important in most businesses. Your profit might be good, but it’s only part of the picture. You need both good profit and good cashflow if you want to survive and thrive.