Making sure that your open bills and invoices have accurate expected dates is really important for maintaining a realistic cash flow forecast.
We recommend you update expected dates in Float at least once a week.
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Do you have cash management processes in place?
If you are proactively managing your cash, then keeping Float up-to-date should be fairly straightforward.
As you gather information about when bills and invoices will be paid, you can add those expected dates either to your accounting software or to Float. This information will show the impact those payment dates will have on the business’s cash balance.
So when you introduce Float to your cash management workflow, you not only continue to control your cash in-flows and out-flows; you get the added benefit of being able to see how payment dates will affect future cash balances.
If you do not have cash management processes....
Any business advisor will tell you that it’s really important to be proactive about cash management in order to minimise stress and maximise business opportunity.
Also, the more proactive you are about cash management, the more accurate your Float cash flow forecast will be.
We highly recommend you speak to your accountant about best practice cash management processes. In the meantime, you can check out 10 tips for managing cash flow from the Guardian and this very practical article about how to set up a credit control system.