The Business Exchange Bath & Somerset Issue 8: Summer 2018 | Page 15

CASH IS KING Purple Lime say “Cashless is King!” Use the latest technology - our tip for keeping on top of cash flow... Cash flow and its importance in keeping a business healthy, thriving and growing is something accountants will discuss with their clients daily. The team at Purple Lime, which takes a fresh approach to accountancy, is urging business owners to consider the many ways of using modern technology to manage cash flow. Oli Thomas, co-founder of Corsham-based Purple Lime said: “Embracing available technology helps money to flow seamlessly and smartly through the business making it more efficient and effective. Cashless is rapidly becoming king – more and more businesses are stating they prefer payment by card. It makes life much easier for the smallest of businesses. For example – if someone is interested in your product or workshop – they can pay there and then. Done. “This doesn’t mean there should not be a personal touch – it simply means, making life easier for everyone and keeping on top of your business’s financial numbers in real time.” Purple Lime’s top tech tips are: • Automate systems – use tech to do the chasing, collection of payment (DD), online or on-the- move payment services (Stripe for example) • Utilise new tech to benefit from areas like insurance on sales invoices as they are raised or apps to assist with credit control e.g. Chaser • Quote effectively and clearly before work commences e.g. (Xero accounting software handles quotes well) • Profile your potential customers – credit checks etc where necessary e g. (Satago) Their top personal tips are: • Ensure sales, marketing and ops collaborate with the credit control team • Have strong contracts and T&Cs, ensuring these are fully understood by customers • Build relationships so customers are more inclined to pay • Be consistent; friendly, firm and fair. Angela Ashworth, co- founder, said: “Businesses can be profitable but cash is a separate item so the relationship between profit and cashflow must be understood “Monitoring is crucial as positive cash flow creates a more valuable company to investors and or shareholders, not having to “battle” cashflow means time is spent on the right areas of operations, cash is required to fuel/fund growing businesses as there is always a delay between an increase in “trade” and an increase in the bank balance.” Purple Lime suggests preparing cashflow statements under three main categories: • Operating cash – day-to-day • Investment cash – where surpluses are invested for expansion purposes for example. • Finance cash – dividends, interest/loans etc The team at Purple Lime, based out of Hartham Park in Corsham was set up almost two years ago by co-founders Angela Ashworth and Oli Thomas – and three other accountants have since joined the company. They support businesses in the role of an outsourced finance department and cover all areas of accountancy, financial management, payroll, VAT returns, book-keeping, tax compliance and anything to do with the financial health of a business. Purple Lime is a silver champion partner with Xero. If you believe the need for ‘once a year’ compliance is out of date – call the team for a no-obligation conversation by emailing: [email protected] or call 01249 691360. PLANNING YOUR PERSONAL FUNDS FOR THE FUTURE By Jon Rolfe, partner at Epoch Wealth Management There has been much discussion on the subject of cash flow modelling for your business’s prosperity, but have you considered looking at it for the benefit of your personal finances? The reality is that many business owners who are building towards some sort of liquidity event do so with very vague ideas as to what their “magic number” is.