Keep track of your cash flow Ö the success of your business depends on it

Keeping a strong and steady flow of cash running through a business is critical to any firms long term success, enabling the company to pay its staff on time, fulfill new orders, purchase raw material and even new equipment.

But maintaining a healthy cash flow is not always as straightforward and easy as many owners and managers believe.

To help entrepreneurs improve their cash flow management Bibby Financial Services has developed the following 10 top tips:

Credit check your customers ñ always run a credit check before entering into any business relationship. Aim to only trade with companies that you know are not only creditworthy, but also have a good track record of paying their bills. It may also help to set your customers realistic credit limits

Be clear with Ts & Cs ñ if your business terms are seven days or 30 days, make it clear. Set out your terms of trade early on. Include them with order confirmations and invoices

Always check your invoices ñ avoid invoices being returned by addressing them to the correct department and a named individual if possible, including details of the job, a purchase order number, the correct amount, your business terms and a date

Send that invoice, donít put it off ñ issue invoices immediately on completion of the job and follow them up with a phone call to check if theyíve been received and that all details are correct

Be strict with credit control ñ donít be afraid to adopt a follow up system that involves issuing statements and reminder invoices. Call your customers if their payments are late

Pay attention ñ are your customers acting differently? Are they suddenly hard to get hold of? Are they sending you post-dated cheques? This can often be a sure sign that something is happening. Remember ñ forewarned is forearmed

Take stock ñ plan ahead and donít hold too much stock. Holding stock costs money. Investigate the possibility of more frequent deliveries from suppliers so that stock levels can be kept to a minimum

Manage your suppliers ñ shop around to make sure you are getting the best deal. Also negotiate longer credit terms and volume discounts to free up more cash to reinvest in the business

Keep people in the picture ñ remember to communicate with all the key people involved in your business including your bank manager, suppliers and customers. If you tackle issues early on they donít develop into business problems later

Keep the cash flowing ñ review your funding to ensure that it is still meeting the needs of your business. It may be beneficial to take a fresh look at the alternative solutions available. Invoice Finance is one such solution that can guarantee your business has a flexible supply of working capital

David Robertson, chief executive of Bibby Financial Services, said: ìThese tips on keeping cash flowing may seem obvious on reflection, but many companies get bogged down and forget to apply these simple rules. Remember you may have won the order but getting paid is just as important.î