‘Cash Is King’ advice at Beacon breakfast

‘Cash is King’ in these challenging times, a top accountant told visitors to a business breakfast in Bedford.

By The Newsroom
Tuesday, 12th April 2011, 4:23 pm

Jeremy Tyrrell, Head of Corporate Services at Keens Shay Keens accountants told the gathering that cash flow is the biggest problem facing small and medium size entrepreneurs (SMEs).

Jeremy entertained people at the Business Beacon Breakfast at Bedford College’s Skyline Restaurant in early April with a easy guide to a “cash conversion cycle”.

It highlighted how failing to invoice on time and allowing clients too much time to pay could lead to a painful “credit crunch” in your bank account - not a good idea in the current climate where banks are reluctant to extend overdrafts.

Jeremy said: “The most successful and, on paper, profitable companies can go under if they don’t invoice as early as possible and maintain a watchful eye on their own bank balance.”

“Giving people credit is like loaning them money - ask yourself do you trust them? And what are your terms of payment on invoices you send out to clients - if you do a job on the 1st of the month and don’t invoice until the 30th and then give them 30 days to pay - you are in fact waiting for the money for 60 days.”

Jeremy and his organisation are sponsors of the Business Beacon run by Pam Woods and Jon Hillier, pictured here.

Jeremy said: “Business Beacon is a positive opportunity for businesses to take their networking and lead creation to a new level.

“By focusing on the support and contacts that businesses need, creating an environment where that support can be shared and contacts made and providing expertise across a range of business related content, businesses will find the skills, support and opportunities to ensure growth in 2011 and beyond.”