Firms 'should consider cash flow management approach'

Fri Jan 22 2010 15:20

Introducing cash flow management software could help a significant number of small firms get to grips with their finances, it has been suggested.

The case for businesses to have cash flow management software in place could be highlighted in a new study.

Figures released by Business Link show that just under half of small and medium-sized firms do not have a system to help them chase up unpaid invoices.

Meanwhile, 29 per cent of those companies questioned lack an effective form of cash flow management.

Senior advisor for Business Link Matthew Perkins states: "Sound financial management should be the bread and butter of every business, especially during these tough economic times."

He adds that having an understanding of how money they have coming in and how much is owed can help firms to stay "in the black and head for growth".

And the use of ERP software to help keep on an eye on money management appears to have paid off for the Virgin Islands government, as finance commissioner Angel Dawson Jr recently told TMC News that implementing such technology has helped to improve its payroll processes.