For a business to success you need to be in control of cash, in its management and its forecast so that there I are no surprises, banks hate surprises!

My ex boss would say cash is king and he couldn’t have been more accurate. It is important to take control of cash early on in a recruitment business thereby avoiding the issues that can hit new recruitment consultancy.

By managing the cash it shows that you are in control of your business and the benefit is the banks will see this as a positive, so if you ever need their help and if you do it right and are able to forecast the problem early banks are more helpful.

With software today it is much easier to keep in control and for me it was excel it gave me a very easy way to manage accounts not from an accountant’s point of view but purely from the point of a recruitment business. I was able to tie in the activity that I needed to generate the targeted revenues and calculate the expected payments of the invoices.

Below is the graph I used to manage the cash in and out with one table the forecast and one for the actual.

This was a simple system but worked very well indeed and of course you can edit to your own needs.

Tags: Recruitment Cash Flow

Powered by Qumana