Cashflow management is the monitoring, surveillance, and active management of the actual money coming in and going out of your business. It’s more than what you currently have in the bank, as it also considers the money you are owed by others, any unpaid debts, or scheduled payments you may have.
Additionally, it involves taking actions to maintain the financial health of your business, both now and in the future.
Cashflow management is important all year round, but at this time of the year with annual tax filing deadlines in mind, cashflow management is critical to all businesses. This can be a busy and potentially stressful time for many business owners, however effective financial forecasting, cashflow management, and early tax planning can help reduce and relieve the stress.
By managing cashflow effectively, you will be able to keep your business secure and profitable, while providing the opportunity to forecast investment opportunities, establish company spending and build up an emergency cash fund. Being prepared for all scenarios that may occur throughout the year for your business is vital.
AIB’s Cashflow Solution for your Business: PromptPay Finance
Paying significant annual bills requires planning, and AIB's cashflow solution, PromptPay can support your company to conserve cash for expected and unexpected expenses. With PromptPay, your business can spread large one-off expenses, such as your annual tax bill or pension payments across six to eleven months.
To gain a better understanding of PromptPay, we posed a couple of questions to AIB’s David Cotter, Business Advisor, on why he recommends PromptPay to his business customers.
Can you tell us a little bit about PromptPay?
PromptPay is an effective and cost-efficient way to help businesses and SME customers to spread large annual bills into manageable monthly repayments. By availing of the facility, it protects cashflow and provides certainty for our customers on repayments over an 11-month period. It also ensures customers can plan/budget for the year ahead without the added requirement to have significant cash reserves available to pay large annual bills in one payment.
Why do you recommend PromptPay to your customers?
PromptPay helps our customers in protecting cashflow and budgeting for their other offerings. It helps to ensure that they have a manageable monthly repayment at a fixed rate. It is especially beneficial to businesses who operate on a seasonal basis. The pressure on cashflow for these businesses can be quite evident, who without PromptPay, may see cash reserves quickly diminished due to paying out large one-off bills in a lump sum payment. PromptPay enables these one-off payments to be spread across six to eleven months.