Schedule your Purchases
Cash Flow Management
Timing is everything in cash flow management and while most organisations (and people) will manage their balance by delayed payment few ever consider delayed (or timely) purchase. Opportunities to schedule your purchases include:
- Understand your suppliers invoicing schedule and if they invoice say at the end of the month, make your purchase in the first week of the next month.
- If you purchase on credit card plan your large purchases for just after the statement date.
- Minimise large purchases in the month prior to quarterly tax payments falling due to give you more cash capacity in heavy months.
- Buy in quantity where possible; remember short orders usually attract long prices.
(© Profit Advantage #37916)
