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Restauranteurs know it. Grocers know it. Farmers know it. If you don’t get your stock moved on - it goes off. That’s a fact of life. There’s also something else that goes off in business if not managed properly – your cash flow.
Given the perishable nature of food; manufacturers, retailers and restaurants need to turn food stock around quickly and efficiently, or they loose it in spoilage. So they already have efficient systems in place for using their expensive produce. They keep their food assets turning into liquid cash, before those assets start turning into a liquid themselves, and ooze down the cold store floor. As any good maitre’d will tell you, if the cash doesn’t flow, the meals don’t grow.
That’s particularly important right now, as some reports say nearly 6,000 UK restaurant firms are trading on the edge, thanks to falls in sterling, a rise in the cost of labour, and flat-lining disposable incomes. The tighter the budget - the tighter the squeeze on eating out. With that sort of menu, it makes perfect sense to be serving up the cash as quickly as you serve up those meals.
We’re not exactly Saturday Kitchen Live material here at Springfords. We get by at the hob, but we’re not in the running for replacing James Martin on a permanent basis. Our forte, our pièce de résistance, is an elegantly served main course of exquisitely prepared management accounts delicately produced from our advanced outsourced bookkeeping skills, flavoured with advice on debt collection procedures and managing your working cash flow.
Good accounting though doesn’t mean over cooking your suppliers, even though some in the food industry are feeling decidedly overcooked. According to research by the Asset Based Finance Association, some small food manufacturers are waiting almost two months to receive invoice payments. That’s a long time between seeing the menu and getting your aperitifs. Abfa says more needs to be done to reduce delays. Springfords say let us get to work with you before payment becomes an issue, and we’ll help you find your way to a less lengthy delay.
If you think your cashflow has stalled to the speed of a treacle pudding spilling in a freezer, you should be doing more with your money now, and not waiting until the kitchen is about to close. Permanently.