Invoice Manager has become Cash Manager
You may have noticed we recently made a small change to the app, changing the name of “Invoice Manager” to “Cash Manager”. It may be just a small name change, but we feel it is a much better description of the task this feature performs.
What is Cash Manager?
Cash manager is a feature that lists all your upcoming bills and invoices along with their expected dates. You can then model your short term cash flow. You can answer questions like:
- How many invoices do I need to collect before I can pay that big bill?
- What if a customer defaults on their invoice(s)?
And you can make your forecast more accurate. For example, you can match the expected dates of all your bills to when you do your payment runs…
Why is Cash Manager Important?
Short term cash management is extremely important, particularly for businesses running a lean operation because it means they can honour their commitments without getting into financial hot water.
There is a common misconception that cash management is only for businesses that are in trouble. This simply isn’t true! Whilst it is wise to have a buffer of cash to get through tough times (see our 4 Tips for Better Business Cash Management), it is absolutely possible to be sitting on too much cash…
- This is an interesting article about why having too much cash is a problem for big business.
- And here’s a great piece on why it is a huge financial risk for SMEs to have too much cash on hand.
- Finally, here’s a cracking article on Forbes.com with very practical advice on doing cash management.