What does this post look like?
Here we track the average time you take to make payment on your bills.
Why do we track this?
Flow tracks your "payment days" that is the time between invoicing and payment, we do this for both bills and invoices to help you understand your cash flow in and out.
- - - - - -
What to do with this information?
This is best used in conjunction with your customer payment days.
Comparing them is a great way to look for quick cash flow wins! If your paying bills in record time but your customers are sluggish when it comes to paying you, that can lead to problems.
You can always have a friendly chat with both customers and suppliers and look to them for help with making your payment days more even.
- - - - -
Understanding the time you are taking to pay will help you manage cash flow.
Sometimes you have to pay late to avoid running out of cash, but its best to keep your suppliers in the loop to avoid upsetting them.