Course description

A small business can make a profit and still run short of cash: a big customer pays late, the VAT bill lands in a quiet month, or January brings tax, rent and a slow week all at once. This course shows you how to see a cash crunch coming weeks ahead and what to do about it, in plain English and with no accounting background needed.

You'll build a 13-week cash flow forecast and a 12-month forecast with working formulas, plan for VAT, Self Assessment, Corporation Tax and PAYE, get paid faster, manage what you owe, and keep a buffer. You'll also learn the warning signs that a business is in trouble and where to get free, confidential help. It's the natural next step after Business Numbers for Beginners.

There are 10 sections and 50 written lessons, each with a worked example and a short task to try on your own figures. You follow Heloise, who runs a small joinery company in Bridlington, and Karim, her new part-time finance admin, as they build their first forecast and steer the business through a tight winter. Every section has a practice pack with a worksheet, example answers and a cheat sheet, plus forecast spreadsheets, a tax pot planner, credit control letters, a supplier terms tracker, a borrowing cost comparison and a cash warning checklist.

What you'll learn

• Cash, profit and why businesses run short: why a profitable business can still run out of cash, a cash flow statement in plain words, and a snapshot of your cash today.
• A 13-week cash flow forecast: a weekly spreadsheet with working formulas, realistic arrival dates for receipts, every payment, and the lowest point.
• The 12-month forecast: an Assumptions sheet that drives the numbers, seasons, big and irregular payments, and sense checks.
• Scenarios and rolling forecasts: worst, expected and best cases, what-if questions, actual against forecast, and using the forecast to decide.
• Tax timing and HMRC: a tax calendar and tax pot for VAT, Self Assessment payments on account, Corporation Tax and PAYE, and what to do if you can't pay on time.
• Getting paid faster: clear invoices, payment terms and deposits, a credit control routine, the late payment law for business debts in general terms, and customers who won't pay.
• Payables, stock and work in progress: supplier terms and payment runs, talking to suppliers, stock, part-finished jobs and the cash conversion cycle.
• Buffers, costs and pricing: a cash buffer, a cost review, cutting costs with care, pricing and cash, and taking money out of the business.
• Funding, warning signs and getting help: matching finance to the need, the true cost of borrowing, high-cost borrowing warnings, early warning signs and free, confidential help.
• Final project: a 13-week forecast with a worse and a better case, a cash action plan and a one-page summary for your own business or a seaside kiosk case study.

Who it's for

Small business owners, sole traders, partners and directors of small limited companies in the UK, and anyone new to looking after the money in a small business, such as an office or finance administrator. You'll need a spreadsheet app and your own bank statements, or you can use the practice figures throughout.

What this course is, and isn't

This course gives general information about managing cash flow. It isn't financial, tax, legal or insolvency advice for your business, and it doesn't recommend any lenders, software or brands. Rules, rates and dates change, so check GOV.UK and talk to your accountant or a qualified adviser before you act. The businesses and people in the course are fictional.

What will I learn?

• Explain why a profitable business can run short of cash, and read a cash flow statement in plain words
• Take a snapshot of your cash position today, including overdraft headroom and money owed in and out
• Build a 13-week cash flow forecast in a spreadsheet and find the lowest point and the weeks below your cash floor
• Build a 12-month forecast driven by written assumptions, with seasons and big or irregular payments
• Compare worst, expected and best cases, answer what-if questions and keep a rolling forecast up to date
• Plan for VAT, Self Assessment payments on account, Corporation Tax and PAYE with a tax calendar and a tax pot
• Get paid faster with clear invoices, sensible terms, a credit control routine and, for business debts, the late payment law
• Manage supplier payments, stock and work in progress, and work out your cash conversion cycle
• Build a cash buffer, review costs with care and understand the true cost of borrowing, including high-cost borrowing
• Spot the warning signs of cash trouble, know where to get free help, and write a cash action plan

Frequently asked questions