A lack of cash is the number one killer of small businesses and the statement "turnover is vanity, profit is sanity, but cash is reality," has never been more true than it is today. That's because in a really tough economy, customers will pay you even more slowly and suppliers will want you to pay them more quickly.

These guidelines have really assisted our clients and has seen them achieve hugely improved cash flow in just a few months. By following these steps, your business will be able to cope with the tough economic times and you'll have all the processes in place to be one step ahead of your competitors when the economy starts to improve.

1. Do some background checks on any new customer. It's too easy to do some work for a new client, only to find out that they can't actually afford to pay you. Most companies only find out that a customer is a bad payer when it's much too late. Make as many checks up front as you can and ask for a deposit if you are in any doubt.

2. Be proactive about credit control - Too many companies find out too late that a client can't or won't pay. Be proactive and check with the client that the have received the invoice and they have no issues. Then chase a week before the due date to confirm when payment will be received.

3. Keep cash flow forecast current so you know your company's financial position at any given time. You don't need expensive software, just a simple spreadsheet where you can list all expected income from sales etc and and then all outgoings that you'll need to make over the next 12 months like salarys, rent, PAYE etc.

Our clients have definitely found this advice invaluable, and I believe you will too.

Want to find out more about improving your cash flow? Visit Accountancy Extra for the best accountants in Leeds and the best accountants in Halifax.