We recently took on a new client who had a hefty sum just sitting in their business current account.
When I asked the CEO what the plan was for that money, he looked confused.
“There is no plan,” he said. “I just like having it there.”
And he’s not the only one.
Plenty of business owners feel more comfortable keeping large cash reserves in the bank. Especially if they’ve ever faced a cash crunch, having that buffer feels safe.
And it’s not just about comfort.
Often, it’s simply not clear what the alternatives are. What should you do with the money? Where should it go? What are the risks?
It can feel easier to leave the money where it is, especially when moving it means dealing with paperwork, setting up new accounts or tying it up for months at a time.
So it sits.
Safe. Convenient. Familiar.
But here’s the problem…
Right now, you are probably not earning any intereston this money — so that cash will be losing value in real terms, thanks to inflation.
What feels like a safety net today could become a slow leak tomorrow.
And even now, there are likely more productive, more profitable places for that money — whether that’s for you personally, or within the business.
Just letting it sit there isn’t a strategy. It’s avoidance, wrapped up in a sense of security.
We always recommend keeping a bit of cash in your account, enough for an operational float. But ideally, the rest of your money should be working hard on your behalf — supporting business growth, creating returns, or giving you more personal freedom.
So what should you do with it?
I’ll explore some of the options in the coming weeks, so watch this space.
But it all starts with clarity.
Before you can make smart, strategic decisions, you need a full picture of your financial situation — now and in the future:
- How much cash should remain accessible
- What can be safely moved or invested
- When you’ll need access to those funds again
Without that visibility, it’s easy to make the wrong move — locking away money you’ll soon need, or leaving it untouched when it could be delivering real returns.
That’s where we come in.
When we manage your cash, we give you that clarity. You will, at all times, have a forward-looking view of your cash flow, as well as a good understanding of your upcoming financial commitments and of your true flexibility.
Armed with that insight, you’ll be able to make confident, informed decisions about your cash — not just for now, but for the future.
If you’d like to explore what that would look like for your business, just email garry@insightassociates.co.uk. Or call our office on 01279 647 447 to set up a consultation with me or with one of our specialists.
Warmly,
Garry
