"PEOPLE run out of cash" is the simple philosophy that Bolton accountant Graeme Sheridan applies to the highly complex world of business and finance.

Mr Sheridan, a partner in the audit and accounts service of Jackson Stephen Chartered Accountants in Bolton, feels that he is dealing with the life blood of any business - money - and he is a firm advocate of good corporate health.

He said: "I wouldn't say that looking after the money is the be-all and end-all of running a business but without good cashflow, a business is going to stop functioning, and it's not pleasant."

And Oldham-born Mr Sheridan saw that unpleasant side first hand when he worked in the insolvency practice of audit, tax and insolvency practitioners KPMG. He also specialised in insolvency at Crawfords in Manchester. He said it was a "depressing experience."

He added: "Insolvency, by its very nature, is when people lose their businesses. In some ways, it can serve as a good grounding for a career in accountancy because it shows you that businesses don't always work out and people can lose everything. You begin to see that there are basic things that have to be done to make a business successful.

"When you see the sort of things that people do that can cause a business to fail, it teaches you a lot about what can make them work."

Mr Sheridan said that it is the common sense practices that are often missing when a company goes belly-up.

"The key is budgeting and managing your cash. So many times, businesses expand and get ambitious, and they don't know where the cash is coming from - long term - to manage the change.

"If you don't know where your cash is coming from, how can you hope to manage your business?

"It's so simple, yet it is a major pitfall. People simply run out of cash." It is a philosophy that Mr Sheridan brought with him to Jackson Stephen. The company was established in 1921 and is now one of the largest independent accountancy practices in the North-west.

The firm has offices in Manchester, Leigh and Bolton, with more than 80 staff and nine partners, serving more than 2,500 clients from small owner-managed businesses to multi-nationals, covering most industry sectors.

Mr Sheridan is clear about the company's role within the local economy. He said: "The company is geared towards owner managers and their businesses, with work concentrating on planning strategies throughout the life of the business, within the context of the owner's personal objectives.

"It is a very vibrant economy here, and we made the decision to be based in the Bolton market."

Outside of work, Mr Sheridan's love of making things tick manifests itself on old cars. With a son who has just passed his GCSEs and who will be driving later this year, it is a useful skill to have.

"I like to fix up old cars and get them working again," Mr Sheridan said. "Sometimes it can be as simple as sorting out a battery. Other times, it can be more complicated, but there is a feeling of satisfaction when you get them going again."

While it would be unnecessary to suggest a second career, the fact that Mr Sheridan has put vehicles ranging from a Triumph Herald to a Lotus back on the road suggests his talents lie in more than one arena.

And it is not only his garden that green-fingered Mr Sheridan is keen to see grow.

He said: "We're looking to double our fee income over the next five years. That would make us the largest independent accountancy in the region. The future we see for our business is to provide outsource solutions to our clients.

"We often find that owner-managed businesses need a full-time financial controller, marketing manager or IT manager, but that they are not really large enough to justify the cost. That's where we come in."