Cash flow management is critical at any stage of a businesses life, but even more so during uncertain times.
We are all going through or have met with uncertain times, we’ve felt the concern of global shutdowns, falling economies and disrupted business plannings.
As a small business, you need to be extra cautious, plan and manage your cash to keep your operations running, while ensuring financial stability.
Cash flow management has become extremely important, given the budget lifts and reduced spending.
The following tips will help you manage your cash in the most efficient way.
Daily Forecasting
As the owner of a SME business, you need to tread cautiously when it comes to managing your finances in uncertain times. If you are to survive and keep your business going, we suggest you create daily cash flow projections. Your financial data could be the best source to do this, and doing so helps you gain an understanding of how your business will perform over the next 10-12 months. The projection report lets you see through your firm’s revenues and expenditure, allowing you to plan your cash accordingly.
An experienced accounting and taxation firm can manage your company finances, and ensure you are left with enough cash to carry on your operations smoothly.
Efficient House-Keeping
Even though your finance providers are aware your business is impacted and cash flow disrupted, they want you to be feasible and continue your normal operations/transactions. As far as possible, keep your business organized. Disorganization can hamper your business causing unnecessary problems, making the situation even bad.
As mentioned earlier, forecast regularly and study the projections. Maintaining precise financial information helps you identify potential problems, enabling you to deal with them before they become a cause for worry. Such information also provides scope to plan effectively, allowing you to manage your cash in a rewarding manner.
Incorporate New Technology
We are living in the era of internet and smart technology, which have literally made lives easier. Software is now developed for every industry operation, while they are designed to be extremely user-friendly. Further, cloud-based software can be accessed from anywhere, on any device making them a reliable option for business owners.
What does incorporating technology mean for a business owner?
- Once a job is complete, an invoice can be raised instantly and emailed to the customer. This email can also contain a link to a secured payment platform that allows the customer to make payment quickly and safely.
- Comparison websites help understand and maintain the lowest cost for company expenses such as insurance, lighting and heating etc.
- You can save time and money by conducting virtual conferences and video calls.
- You can stay connected and carry on business operations, even when on the move. The world we are living in is highly competitive and demands you to stay connected and be available all the time. Technology has made this possible. This means, you can work anytime, from anywhere and enhance your cash flow.
The above tips, when practiced, help you get more clarity about your business in uncertain times. They also help you plan measures to improve and manage your cash flow.
Ainsworth Accounting Solutions are here to help you with any of your business accounting needs and we’d be happy to speak with you. Simply contact us today to take the next step!
