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Tips on how to Optimise the Cash Flow of Your Business


Regardless of the season, cash flow is an essential to keep your business going. When running a business, you need to get the right materials you need in the right quantity to give to your customers, if you are unable to get these materials in the colder months make sure you stock up, so you are able to keep working through Winter. To optimise your cashflow follow these tips!

 

Raising your Revenue

Revenue raising isn’t the ultimate solution to improve your cashflow, it’s just a piece of the puzzle. Other key actions to improve your cash flow is to implement cost-cutting measures to improve your accountancy procedures

Review your Expenses

It’s surprising how much you can save if you think about how much you’re spending in certain areas. Do you know whether you are buying you are buying bulk on a daily basis? This might be a cheaper option if you’re not!

Review your Staffing Levels

When you’re recruiting staff, think about whether you need a permanent member of staff or a contractor.

Accountancy Procedures

A starting point for this is to implement some credit controls and enforce the rules you would like to set. If you experience late payments then it might be good to consider a form of incentives for earlier payments like a discount, as well as an incentive you could also think of a penalty to implement for late payments like adding on interest. Moves like this can encourage your clients to pay on time or even early.

Another way to improve your accountancy procedures is to review a variety of practices like tax returns, are there government schemes available to help with the pressure of some taxes? There are many more key questions you need to ask yourself.

Plan and Forecast

You might benefit from taking time to plan and forecast for not only your future needs, as well as your present ones. Review your sales pipeline and planned expenses to help align with your needs and what you’ll bank.

Cash Flow Problems can be Resolved

Even though they are a nuisance, cash flow problems can be resolved if you take the right steps. Examine processes, procedures, plans, models, just everything that contributes to your overall business model, to understand it fully you can break it down into bite size chunks. If you do this is will make it easier to identify positive changes that will help you allocate your funds and optimise the cashflow of your business.

Added: 13 Sep 2018 12:52


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