Against an uncertain economic backdrop, and with inflation still a concern, conditions are likely to remain challenging for many businesses and individuals alike in the short to medium-term at least.
In light of this, taking time to focus on strategies to improve your business resilience and your ability to bounce back from difficult experiences, could really prove useful.
Good cash flow management for business success
Managing and understanding your business’s cash flow is vital to business resilience and being able to adopt flexible strategies for success.
Cash flow refers to all the money that is coming in, and going out of a business, and it’s important that you are able to interpret what this tells you about the performance of specific products or services, and indeed your business as a whole.
Tips for managing your cash flow
- Run a ‘health check’ on your figures – i.e., your latest profit and loss statement – to check that your income is sufficient to cover any expenses, and to identify where you may need to take action.
- Create a yearly budget; consider points in time where cash flow could be squeezed and where you may be able to make savings to compensate. Be proactive, not reactive!
- Implement robust credit control processes, encompassing payment terms etc., to ensure you are paid promptly. Cloud accounting software can be useful here, with most platforms allowing you to set up payment reminders and/or remittances.
- Don’t leave anything to chance – get into the habit of reviewing the numbers behind your business on a regular basis. Remember, however, your ability to do this is only as good as your accounting and reporting. Your accounting information should always be up to date, and accurate.
- Consider how cloud accounting software could benefit your business. An accounting system matched to your needs should help you to track your finances, extract insight in respect of key metrics and plan ahead.
A few other things to think about…
When it comes to taking action to make your business more resilient, there are a number of other things you might like to think about:
- Review your Budgets and set realistic targets for the rest of 2023.
- Put extra effort into making sure your relationships with your better customers are solid.
- Review your list of products and services and consider whether you could phase out those that are unprofitable or otherwise not essential to your core offering.
Bookkeeping and cloud accounting advisory support
Our bookkeeping, management accounting and cloud advisory solutions are designed to eradicate your frustrations about financial administration, and to reward you with more time to focus on running your business whilst we take care of the paperwork.
We can give you access to better quality management and performance data, help you to track your business’ performance throughout the year, to identify opportunities for tax planning and to see where your resources are being allocated.
Our team will ensure that you understand how you are faring in comparison to others in your field and will provide invaluable advisory support to help you make important decisions and to run your business efficiently, and successfully.
To discuss your requirements with us, or to talk to us about improving your business resilience, contact us today.