Business Sense: Cash is King
Posted on 28th April 2022 at 09:12
Many businesses are feeling the pinch with rising overheads and supply chain issues squeezing their margins. We all need to find ways to improve our cash flow and reduce our business costs to combat the pressures we are facing.
We are supporting many businesses through this difficult post-pandemic period, providing a helping hand and guiding light through a range of challenges to find a way out and ease the pressure on profit margins. So, we thought it might be useful to share some of this advice with you and remind you that if you need support, we are here to help you too.
Firstly, create a forecast
The first important step is to create a forecast of your cash flow and project where you think your business is heading. We suggest that you produce a forecast for a minimum of six months as this will assist you in planning and focus your plans.
Once you have a forecast in place you should examine it to see if you can make improvements then create an action plan to deliver these savings.
And don’t forget you are not alone in this, we are here for you and can help you understand your figures, create a forecast and find ways to improve your situation.
Secondly, take action
There are three key sets of actions that can help you to increase the cash flow in your business, these are:
1) Cost reduction – finding ways to reduce the costs in your business is an important way of increasing your cash flow and protecting your margins. We have a blog called 7 Easy Ways to Cut Down Your Business Costs which can help you with this.
2) Get paid on time – ensuring that your customers pay you on time is another way of maximising the cash flow in your business and our blog called How to Ensure Your Invoices are Paid on Time explains how to do this.
3) Pay less tax – we all want to pay less tax and it is possible if you plan ahead and do some tax planning. Our blog on How One Company Saved over £39k in Tax with a Few Simple Steps shows how one of our clients managed to achieve great savings from planning ahead on their tax with us.
These are just some pointers, if you feel that you want a more detailed review of what your business could do to improve its profit margins get in touch to arrange a business review. Many clients are surprised after their first business review what a difference a new perspective can make and how big an impact we can make in helping you create a realistic and achievable plan of action.
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