Hi there fellow business owners,
I want to share a quick video to help you improve the cash flow in your business. One of the main causes of poor cash flow relates to how and when money is spent in your business—specifically, the accounts payable process.
1. Set Spending Budgets
The first thing every business needs to consider is whether you have spending budgets in place. It’s best practice to establish these each year and regularly review and reset them. Budgets provide guidance on where and how you should spend your money and help you quickly identify when things are going off track.
2.Review Supplier Terms and Pricing
Next, take a close look at your suppliers. When was the last time you reviewed their terms of trade? This includes payment time frames, early payment discounts, and any consequences of late payments. Maximizing available discounts can significantly improve your cash flow. Also, if you find that you’re struggling to pay suppliers on time, it’s crucial to look at other areas of your business to improve cash flow and maintain healthy supplier relationships.
Additionally, have you recently evaluated your suppliers’ pricing compared to their competitors? This is another key strategy to ensure you’re getting the best value and maintaining strong cash flow.
These are just a couple of the strategies we explore in our Cash Flow and Profit Improvement meetings.
Watch the video here where I talk about the Causes of Poor Cashflow
Mick
I’d love to help you achieve your business dreams, please don’t hesitate to contact me;
07 5646 4050
mick@ignitionaccountants.com
Book a call for a complimentary Proactive Accounting Meeting to discuss your accounting profitability
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