ashflow is the life blood of any business. With little credit available from the banks preserving and the releasing of cash in a business has become a key objective for many entrepreneurs and home businesses, says Paul Farrell, Partner, W.O. McGrory & corp the Drogheda based Taxation Services Accountants in Drogheda firm.Paul explains [*CO]‘For any businesses, cash has often been a concern. The advantages of effective money management and cost reduction are clear, but never way more than right now.
‘We’ve compiled a list of five easy methods to help businesses unlock cash in these recessionary times. Some may appear basic common sense, but shockingly can frequently be overlooked for far more complicated cash saving initiatives.’
Customers – Keep in more regular touch with your clients. Pay special attention to those already outside agreed credit limits. Make sure that overdue accounts are chased quickly, but fairly. Consider offering improved prices or bulk rebates in order to reduce stocks without damaging the trading relationship.
Suppliers – talk to them, discuss extending payment terms. Whilst they are probably going to be under stress too, if you are a reliable purchaser with a good payment history, they may be prepared to momentarily relax payment terms.
Bank Financing – Keep talking with your bank. They don’t like surprises so keep them informed and do not be afraid to discuss further funding if you’ve a plan or an immediate need, but always think ahead;
System Review – do you know how your business is essentially run from starting to end? Did you know what’s going down with each penny in your business, or more importantly, that you’ve got the capability to find out. A good accounting system will pay for itself in almost no time. There are currently fantastic deals on accounting software to assist in this regard.
Costs/Overheads – are there areas of the business that excess fat that may be trimmed? These may not be right away clear but a review of the business can identify opportunities that won’t adversely impact performance ;
Paul Murray is an accomplished web entrepreneur who has launched YouTractor.com which offers 1,000 of john deere used tractors and massey ferguson used tractor