ashflow is the life blood of any business. With some credit available from the banks preserving and the freeing up of cash in a business has become a key objective for many entrepreneurs and home businesses, asserts Paul Farrell, Partner, W.O. McGrory & company 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 more so than at the moment.
‘We’ve assembled an inventory of 5 easy paths to help companies unlock cash in these recessionary times. Some may appear basic common-sense, but amazingly can frequently be overlooked for far more complicated money-saving initiatives.’
Customers – Keep in more regular touch with your customers. Pay particular attention to those already outside concluded credit limits. Ensure that overdue accounts are chased quickly, but reasonably. Consider offering improved prices or bulk discounts in order to reduce stocks without damaging the trading relationship.
Suppliers – talk to them, discuss extending payment terms. While they are likely to be under pressure too, if you are a reliable buyer with a good payment history, they might be prepared to momentarily relax payment terms.
Bank Financing – Keep conversing with your bank. They don’t like surprises so keep them informed and do not be afraid to debate additional funding if you have got a plan or an immediate need, but always think ahead;
System Review – did you know how your business is essentially run from beginning to end? Did you know what’s occuring with each penny in your business, or more importantly, that you have the ability to find out. A good accounting system will pay for itself in virtually no time. There are now excellent deals on accounting software to assist in this regard.
Costs/Overheads – are there areas of the business that excess blubber that may be trimmed? These may not be straight away apparent but a review of the business can identify opportunities that won’t negatively impact performance ;
Paul Murray is an recognised web entrepreneur who has founded YouTractor.com which offers 1,000 of used semi tractor and used farm tractors for sale