Keep your cash flowing – and who to call if it isn’t
So, you’re back trading again after lockdown. Finally, you’re able to return to earning and cover those household bills. But, are your debtors paying you? Can you afford to cover your household and company bills all at once? Is that GST bill going to be placed to one side?
Keeping a tight rein on cashflow is an obvious ‘solution’, so, here are some tips below for how to do this.
- Monitor stock levels:
Holding too much stock will tie up cash and increase storage and insurance costs. Practising good stock control will keep stock at efficient levels.
- Manage accounts:
Follow up on overdue accounts. Managing debtors and having good credit policies will keep your cash coming in.
- You may also be able to negotiate longer payment terms with your suppliers. If you can get payment from your customers before you pay your suppliers, you will not be out of pocket.
- Review banking products. Using the right banking transaction products can have the money in your pocket sooner. Consider a mobile eftpos device or investigate services to take payments over the phone or online.
- Increase income:
Review your pricing, use an advertising campaign or improve your customer service to see if you can increase profits. You may also want to consider growing your business.
- Reduce overheads:
Think about reducing staff overtime and controlling overheads. Make your business more environmentally friendly and you may reduce costs such as power and water bills and minimise wastage. Remember to clearly communicate your policies on these items to your staff.
You will incur tax debt by prioritising other bills over tax however – these are not so easy to address. The longer they are left, the more interest and penalties mount up.
Thankfully, we have a solution for that too. Our experience, qualifications and knowledge make us ideally placed, not only to solve your tax arrears, but to support you into better trading and a more stable future.
Call us today on 0800 706 960 for a free, initial consultation.