Most business owners immediately think of the bank or loans when they’re short of money. But there are many more resources you can tap before you ask for that expensive overdraft or for an overdraft extension. You can often free up funds from within your business by re-examining your business systems, and these funds might in themselves be sufficient for your immediate needs.  Please contact our office and seek guidance before making any changes to your business.

Reducing expenses can be achieved through cutting unnecessary costs, negotiating better deals, and finding cost-effective solutions.

Increasing revenue can be done by expanding the customer base, increasing sales, and offering new products/services.

Implementing efficient invoicing and payment systems streamlines the process, reduces errors, and ensures timely payments. This can include using software for invoicing and automated payment reminders.

Offering early payment discounts incentivises customers to pay sooner and can improve cash flow.

If feasible, increasing prices and upselling can increase revenue without necessarily increasing costs.

Negotiating better payment terms with suppliers, such as longer payment schedules, can improve cash flow.

You need to regularly review your stock levels, your stock turnover rates and your purchasing policies. Can you free up money by reducing stock? What about moving out of the slow-moving lines or having a quick sale of the slow-moving stock?

Planning ahead and forecasting cash flow helps identify potential cash flow shortages and allows for proactive planning to mitigate them.

Taking advantage of tax incentives and write offs, such as tax credits and deductions, can help reduce tax liability and improve cash flow.

Using technology to automate financial tasks, such as bookkeeping and financial reporting, can increase efficiency and accuracy, freeing up time and improving cash flow.