Having issues with cash? Here are the next steps.

Having issues with cash? Here are the next steps.

Jo Hands
CASH MANAGEMENT, CASHFLOW, FINANCING

If your business is having issues with cash, it's important to take proactive steps to address the problem before it becomes a crisis.

Here are some steps you can take:

1.      Analyse your cash flow: Start by analyzing your cash flow to understand where the problem is coming from. Look at your cash inflows and outflows to identify any trends or patterns. Determine if there are any particular areas of your business where cash is tied up.

 

2. Prioritise payments: Once you have a clear picture of your cash flow, prioritise payments. Make sure you pay your most important bills first, such as payroll, rent, and utilities. If you can't pay all your bills

3.  Reduce expenses: Look for ways to reduce expenses to free up cash. Cut back on unnecessary expenses, negotiate better prices with suppliers, and look for ways to streamline operations.

 

4.  Accelerate cash inflows: Look for ways to accelerate cash inflows. Offer discounts for early payment or require deposits for new orders. Send invoices promptly and follow up on overdue payments.

 

5.  Consider financing options: If you need additional cash to cover expenses, consider financing options such as a line of credit, factoring, or equipment leasing. Be sure to review the terms carefully and understand the costs involved.

 

6.  Develop a cash flow forecast: Develop a cash flow forecast to help you plan your cash needs and identify potential shortfalls. Monitor your cash flow regularly and adjust your forecast as necessary.

 

7.  Seek professional help: If you're having trouble managing your cash flow, consider seeking professional help. An accountant or financial advisor can help you identify the root of the problem and develop a plan to address it.

 

In summary, if your business is having issues with cash, it's important to take proactive steps to address the problem.

Analyse your cash flow, prioritise payments, reduce expenses, accelerate cash inflows, consider financing options, develop a cash flow forecast, and seek professional help if necessary. By taking these steps, you can improve your cash flow and ensure the long-term financial health of your business.

If we can help you, reach out for a no obligation chat to Jo Hands on 0459826221, or jo.hands@whiteark.com.au

Article by Jo Hands, Whiteark Founder

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