If you are a business owner preparing for the impact of this outbreak to your business, here are some cash flow management tips to help your business survive this pandemic:
Review and Adjust Budget
Review and regularly adjust your budget. You need to keep in mind that there will be slowdowns and reductions in revenue, so you should assess your ability to pay your bills. Make use of cash flow forecasts to see how well your business can keep up with the current situation. Insights from these forecasts can also help you make better strategies for your business.
Up-to-Date and Accurate Financial Reporting
Ensure that your financials are kept up-to-date so that you monitor profitability, overheads, stock levels, and debtors on a timely basis. Having these financial insights will enable you to make informed decisions for your business. These will also tell you your current financial position which is a good vision to have as you review and update your business plan.
Up-to-date financials are also essential if you are considering to apply for financing options. If your business lacks this, it’s time to find an accountant to help you.
As you review your budget, assess what you can cut off from your expenses. Ask if you really need all of your costs at the moment, and if not, consider temporarily or permanently stop it. If in the case you can’t cut any of it, consider reaching out to your suppliers and vendors to work out other ways to slow down your bills like asking for extended payment agreements.
Do Your Tax Obligations
We might be experiencing business slowdowns, but this shouldn’t mean that you will stop doing your taxes. Tax obligations should still be done to avoid unnecessary penalties and avoid more headaches in the future. You can ask your accountant to help you be on top of your taxes.
If you need help managing your cash flow and need assistance with other accounting procedures, contact us today at email@example.com or at 8-809-6463.