Pictured above: Krystle Brough.
In uncertain economic times, strong cashflow management can be the difference between surviving and thriving. Krystle Brough, Client Director at Tax Traders, shares three key strategies to help SME owners take control of their finances.
1. Strengthen communication with debtors
Ensuring consistent and proactive communication with debtors is crucial. Make sure you’re following up regularly and being persistent – your voice should be the loudest when it comes to collecting outstanding payments.
2. Tighten up your balance sheet
Managing both incoming and outgoing cash effectively is key. Consider negotiating repayment plans for debts, invoicing earlier than usual, and ensuring payments are collected as quickly as possible. The goal is to maintain steady cash inflows while carefully managing outflows.
3. Test and adjust your forecasts
Forecasting is essential, but it’s just as important to test those forecasts against actual results. Regularly update your projections to ensure they reflect real-time business performance. If needed, adjust your strategy to stay on track.
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