24 Apr Ways to improve cash flow in 2022
2022 has not been the best year so far for most businesses.
Businesses are still struggling with the effects of the coronavirus pandemic, which led to less foot traffic, low spending among consumers, and the current employment crisis. When these were starting to be well managed, inflation became another issue.
With all these challenges, businesses struggle to have proper cash flow. Here’s how to keep your business cash flow healthy in the face of several crises.
Use any extra government support you can find
The UK national government, following the pandemic, provided several incentives and support for businesses for cushioning during the lockdown. The support came in tax reliefs, paying of employees, business rate reliefs, and direct financial support for the businesses.
The small business start up support exists for a reason, and you should go for all that you qualify for.
Cut unnecessary spending
Your company will have enough money if you cut any unnecessary spending. For example, you can do this by researching new suppliers with better deals, hiring fewer people, and seeking leaner ways of operation.
To establish where to cut your spending, review the value all your subscriptions and expenses add to the company.
Have an effective invoicing policy in place
Stay on top of your invoicing policy to ensure the company receives all its revenues. You can do this by tightening the credit control through shorter payment periods and asking for higher down payments. You can ask for a longer payments time, no down payment, and instalment options on the creditors’ side.
Do a better job of reporting and forecasting
As you seek ways to improve your cash flow, you also have to keep track of everything. Ensure proper reporting to avoid the risks of oversight, overextension, or blind spots. Luckily, you only need working cloud accounting software to manage the cash flow reports.
At the same time, you need reliable forecasting to help you plan and manage your business needs. You are better off working with a qualified accountant to help with the reports and forecasting.
Are you looking to improve your business cash flow in 2022? Look no further than SQK Accountancy for accurate financial reporting and forecasting for your business. Contact us to see what we can do for you.