Cash is the oxygen that enables a business to survive and prosper and is the primary indicator of business health. While a business can survive without sales or profits, it will surely die without cash. For this reason, the inflow and outflow of cash needs careful monitoring and management. Poor cash management is the main reason for business failures. However, managing cash flows is the most difficult task for the entrepreneurs during their growth stage and it can become a nightmare if they are themselves expected to manage it.
| Outsourcing your bookkeeping to us will ensure a better cash flow management for your company. We help you plan for the unforeseen eventualities that nearly every business faces. The ability to maintain and regularly update your accounts could save you and your business from shutting down.
| | | We help you achieve the following :-
- Make monthly/bimonthly cash flow projections;
- Know when, where, and how your cash inflows and outflows would occur in the medium to long term;
- Timely recovery of assets and payment of liabilities;
- To plan the purchases and expenses in such a way that they are procured/incurred just in time;
- Planning the best resource of financing the business and using the finances in the most appropriate manner;
- Being prepared to meet these needs when they occur, by keeping good relationships with bankers, customers and creditors.
| We will ensure an effective cashflow management, which in turn will help protect the financial security of your business. Our cash flow management outlines the steps that you can take when dealing with your customers, suppliers and stakeholders to improve cashflow. Our Customer management & Supplier management includes the following tasks :-
| | | CUSTOMER MANAGEMENT
| - We help define a credit policy, that clearly sets out your standard payment terms and we ensure that they are complied with;
- We ensure that invoices are issued promptly and regularly and we chase outstanding payments from customers. We generate information regarding outstanding debtors along with the overdue statements on a timely basis.
- We work our various strategies to ensure timely and early payments after discussions with the management. Such strategies may include exercising organization’s right to charge penal interest for late payment, Providing discounts for prompt payments, Demanding customer deposits and staged payments instead of one time payment after delivery.
| | | SUPPLIER MANAGEMENT
| We suggest various ways based on the history and creditworthiness of the client to extend the credit period from its suppliers. Such strategies include buying from a single large creditor supplier instead of various suppliers and negotiate payment terms in the client’s favor, Planning the procurement in such a manner that goods are purchased and services are availed just when they are needed instead of procuring them and stocking them, which could result into liquidity being freezed in inventory.
| | | Many of your regular cash outflows, such as salaries, loan repayments and tax, have to be made on fixed dates. You must always be in a position to meet these payments in order to avoid large fines or a disgruntled workforce.
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