Cash is the oxygen your business needs to survive. For your business to survive and recover from the current economic downturn, its essential that you maximise your available cash.
Here are 5 more steps you can take right now to improve your business cash flow:
1. Cutting your expenses
Review all overhead expenses. Which costs can be cut altogether right now? Travel, entertainment, subscriptions and vehicle costs could be a good place to start.
2. Selling unused Assets and Equipment
Consider whether you need to keep unused assets and equipment. Selling these, even at a loss, will give you much needed cashflow.
3. Contacting your bank for assistance
Contact your bank and any other financiers to find out how they can help you manage your cashflow over the coming months.
4. Review the amount your business needs to pay you
Review your personal budget and check if you can reduce the amount your business needs to pay you during this period. Consider whether you could invest more cash into your business to get through the next few months.
5. Make use of Australian Taxation Office (ATO) support
The ATO is offering support to businesses suffering hardship by allowing payment deferrals, remitting interest and penalties, and offering low interest payment plans. Your tax accountants are experts at negotiating the best possible outcome and we recommend you speak with them as soon as possible.
Importantly, wherever you make arrangements to defer payments or enter into loan arrangements with the ATO, you must create a plan to ensure that the future payments are paid when they fall due.
When used with a regularly updated 13-week cash flow forecast, the above measures should significantly assist in improving your business’s cash flow position allowing helping it to survive the current period of uncertainty.
And in case you missed it, check out other ideas to improve your business cash flow in our article 5 ways to improve your business cash flow today.
To help you forecast and manage your cash flow, we’ve created a cash flow forecast template which you can download by clicking the button below.
Need a hand with your cash flow forecast or improving your cash flow? Book a complimentary meeting to discuss how we can support you.