May 14 '10 Five ways to improve cash flow in a recession – art collector software

Cashflow is the life blood of any business. With some credit available from the banks conserving and the releasing of cash in a business has become a key objective for many entrepreneurs and small businesses, says Paul Farrell, Partner, W.O. McGrory & co the Drogheda based Omac Accountants in Drogheda firm.Paul explains [*CO]‘For any businesses, cash has usually been a priority. The advantages of effective cash management and cost reduction are apparent, but never way more than now.
‘We’ve compiled a listing of five simple methods to help businesses unlock cash in these recessionary times. Some may appear basic common sense, but shockingly can often be overlooked in favour of much more complex money preserving initiatives.’
Customers – Keep in more regular touch with your customers. Pay particular attention to those already outside concluded credit limits. Ensure that overdue accounts are chased quickly, but fairly. Consider offering improved prices or bulk rebates in order to reduce stocks without damaging the trading relationship.
Suppliers – talk to them, discuss extending payment terms. Whilst they are probably going to be under pressure too, if you’re a reliable customer with a good payment history, they could be prepared to temporarily relax payment terms.
Bank Financing – Keep communicating with your bank. They don’t like surprises so keep them informed and do not be afraid to debate further funding if you have got a plan or an immediate need, but always think ahead;
System Review – do you know how your business is essentially run from starting to end? Did you know what’s going down with every penny in your business, or more importantly, that you’ve got the ability to discover. A good accounting system will pay for itself in virtually no time. There are now excellent deals on accounting art collector software to assist in this regard.
Costs/Overheads – are there areas of the business that fat that can be trimmed? These may not be straight away clear but a review of the business can identify opportunities that will not negatively impact performance ;