Looking forward to the coming year, there are steps you can take to prepare and ensure your business is in order. Here are 12 tips to help your firm start the New Year in a good position:
1. Map out a financial forecast for the forthcoming year
Ensure this forecast is realistic to gain maximum benefit. Use this to see if there are any points where extra working capital can be used.
2. Review and remind your clients about payment terms
Stick to your conditions and enforce payment terms. A simple way to do this is by including these details on your invoices as a reminder.
3. Save time and money by using market-leading software to manage cash flow
IDeal™ is a fully automated platform that self-reconciles funds instantly. The software integrates with your accounts system and can be accessed 24/7, anywhere in the world.
4. Invest now to protect your business against cybercrime
Act now to invest in safeguards to manage the risks to your business. If you are attacked and the correct steps to protect against cybercrime haven’t been taken, you can incur a fine.
5. Use invoice finance to manage cash flow in wake of late payments
Access extra working capital by using invoice finance. Late payments can have negative consequences for businesses, such as having to write off unpaid bills or making it difficult to manage cash flow.
6. Review your data arrangements and make sure they are compliant with GDPR
All personal data must be managed in a safe and secure way, the GDPR will be enforcing this with large fines for breaches of the regulations. If you are part of the recruitment industry, there are additional changes to be aware of.
7. Unlock up to 100% of your unpaid invoices using Liquidity Plus
Businesses often need short term finance to help manage periods of rapid growth. Find out how an award winning manufacturing firm used Liquidity Plus to increase their funding and invest in their business.
8. Agree the scope of work before beginning a project
To help make sure you get paid on time, make expectations about your costs and payment terms clear at the start of your contract, before any work goes ahead.
9. See if asset based lending is a good fit for your business
Many SMEs are missing out on the opportunity to release capital from assets such as stock, property, plant and machinery. Discover the untapped potential asset based lending could bring to your business.
10. Plan the succession strategy for your company
A succession strategy will ensure a successful transition from one business owner to the next, and financial planning is important in safeguarding this process.
11. Find the right finance to achieve your business goals
Restricted cash flow is a barrier to growth, and there are many types of finance available that can grow in line with your turnover. Explore the different benefits invoice discounting, factoring and asset based lending can offer your business.
12. Take advantage of bad debt protection
Bad debt protection can help you to operate secure in the knowledge that you are covered should your customers get into financial difficulty.