To help businesses get savvy on saving, the South African Savings Institute (SASI), has earmarked the month of July as Savings Month. This is particularly pertinent, given the trying financial circumstances many individuals and businesses find themselves in on the back of ongoing COVID-19 restrictions.
Gary Epstein, Managing Director at EasyBiz Technologies, the partner for QuickBooks Online in South Africa, explains that creating awareness around financial saving is important for businesses, and that cash flow management is critical for their survival.
Many businesses are still travelling the road to financial recovery, with stricter lockdowns starting to resemble gaping potholes along the road to progress. As the third wave of the pandemic continues to crest across several provinces in the country, businesses need to fill up the coffers, particularly as we head into the latter half of 2021. (Don’t worry; no one’s going to call you a prepper).
Here are four essential tips to ensure continued cash flow throughout the year:
Stash the cash
While some are tempted to spend, clever clogs in the corner office is intent on squirreling away funds during times of plenty to save the business in lean times. For many, this practice has been their saving grace, ensuring business continuity in the face of lockdown measures over the past year. Businesses need to commit to doing all they can to save money each month, and those that make use of accounting solutions such as QuickBooks Online can make the process of finance and expenditure monitoring that much easier, thanks to third-party add-ons.
Trim the fat
With fewer bums in seats at the office, thanks to remote working, it means many companies are well-positioned to review the need for large and expensive office space. With some businesses still recuperating from the troubles of 2020, expenses need to be monitored and, where possible, trimmed.
Early bird catches the worm
A thorough invoicing strategy should be in place so you don’t have to chase customers for payments and end up on the ‘scam call’ list on their phones. Businesses should instil a sense of being direct and fair with customers. Plan accordingly by contacting late payers well in advance, invoicing them early and reminding them to pay on time.
Get the tech
If you don’t know your art from your entry journals, consider investing in reputable accounting software, which will offer you peace of mind, as well as the ability to forecast cash flow for future opportunities. Software solutions such as QuickBooks Online can simplify the accounting process, and provide customers with the tools and resources they need to weather the storms and also stay ahead of the competition.
While the majority of industries have experienced hardships in recent times, instilling cash-flow management measures such as these will allow for greater financial freedom in the coming years.