“Every downfall is followed by a striking rise and with that belief we strive ahead.”
The current outbreak of coronavirus was unprecedented which led to a shock among the masses and has sowed a seed of economic distress in the world. The only way to fight this financial crisis is by taking certain firm and witty measures. Here, are 9 such methods that can be inculcated to set a steady pace of cash flow.
- Systematize your bookkeeping and accounting practices-
In order to get a hold of the situation, having a complete overview of the financial transactions is of utmost importance. This can only be attained by having a detailed and well-organized accounting system. So, the first step is to develop a precise accounting and book keeping system.
- Efficient cash flow management-
With an organized accounting system, various transactions and dealings can be well gauged. It would help you find ways to cut out on needless expenses and build up on savings. Selling off underused and unnecessary assets would provide certain income which can be useful in the hour of need.
- Foretell cash flow in business-
Having a systematic accounting system helps in gaining a comprehensive knowledge of present revenue reports which can be used to predict our future course of action. Foreseeing the future can then tactfully be used to understand the cash flow in market.
- Explore credit options-
In order to deal with the current shortcomings, credit seems like a viable option. Despite having its own cons, it can still prove beneficial in paying off dues. Opting for loans can also be considered.
- Subsidize payment strategy-
Have a word with your dealers, vendors and associates and try to mediate a plan that would include subsidized rates compared to the current rates. Negotiate for a lower pricing or a favourable delay in the payment process such that the cash flow can be stabilized.
- Align your priorities-
Stress can lead to hasty decisions, so to avoid that, prioritizing of debts should be done. Dues should be paid off based on their importance and their impact on the functioning of a business.
- Study market trends
Concentrate on promoting popular products such that a market base can be prepared for the near future. Starting a new business can also be considered as an option if reallocation of assets is feasible.
- Keep a check on expected payments-
At a time like this, we should be considerate towards our counterpart. Therefore, part payments should be accepted promptly instead of demanding the full payments. This will still be a win-win situation, because some amount is better than no amount during financial crisis.
- Seek out for professional opinion-
Consulting with professionals in order to handle legalities or basics of accounting would only be helpful in the long run. It might seem a bit out of the way but opting for expert guidance will do no harm.
Thus, the above strategies will prove handy to deal with the current unfavorable business scenario and help us tackle the economic adversities.