2024 – Cracking the cashflow challenge?
As we approach the end of 2020 now is the ideal time to start looking at your cash flow plans for next year.
We know that Bounceback loans, Furlough schemes, and vat deferrals have all given businesses a short-term fix –to get through the last 9 months - but in reality, they will just defer the pain to 2021 onwards.
It’s clear there’s a crunch coming next year as the economy recovers sluggishly and a raft of repayments all kick in….
All business owners need to know:
Where is the cash going?
Where are the gaps?
What’s needed this month and next for salaries, taxes, and month-end bills?
But did you know:
82% of business failure is due to poor cashflow management?
69% of business owners have sleepless nights due to cashflow issues
Nearly 50% of businesses are trading cashflow negative (probably more in thisCOVID-19 economy)
In this uncertain climate it’s vital to be able to manage cash flow with a proper ‘real time’ plan.
Introducing Survive and Thrive
The problem is most accounting systems just don’t give you the full picture.
Sage and Xero are fine for profit and loss reports and running off aged debtors and creditors.
But they simply don’t offer Predictive Cashflow Forecasting that runsin real time 24-7
To help our clients Survive and Thrivewe are introducing clients toIntelligent cashflow planning utilising the latest AI enabled software to provide control, certainty and confidence around your forecasts.
This gives you:
Smart debtor management with action lists for credit control
Predictiverolling 90-day cashflow forecasting
Intelligent alerts for late payments
It also enables scenario planning or ‘what if analysis’ – for changes in sales targets, one off expenditure, investment plans and changes to staff costs.
In summary this helps you forecast the cash gaps before you hit them!
How might this benefit your business
Let’s take a company - we’ll call it James Electronics – with annual sales of £1m. Currently they trade with credit terms of 30 days – but in practice their customers take an average of 45 days to pay them. Sound familiar?
If using Fluidly and some smart automation they could get their invoices paid 10 days faster. This saving is worth £33,200 in cash terms (Inc. Vat).
Then let’s say these guys pay their suppliers also on 40 days – and they have a 30% margin on sales. Stretching supplier credit by just 7 days adds £14,900 to their cashflow.
So, in two steps they’ve gained a real cashflow benefit worth over £48,000.
Right now, how would a similar cash boost look to your business?
I’d like to present a simple Risk-Free Offer
If you are usingXero or QuickBooks, I can offer FREE ACCESS to our Survive and Thrive Programme which links to you to our smart cashflow planner. You will be able to use the software for as long as you like via our link.
Once it’s up and running (which takes just a few minutes) I’llinvite you to a free 20 minute ZOOM Discovery Callso we can review your forecast together, discuss the numbers and deliver a smart predictive cashflow planner for the next 90 days.
There is no catch to this offer, and we can schedule the Zoommeeting at any time of day (8am to 7pm)
The next step
Just call Tim Bowler on 0161 495 3681 or book a free 20 minute Discovery call