Out of cash and stumbling off the profit mountain?
Posted by Lucy Beck on November 2, 2012
Does your business have cash flow woes?
In order for businesses to survive in today’s economic climate they need to be profitable. But in order to be making money they need to keep on top of their mountain of finances and in particular be able to pay off any debts as and when they become due. Many businesses that have been super profitable have been unsuccessful due to the inability to be able to arrange the money needed to pay off these debts in advance. This in effect means that they have run out of cash and stumbled dangerously off of the profit mountain.
However keeping your business profitable is not the only key to success. A good business is able to manage its cash flow correctly meaning that a watchful eye is kept on the everyday cash movements in and out of the business. This means that the business is able to keep tabs on the increase in bank balance or overdraft.
The difficulty lies in that finance departments are left scratching their heads over the reams of data that is hard to extract and use. This therefore means that it is difficult to try and asses the current cash flow, where and who it is going to and to then be able to successfully forecast where future spending is needed.
So in order to combat this cash flow crisis businesses need to automate and simplify their cash processes so that effectively predicting cash requirements in the future is possible. But not only that it is possible but also that it is accurate.
This new found automated cash management will then allow finance departments to firstly be able to decrease their costs, secondly acquire capital at the lowest costs, thirdly reduce late payment fees and finally take full advantage of early payment discounts.
i-Dynamics process automation can assist in automating your cash management. 01722 480100.