Business finances can be tricky to stay on top of – hence why you’re checking out our site, right?! But, the more you can do to have processes in place that help with better business cash flow, the more you will be able to get through times of trouble. With the COVID 19 pandemic causing global issues for business owners, here are some awesome hacks you can use to improve cash flow for your company!

Better Cash Flow Management

At this time, it is essential to keep an eye on the long-term, and this means better cash flow management! We understand that this is hard right now, with the global pandemic. The solution is a focus on better housekeeping, and we don’t mean spring cleaning! Try to make your business more efficient and look at areas you can save money; there is plenty of software you can use for this, or you might prefer to hire someone more tech and money savvy! Either works fine!

Lease Don’t Buy

Equipment and machinery is a big cost for your business, and we know it may not be as cost-effective long term, but you can save heaps of cash right now if you switch from buying this stuff to leasing it. That way, you only pay for it as and when you need it, and you can pick and choose the projects you need it for.

Invoice Quickly

Ugh, invoicing! The absolute worst part of freelancing or business ownership. Unfortunately, it’s essential. There is no guaranteed way of getting paid promptly from clients, but we can guarantee that invoicing quickly and promptly will ABSOLUTELY give you the best possible chance of getting paid faster.

Make Use of Government Support

If you experience financial difficulties, there is government support you can use to help. We recommend you check out the Canada Revenue Agency page regularly for business loans and support that is offered right now to help companies. Those can bring cash injections you’re your business when you need them to. Just have in mind that some of the initiatives are taxable and the loans are repayable, so plan your cash accordingly.

Offer Additional Services

One of the best ways of improving cash flow in difficult times is to expand on the services you offer. You may find you need to reduce your services as people are struggling for money, but if you can offer more services for a reasonable price, you have a great chance of making this back. Focus on services that people need right now to grow their business and can’t afford not to hire for.

Make the Right Tax Decisions

Okay, we saved this one until the end as it’s a biggie! You MUST make sure you understand your taxes. So often we encounter clients who don’t know what their tax payable is at the end of the year and end up with a surprise big lump sum that they need to pay to the CRA. Keeping track of your tax payable during the year and making installments is the best way to avoid unpleasant surprises that can really hurt your operational cash flow. Setting aside a separate bank account to save for your taxes can be a great idea too.

Confusing? Well, that’s why you have us! Feel free to book a complimentary consultation with us and we will be happy to go over any questions you might have!

Book your complimentary consultation today!

Book your consultation

Book your complimentary consultation today!

Book your consultation