“When things go wrong as they sometimes will, When the road you’re trudging seems all up hill, When the funds are low and the debts are high And you want to smile, but you have to sigh, When care is pressing you down a bit, Rest if you must, but don’t you quit”- John Greenleaf Whittier
Managing a business is not easy. Most of the time you encounter many ups and downs and face mountains of problems. Poor financial management is the most common problem of every businesses. If you’re having trouble paying your debts or obligations, or if you don’t have enough fund to continue your business operation, you are experiencing financial difficulties. It will take a lot of patience, sacrifices, and sleepless nights to overcome this problem.
When it seems like there is no way out, don’t panic. Why don’t you pause for a while? Inhale calm, exhale worry. Stay focused as we give you some helpful tips on how to conquer financial difficulties:
- Monitor Closely Your Cash Flow
If your cash payments exceed cash receipts, your business is in trouble. You need to track where your money goes and where it comes from. As you track your money, you will be able to know what to change and what to improve. The information that you gathered will help you to make right decisions.
There are many ways to track your cash. You can manually track them or utilize a bookkeeping software. If you have many business transactions or you have many streams of income and expenses, it is best if you hire a bookkeeper that will help you handle this function. They will not only help you organize your records but also help you understand your business inflows and outflows. Remember that in business, cash is king, and if you have no clue about the cash flow, you are operating your business blindly.
- Manage your Receivables
Another way to get yourself out of financial trouble is to find ways to increase your sales. However, if you have large number of receivables you need to pay attention to it. Improper management of receivables could lead to unhealthy cash inflows. Make sure to keep an eye on your receivables. Set a credit limit. Improve your billing. Remind your customers as frequent as possible. Give incentives to those who pay early. List down those customers who defaults or delays payments every now and then. Consider stop doing business with them if they still behave the same way.
Proper management of receivable will help achieve positive cash flow and reduce bad debts.
- Adapt to Change
In this world of constant change, what worked for you in the last three years, may not have worked for you this year. Make a thorough study of what strategy you need to implement with these changes. Review your business plan. Make adjustment if you must. Study your business operation. Observe the things that must be improved, things that need to be changed or things that need to be eliminated. Keep up to date of what’s happening around you.
As Frank Gens said “The companies that can quickly adapt their business models, product and service offerings, and industry relationships to meet the industry’s changing dynamics will be the ones to succeed in the long run. And with all these changes taking place, the companies that stay too close to their comfort zone will most likely get swamped by the innovators.”
Overcoming financial problems and difficulties isn’t easy, but with patience, determination, discipline and belief in yourself, you can overcome the challenges and at the same time, put an end to the financial stress. FAS Bookkeeping and Tax Services provides reliable financial information to build and sustain successful business. If you need assistance, contact us today at firstname.lastname@example.org or 832-437-0385.