Cash Remains King As Businesses Gear Up For Growth
Keeping an eye on your cashflow ...
Posted by Roger Eddowes on 11/05/2023 @ 8:00AM
Brexit, the pandemic, the cost of living crisis and the war in Ukraine have caused some significant disruptions to the economy over the past few years and this has meant a big shakeup for the business sector ...
Robust cash planning, not just for the immediate future, but for the next year and beyond, is now a priority!
But one principle remains constant throughout all of these challenges, and that is the fact that cash is king. Cash management has meant businesses need to optimise cashflow and refine their forecasting methods.
"Businesses have had to maintain a firm grip on their cash situation!"
This heightened focus on cash management is reflected in a report by software provider BlackLine, which found that 62% of respondents believed real-time cash flow understanding would become more critical over the year. However, 98% wished for greater confidence in their visibility over cash flow.
Economic uncertainty, late payments, soaring inflation, and energy costs all contribute to cashflow problems for small businesses. But many firms have adopted new technology and digital tools to help manage cash flow, particularly in light of their challenging experiences during the pandemic.
The focus on forecasting has intensified, with American Express research revealing that it is the task that consumes most of the time and resources of finance teams. They also found that finance functions have increased the frequency of their rebudgeting or reforecasting, with 33% expecting to do it monthly in the coming year, up from 28% before the pandemic.
"In the context of growth, cash flow remains as crucial as ever!"
Robust cash planning, not just for the immediate future, but for the next year and beyond, is now a priority for most companies. The prospect of achieving real-time, 100% visibility of cash makes it unlikely that businesses will revert to laxer cash management, regardless of economic conditions.
Cash is king, and it always will be.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about improving and monitoring your cashflow, it may be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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