A slowing economy can mean slowing sales despite the quality of a business’ products or services. When this happens, it is crucial to take steps to survive the downturn and ensure you will still be a going concern when the next up cycle comes.
As we’ve seen in the current business environment, increases in variable costs can never be fully anticipated. But by taking some proactive steps, you can insulate your business from cost surprises and be able to ride out any rough patches.
It is not an exaggeration to say that effective accounts receivable management can make or break a business. Providing products without obtaining payment is unsustainable. By having a reliable system in place that tracks and reminds customers of their obligations while also keeping their own needs in mind, you can maintain your cash flow, pay your own obligations, realize your profit goals, and chart a path for growth in the future.
Cash management is often called the “lifeblood” of a business, and for good reason. If you can’t pay your employees and you can’t pay your bills, you can’t continue as a going concern even if you have impressive sales on your books and are growing rapidly.
The coming year, much like 2020, is filled with uncertainty. Economic and community guidelines are ever-changing, and planning presents new challenges we haven’t seen before. Here at BKE, our goal is to help you plan through the multiple possibilities and prepare for the most successful business year possible. Over the next month, we are going […]