Category: Cashflow

Elevating Business: 1 Accounts Partners with Swoop

Posted on | by Jade Donno

In the ever-evolving landscape of business and finance, staying ahead means leveraging every available resource to fuel growth and efficiency. That’s why 1 Accounts Online is thrilled to announce our partnership with Swoop, a move set to revolutionise the way our clients manage their finances, access funding, and combat the energy crisis.

Why Partner with Swoop?

Swoop is a renowned platform that simplifies and speeds up access to loans, equity, and grants for businesses. Their expertise in financial solutions, combined with our accounting prowess, creates a synergy that promises to bring unparalleled value to our clients.

What This Partnership Means for Our Clients.

1. Enhanced Funding Opportunities:

Gain access to a broad range of funding options tailored to fit your business needs. Whether it’s a loan, equity finance, or grant, our combined efforts make the search and application process easier than ever.

2. Energy cost savings:

In today’s world, being energy efficient is not just good for the planet, it’s essential for business success. Our partnership with Swoop opens the door to innovative solutions that reduce energy costs, contributing to a healthier bottom line and a greener planet.

3. Empowered Financial Decisions:

Knowledge is power, especially when it comes to financial planning. With our collaborative tools and expertise, you’ll have a clearer understanding of your business’s financial health, empowering you to make informed decisions that spur growth.

Looking Ahead

The business world is dynamic, and so are the needs of our clients. This partnership is just the beginning. We are committed to continuously exploring innovative ways to provide value and support to our clients at every stage of their business journey.

Are you ready to explore how this partnership can benefit your business? Reach out to us today to learn more and take the first step towards a more prosperous and efficient future.

Hiring an accountant could save your business!

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A lot of new businesses fail. A lot of old businesses fail. A lot of previously successful businesses fail. Why? Usually, it comes down to issues around finances.

If you’re starting a new business, or if you’ve been in business for years and are trying to grow your team and scale your company, hiring an accountant can help. Here’s how.

1) They help you become more tax-efficient

Tax isn’t easy. Legislation changes all the time and any delays or mistakes could be costly. With an accountant filing your taxes for you, you can have the peace of mind that it is all being done correctly and on time. Not only that, but it saves you a lot of time and resources AND it saves you money. Accountants can reduce your tax burden by identifying opportunities for deductions, and they can help you avoid any government fines.

2) They mitigate the risk of financial mistakes

Accountants know how to identify financial risks and avoid them before they become major problems. What this means for you is that you’ll never spend money you don’t have, you will save money in all the areas you can, and you’ll be more aware and better equipped to stick to a proper budget. Fewer to no financial mistakes means minimal losses and more profit!

3) They actively help you to grow your business

If you get an accountant on board in the early stages of your business, they will help you to develop a plan for growing your business in the right way. Not only that, but they will also ensure that your finances are handled correctly from the beginning so that it doesn’t take over everything else in the future. As your business grows, they will start to provide advice in other areas such as budgeting and financing; payroll and recruitment, cashflow forecasting and investments, and business strategy. They will work with you to ensure you have the financial capabilities and processes needed to work towards your business goals.

Survive and thrive!

Most new businesses fail because of financial issues, so don’t make the same mistake. Hire an accountant as early as possible and get the guidance and expertise needed to take your business to the next level. They will not only help you save money, but they can help you make money as your business grows too.

Is your small business struggling to make a decent profit? Here are six little known profit holes.

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With the economy as unpredictable as it has been lately it is essential for small business owners to take a good look at your overheads and cost of sales. Add into the mix the rising cost of labour, materials and shipping, and this exercise to examine your cost base may be the difference between your business having a good year next year or going under. This article will look at the 6 most common profit holes that many small businesses may have.

1) Pricing: Has it kept up with your costs?

It’s been a difficult few years and you may be thinking that your customers and clients can’t swallow an increase. Well, think again – If Starbucks and Costa Coffee can afford to still charge eye-watering amounts for a slice of cake and a coffee throughout the pandemic, then you can look at your pricing.
Often, the biggest profit hole we see with our clients is around a poor pricing strategy. Such as:

  • Are your sales team discounting too much in order to make the sale? Particularly for wholesale or bulk orders?
  • Have you kept your prices static whilst your costs have increased?
  • Are your prices in line with your cost base now, rather than when you were a much smaller business? For example, if your prices have not changed since you ran your business from the kitchen table, then it’s time to relook at your pricing.

2) Do you have a revolving door of employees?

Hiring new staff members is expensive; recruitment agency costs, training costs and senior management time spent hiring and training. Losing good employees is even more expensive – both in terms of opportunity cost and also the hit on morale when a good person leaves. If you do have an employee turnover problem, it’s time to take a good look at how to increase the levels of employee engagement in your business. Being very blunt here, you may look into the mirror to see if you personally may be part of the problem.

3) Software costs: Have you had a good look to see what you’re really using?

Those £15 a month per user type subscriptions really do add up over time. How many user licences are you still paying for but don’t actually need? How many of those pieces of software that you decided to try out are you actually using? If you used all the features of your core software, how many other licences or subscriptions could you ditch? You may find that a good look at your software stack could yield a large amount of ‘money down the back of the sofa’ each month.

4) Suppliers: Are they taking the proverbial?

This often happens when we’ve worked with a supplier for years and both you and they have got comfortable and complacency sets in. This cosiness could be hiding the fact that you might not be getting the service you require. Even worse, the prices you are paying might now out of step with the marketplace. Don’t let inertia and a desire to avoid conflict stop you from having a ‘state of the nation type’ conversation with the supplier.
In our experience, the first place to look at is your spending with marketing suppliers. Then your telephone and internet suppliers. Ask yourself; What are they really delivering? Do they need a shakeup? Our advice to you is if this resonates with you, have that conversation!

5) Not using automation – particularly in your financial processes

The cloud revolution which we keep harping on about has been a game-changer for not just accountants. The digital tools out there will help your business cut out so much physical paperwork and manual entry. For example, if you are a small cafe or pub you can now get great phone apps that will allow customers to place their orders from the table. Thus, improving the efficiency of your operation and waiting staff.
Using bank rules, email rules and other types of automation in conjunction with software such as Dext can reduce the time it takes to do your books or manage staff expenses. Why not have a chat with us to see where using apps and cloud-based software can take the grind out of your financial processes and systems?

6) Doing it yourself

How long does it take you to do stuff which should be outsourced or done by others in your business? This ‘doing it yourself’, particularly when it comes to things like bookkeeping or VAT returns, is often a false economy. Your time is much more valuable delighting customers and clients and running your business than puzzling over whether you can or can not claim VAT on your company car expenditure or that coffee with a client.
Using the right people and suppliers to free you up to do what you’re best at is often a great way to generate more profit. It goes without saying that we are always happy to talk about whether we are a good home for your bookkeeping and other financial processes.
If you address these 6 points in your business then you will be in a much better position to face whatever happens next with the economy.

 

The Do’s and Don’ts of pricing in a recession

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No matter how big or successful your company is, maintaining business throughout a recession is hard. With fluctuating demands, losses in sales and competitive price drops, the whole experience can feel like a rollercoaster ride. So how do you survive the economic chaos?

To help guide you through, we’ve created a comprehensive list of pricing do’s and don’ts. These tips can help you find long-term solutions to your turbulent, but hopefully temporary, problems and ensure you not only survive the recession but develop strategies to help you thrive long after.

The Do’s

Do promote your value

Unforeseen circumstances can quickly change the landscape of the economy. However, these external factors shouldn’t directly impact the value of your products or services. Therefore, we believe the best way to navigate a recession and stand out from your competitors is to focus on communicating the intrinsic value of your products and services. Through effective marketing, you can remind your clientele of your unwavering commitment to high-quality service and customer satisfaction regardless of the economic landscape.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

Do control your costs and address inefficiencies

Controlling your prices during a recession is incredibly important. Why? Because the decisions you make during times of crisis strongly reflect your company standards and values. Make the wrong call, and it can irreparably damage your reputation and relationships with customers, which in turn will harm your sales long after the recession is over.

Instead of altering your prices to increase your profit margins or sales, focus on streamlining your companies’ processes. Address any inefficiencies, create long-term solutions and invest in your team’s development.

Do create valuable bundles

Dramatic price cuts aren’t as effective as you may think – not to mention, they’re almost always unsustainable. Instead, you want to find solutions that will accommodate your customer’s current needs without compromising the value of your products or services.

Creating valuable bundles and packages is one solution that is both reliable and sustainable. By offering a range of bundles (from low to high value), you’re able to attract a variety of customers and cater for their varying needs. As a result, you’re able to drive up sales, preserve the value of your products and services, and accommodate your cost-conscious customers throughout these difficult times.

Do keep looking ahead

Every business owner, CEO and partner knows that for a business to succeed, you must constantly be looking ahead – innovating and improving upon your current position. (Even amidst a recession, you must focus on long-term solutions.) Therefore, it’s vitally important to focus on your research and development strategies. Assess your customer’s wants and needs – ask them how you can improve and really listen. You can then use this information to improve upon and create products/services that incentivise customers to start (or continue) investing in your business.

The Don’ts

Don’t rapidly reduce your prices

There are several reasons why rapidly reducing your prices is an ineffective and ultimately damaging tactic during an economic downturn. However, we believe the most significant reasons are:

  1. You can destroy your long-term value. If you lock in a long-term price drop, you’re signaling to customers that the value of your products and services are significantly lower than your standard price point.
  2. Discounts won’t resolve your demand issues. If your products or services aren’t currently in demand, lowering your prices won’t change a thing. For example, there was little to no demand for theatre tickets at the height of the pandemic. However, since restrictions have eased, sales have returned to normal, and box offices have successfully maintained their original prices.

So don’t fall into the trap of lowering your prices – they are not the problem.

Don’t rapidly increase your prices

If you’re experiencing a sudden surge in sales – fantastic! Be grateful, not greedy. Rapidly increasing your prices when your products/services are in high demand implies that you are taking advantage of your customers and their needs. Not only will this alienate your customers and damage your reputation, but it can also lead to legal implications. So, whenever you are increasing your prices, make sure you do so ethically and sustainably.

Don’t get into a pricing war

If a competitor reduces their prices, don’t immediately assume you have to do the same. Competitive pricing will only damage your value (and your profit margins). Now, that isn’t to say you can’t develop a cheaper product or service that’s of equal value to your competitor’s offering – but you should only cheapen your services if you have adjusted their intrinsic value.

Remember, customers will respect your pricing so long as the services or products you provide are of a high standard.

Don’t focus on quality over quantity

Guiding your business through a recession is no mean feat. It takes a lot of courage to maintain your prices and values. However, this perseverance will help to preserve your reputation and uphold your high standards. So, instead of taking a reactive approach, focus on being proactive! Find long-term solutions, provide non-monetary discounts and drive sales based upon the quality of your products and services.

Accounts receivable vs accounts payable: what’s the difference?

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You can only manage your finances effectively if you know certain numbers and, as we all know, credit control leads to consistent cash flow which is vital for business success.

To help you manage your financial processes more effectively, here are two numbers that you need to know: accounts receivable and accounts payable.

What are accounts receivables?

Also known as AR, your accounts receivable refers to all outstanding invoices that have been sent to clients but are yet to be paid. In simpler terms, this number is the money owed to your business.

Whether it is overdue invoices or lines of credit, all of your receivables are classified as a current asset. Why? Because they should all be turned into cash within 12 months.

If you are having trouble recovering your accounts receivables click here for some extra tips.

What are accounts payable?

As you can probably guess, your accounts payable is the opposite of your receivable. This is a record of all outstanding invoices that have been sent to you by your suppliers or creditors. To put it simply, this number is the money your business owes.

Inversely to your receivables, your payables are classified as a current liability.

Why is it important to know these numbers?

To be successful, every business owner needs to know how much money is coming into the business and how much money is going out. And that’s exactly what payables and receivables are.

  • Accounts receivable = money owed to your business (ASSET)
  • Accounts payable = money you owe (LIABILITY)

These make up the foundation of accounting as once you know these numbers, you can start to implement effective credit control processes to build a consistent cash flow.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

Start managing your finances effectively

When it comes to your credit control processes, consider digital accounting software and a digital payment process. This will help you to get paid quicker and on time, and it will allow you to get an overview of your finances in real-time.

With reports regarding your payables and receivables, you can make sound business decisions whilst managing any financial risks. The result? A successful business with a healthy cash flow!

surprised face

7 Ways an Accountant Can Save You Money

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In today’s competitive business world, it is not uncommon for people to do their own bookkeeping and accounting. There are many reasons why this is done – the most common being that you can save money doing so. Of course, saving a couple of hundred pounds is an enticing prospect, but there are actually many more ways in which hiring the services of one will help you make money instead. Here are 7 ways an accountant can save you money:

1) They free up your time

Time IS money, so the more time you free up doing your bookkeeping, taxes, and financial statements, the more time you can dedicate to the tasks that will actually generate money for your business.

Not to mention that it will take you a lot longer to do all your finances than a professional anyway. Why would you waste your time when you could be doing what you do best and what you actually enjoy?

2) They help you be more tax-efficient

Accountants can help you save money by being more tax-efficient. This means claiming what you can, obtaining loans if you are entitled to financial support, and maximising the tax deductions you are entitled to.

3) They help you avoid fines and penalties

You need to file your taxes correctly and you need to do this on time. With legislation changing all the time, this isn’t easy, and you could be leaving yourself vulnerable to penalties and charges, simply because you didn’t know.

By hiring an accountant, you can always be reassured that you’re filing on time and that your taxes are correct. You can have peace of mind that you won’t get a surprise letter from HMRC and you don’t even have to deal with them at all if you don’t want to.

4) They identify opportunities for growth

Accountants keep your records up-to-date so you will always know the figures of your business. At a glance, you’ll be able to see how you’re performing, what’s coming in and what’s going out, and also your liquidity.

There is power in data! For example, your accountant can help you ascertain how long you could survive if there was a recession, where you can cut down expenses to save money, and where you should be delegating most of your budget if you want to grow.

5) They assist in gaining funding

It takes a lot of time to secure financing from banks and as we said previously, time is money. Your accountant can help you secure loans and financing really easily from creating a business plan and helping you budget to applying and assisting you in the loan process.

6) They advise on investments

If you’re interested in investing, an accountant can help you understand different investment options. From stocks and money markets to real estate and investment vehicles, they can show you how you can grow your money and which opportunities are the best for you and your business.

7) They offer invaluable business advice

As well as accountancy, accountants can offer business guidance to help you increase your chances of success. They can help you build a business from the ground up; they can help you with goal setting and planning, budgeting and forecasting, and pricing to increase your profit margin. This isn’t even everything that’s included in their advisory services so make sure to take advantage of their knowledge.

Spend money to make money

While you can save a couple of hundred pounds doing your own books, you won’t save as much with an accountant and you could actually end up losing a lot more. With an accountant on your team, you can save both time and money while having the reassurance and peace of mind that you’re making sound business decisions for your future.

piggy bank

10 tactics to make sure your invoices get paid.

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Wouldn’t life be simple if you could guarantee that your invoice would get paid on time every time? Sadly, this isn’t always the reality. With the economy coming out of recession, there is a very clear and present danger that your business invoices may not get paid in a timely fashion. Here are our best tips for getting your invoices paid:

1 . Invoice promptly

The longer you take to invoice someone, the more likely the bill won’t get paid. Of course, no invoice normally means no payment… Do you remember the early days of running your business? When you were amazed that some business owners got lax with their billing? Then, you get busy servicing your customers and clients and the admin slips. Before you know it, you become that business owner who has become slow to invoice.

If you are finding that you are getting behind on your admin, then give us a call. We can take care of your bookkeeping and other financial processes to leave you free to run your business.

Cloud accounting software such as Xero, include the feature to do recurring invoices. So, where you have a regular repeating invoice for the same amount with a customer, use this recurring invoice feature to cut down the chance of missing an invoice.

2 .No billing surprises

The more unexpected a bill, the more likely it won’t get paid. If a project is going to occur some extra expense or cost, always talk to the client or customer promptly about it. If you just crack on with it and don’t tell the customer about the unexpected cost coming their way, you risk getting into a payment dispute.

Before you bill someone, always make sure that:

  • They are aware and expecting the bill
  • They have agreed to pay the bill

3. Set up a Direct Debit or payment mandate for your customers and clients

If you have regular customers, getting a direct debit mandate signed from them is a great way to be more in control of when they pay you. GoCardless is an inexpensive direct debit solution that integrates well with the likes of Xero. Our team can help you set up Direct Debit for your customers.

4. Make it easy to pay your invoice

This is such a simple one but easily missed. Make sure you are removing any barriers to pay your bill. Such as:

  • Including a ‘pay now’ button linked to a payment gateway on your invoices. For example, Xero will do this for you with your Stripe account. Some customers may be happy for you to type in their card details over the phone using this option.
  • If you visit the customer on-site, then have the means to take payment whilst you are on site. E.g. with a card machine. Technology is such that you can easily connect a gadget or download an app to your phone to take card payments. No need for an expensive and bulky card terminal.
  • Including your bank details on the invoice. (You will be surprised how many businesses and tradespeople don’t do this).
  • Offer your customers the option to do a bank transfer, set up a direct debit or pay by credit card. If possible, try to avoid offering the option to pay by cheque as getting to the bank can take time.

5. Ask for payment before you start working for the customer or client

There is no rule saying you can only invoice after you start work for a client. In fact, we will ask for payment upfront for some of our services, such as a client wanting a one-off tax return. If you (or your customers) are not happy with a 100% upfront payment, why not ask for a deposit to get the work started?

6. Build a relationship with the accounts payable team at your customer

It always helps to be nice to the person at your customer’s business who actually pays your bill. The stronger the relationship you have with them, the more chance your invoice gets paid promptly and without being ‘delayed’. This may not be your direct contact. It could be someone in their finance or accounts payable team. So, who in the customer’s organisation is responsible for accounts payable? Can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

7. Understand your customers’ accounts payable process

Do you need a PO number on your invoice? How does the invoice need to be addressed and who too? What needs to be on the invoice for it to be paid promptly? Who at your customer’s organisation needs to sign off the invoice before it will be paid? Who in the customer’s organisation is responsible for accounts payable? And can you get their name and contact details to help ‘ease the way for your invoice to be paid’?

When a finance department is preserving cash for a business, they will reject an invoice for payment for the smallest reason.

8. Put in place a process for unpaid invoices

For example, this could include a series of communications when the invoice is issued. Then a call or email the day before the invoice is due to see when it is going to be paid. Then a series of calls or emails a number of days and weeks after the invoice is due to be paid.

Most accounting systems such as Xero will have a feature for automated reminders for invoices. If you need more than the basic invoice chasing that this software will provide, consider using a more sophisticated credit control tool such as Chaser.

9. Consider offering a payment plan for customers who have built up a large unpaid debt

Most customers want to pay your bill. But sometimes stuff gets in the way. So consider offering a payment plan. Getting paid over 6 months in instalments is better than not getting paid at all.

10. Stop work if your invoices don’t get paid

We see this regularly. Where a business owner carries on working for a customer in the hope that the invoices will get paid eventually. The debts pile up and may never get paid. You’ll be surprised how quickly your unpaid invoices may get paid if you stop working for a client.

why should I switch to a digital payment process

Why should I switch to a digital payment process?

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According to studies, SMEs spend on average, a whopping £4.4 billion per annum chasing late payments. This problem is only exacerbated by traditional (and slow!) payment methods too such as cash and cheques, so what is the solution to this?

To reduce the time between invoicing and the money actually clearing into your accounts receivables – thereby minimising the negative impact on your cash flow – small and medium businesses should consider switching to digital payment. Here’s why.

6 benefits of switching to a digital payment process

1 . Consistent cash flow

Digital payments mean a faster processing time which results in a much faster cash conversion cycle. This means no more big gaps in cash flow due to late payments.

2 . Lower processing costs

Switching to digital means lower payment processing fees than standard bank transfers. As there’s no need for manual reconciliation, labour costs are also reduced.

3 . Greater visibility of your finances in real-time

Businesses that use a digital payment process always have their accounts receivables in real-time. This allows them to refine their credit control processes and make informed strategic decisions.

4. Quicker reconciliation

Digital payments don’t take days to reconcile, they show up on your accounts receivable almost instantly. The result? Better documentation and more time for your staff to focus on the high-value stuff instead.

5. Happier clients

Going digital benefits your clients too as it gives them the widest and most convenient range of payment options to choose from. Making it quick and easy for your clients to pay makes them happy and it builds loyal relationships too!

6. Security compliant

The vast majority of software providers abide by the Payment Card Industry Data Security Standard (PCI DSS). This means all business and client data can be processed securely.

Wave goodbye to late payments

Payment delays can build and threaten the future of your company. To avoid potentially irreparable damage, implement digital payments sooner rather than later. Not only will this balance out your monthly cash flow and reduce manual work and extra costs, but it will also improve your client journey and most likely ensure repeat business.

 

How do I make more money without spending a penny!

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If you’ve lost clients due to the Covid-19 pandemic, you are not the only one. Countless businesses have lost a substantial amount of revenue, some of which have been forced to declare bankruptcy or shut their doors for good.

When we lose clients, it can be tempting to jump back on the sales horse and concentrate on winning new business. Of course, this isn’t wrong, but there are better ways to initially generate new revenue than trying to win more leads.

In this blog, we outline 6 ways to generate more revenue from your existing client base without spending a penny!

1. Prioritise the money you are owed first

Talk to the clients who owe you money and negotiate how they will pay their debts. You have already provided this service, so chasing up and agreeing on payment dates is the first thing you need to do. Next, bill any work in progress or completed work that has been invoiced.

If you need help getting your invoices paid then read our blog 10 ways to make sure your invoices get paid.

2. Review and start charging for your ‘freebies’

We all like to go above and beyond for our clients, but sometimes this comes at a cost. Review what you are currently giving away above and beyond the service your clients are paying for and start charging for it. Usually, this is an area where significant amounts of extra revenue can be found.

3. Consider increasing your fees

You may be hesitant about raising fees during a recession, but ask yourself: when did you last do a fee increase, and how much more time are you having to spend with your clients to support them right now? If you’re doing a lot more for less, explain to your clients that you need to increase your fees to keep giving them the level of support that they need.

4. Analyse your current client portfolio

Look at your current client base and segment them into A, B, and C clients. A clients are your most valuable and tend to bring in the most business and/or they pay very well. B clients are good quality clients who usually make up the majority of your business. C clients are usually not in line with your business anymore or are low payers and/or are picky.

Using your analysis, identify which clients need more help from you and who could benefit from other services that you offer. Start increasing your communication with your A and B clients and ditch or convert your C clients.

5. Follow up with old leads

You can ring old prospects or existing clients to check in and see how they are doing. Due to the social restrictions during the pandemic, there isn’t going to be anybody that won’t appreciate you asking how they are. Make sure to catch up with your good referrers too!

6. Increase other marketing activities

What other marketing activities can you do that won’t cost a penny? One of the best tasks you can do for your business is to focus on increasing your online presence. Good ways to do this are to regularly post to social media and to start writing blogs. Read our blog about why you should be regularly publishing blogs for some tips.

This will enable you to stay in front of prospects and clients and it ensures that you are remembered when they are ready to buy your service.

7. Always focus on your existing clients first

Your clients already like you and trust you, so they will be a lot more willing to buy more from you. If you’re looking to increase your revenue during times of difficulty, always turn to your existing clients first. You may find that you don’t need to go out and find new business after all.

blobs

How to recover your accounts receivables

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How to Recover Your Accounts Receivables After Covid-19

The pandemic has not been kind to business. Many companies have struggled with poor cash flow, defaulting on payments and many have even gone bankrupt. Even now, businesses still struggle, so, understandably, that the financial situation of most businesses in the world is bleak. With that being said, however, with the high vaccine rollout, Covid-19 IS receding (albeit, slowly).

To plan for post-crisis growth, every business will soon have to assess its financial position. This includes a review of receivables: how much they are owed and how well they’ve managed them before the crisis.

Here is how to recover your accounts receivable to prepare for post-Covid growth.

1. Take an honest assessment of your current business situation

Although the business world is slowly opening up again and life is resuming to some sort of normality, there will be an inevitable lag in business. What this means is that business liquidity isn’t going to improve until 2022.

So how can you prepare for this? First, look at your receivables, specifically how much you owe and what percentage of these will be paid back in the next year. Next, you need to forecast your cash flow to make sure that you can survive this period. Lastly, it’s good practice to segment your portfolio of clients into A, B and C. A are great clients, B are average, and C are the poor payers. Prioritise who you need to chase for cash flow payments.

2. Prepare for different scenarios by improving your processes

Things are changing all the time still, so consider what changes could help your business if a third wave of Covid hits or you experience other technical challenges. How will this impact your business? Could you survive?

To remain financially stable in almost any scenario, you need to improve your processes, especially shifting your accounts receivable set up to recall more reliable payments.  You can also reset your accounts receivable to be flexible for the recovery by closely examining payment deferrals and ensuring that payment chasing procedures are followed up consistently. The goal here is to get more customers to pay on time moving forward.

3. Think about customer expectations and invest in tech

Needs and expectations are evolving, especially throughout the pandemic, so the key to recovery is to anticipate these needs. Technology is a big area that a lot of businesses are focusing on and for good reason.

To build recovery-proof receivables in your business, you need to streamline and automate processes. For example, automated invoice reminders, credit control software, and customer payment portals etc.

Prepare your business for whatever comes next

The pandemic recovery is going to be painful, but you can take a few steps to prepare for and quickly react to changing situations. This is the key to post-crisis growth: consistently analysing your accounts receivables and adjusting your processes and operations until you create an adaptive model that aids growth instead of hinders.