How do I overcome some challenges I might face regarding cash flow in this festive season?


#1

I wanted to know how to prepare myself for any cash flow challenges this season.


#2

Here are some ways to overcome the cash flow challenges during the festive season:

  1. Forecast: Have a cash flow forecast, you will have a clear view of when the money is coming in or going out and what is left over, which will help you to make crucial decisions.

  2. Evaluate your terms: If you are struggling with late-paying clients, it is time to evaluate terms beforehand.

  3. Chase Debt now: Do not overlook overdue accounts, be diligent in handling unpaid invoices, because the closer you get to the holidays, the more difficult it will be to get paid.

  4. Plan: The holidays themselves will shorten the number of available working days, which will affect the income & profits. Make sure your cash flow is ready for the seasonal pause.

  5. Don’t be extravagant: Delay any large expenditure. If outflows are not that crucial for your business and can be tackled in the new year, do not give out the cash before you absolutely need to.

  6. Make it a business habit: Sit down with your management team or employees to let everyone know that it is time to be cash flow savvy.

  7. Don’t tax business growth: Ensure your TDS, GST payments are up to date. This will keep the business running without any hold-up.