The challenge for 2016: Positive cashflow

Leading experts warn that maintaining positive cashflows is the challenge for 2016. That means businesses who have the ability to generate precise financial projections and make informed decisions from past trends will be able to grow — or even survive — in 2016.

A healthy cash flow is critical for business success because positive cash flow indicates your business is running smoothly. Here are some of the risk factors that can negatively affect the health of your cash flow:

• Is your business growing fast?
• Are you having issues getting paid on time?
• Is your cash tied up in stock?
• Are your people tied up in inefficiencies?
• Is calculating cash flow too time consuming?

If you answer yes to any of these questions, read on to learn about the challenge ahead and ensure your cash flow remains positive.

After the downturns and instabilities of recent years, it’s easy to understand why every business is a little cash-obsessed. Whether you’re saving for a rainy day or doing accounting gymnastics to stretch your thin reserves, every finance department is zeroed in on making every penny work as hard as it can.
As banks look to reduce the risk of lending, finding alternative routes to increase access to cash is key in 2016. Poor cash flow is a primary reason for businesses failing. Many profitable companies find that they are, for all practical purposes, insolvent – simply because of uneven or negative cash flow. A major issue for SMBs is getting invoices paid on time—many suffer from poor payment practices by customers.

Small and Medium Business specialists reporting on recent trends highlight the importance of managing cash flow for 2016.

Introducing tried and tested software solutions to optimise cash flow

“The only way you will ever permanently take control of your financial life is to dig deep and fix the root problem”, said Suze Orman.

CBIZ have 30 years of proven experience providing financial accounting solutions to small and medium sized businesses. Using Microsoft’s trusted finance software — Microsoft Dynamics NAV — provides you with the tools you need to track and manage your cash.

• A cash flow calendar provides you with vital historic information and future predictions of how funds are flowing in and out of your business.
• Bank reconciliation tools and reports provide you with a clear view of your actual cash on hand as well as all your deposits and debits across all your bank accounts
• Easily keep tabs on tracking account receivables to make sure your getting paid as quickly as possible
• A simple out of the box report provides a list of customers whose balances are over a threshold you choose, allowing you to view their hhistory and make the best decision on how to manage them

Having the right technology in place, that you trust, allows you to streamline your processes, manage all your business information and make the right decisions for change. Microsoft Dynamics NAV is the perfect finance software to optimize cash flow for your organization and view past trends and future predictions at the click of a button. This will allow you to make the best decisions to keep your business the success you want it to be.

If the cash isn’t flowing for your business, contact us to discuss how we can help.

Click here to read how Microsoft Dynamics NAV has improved the financial health of small and medium enterprises.