When the pandemic hit, it impacted companies in a big way. With small and large organizations forced to close their doors, business suffered for many global leaders. Between transitioning entire teams to remote work and cash flow issues that many weren’t prepared for, it has been a challenging time for entrepreneurs, leaders, and company owners.
Pandemic or not, cash flow issues are more than just a headache. It’s a make-or-break for your business. The good news is that there are things that companies can do to manage these problems. Integrating an outsourced accounting team into your business can help improve your cash flow and get your company back on track.
When you hire an outsourced team to handle your accounting responsibilities, you gain incredible experience, expertise, and specialized background that can work great for your company.
An outsourced accountant can help you recognize areas where cash flow can be reduced, such as hiring freezes, travel limitations, and spending cuts. Your outsourced accountant can help you identify ways to avoid layoffs, such as asking employees to take unpaid leave or cut their hours. A quality outsourced firm works with all types of companies, and they can help you dig deeper to make the necessary adjustments that your company needs to stay afloat.
There is nothing surface-level about the way an outsourced accounting firm works. It’s their business to delve into your finances and uncover the good and the bad so your company is positioned for growth and success. They can help evaluate how long it usually takes your company to receive a payment and what length of time is normal for your company to pay an invoice. They can look at your inventory turnover to see how long your business usually takes to sell what it has on hand.
When you understand your company’s key performance indicators related to cash flow, you will better understand what your company needs to move into the future.
Assistance With Resources
The pandemic, in particular, brought extra cash flow issues to the table, and many companies sought out assistance from various emergency funding programs designed to provide relief to companies struggling with the crisis brought on by COVID-19. An outsourced accounting firm can help you understand the different types of assistance available, what they mean for your cash flow, and how any consequences or negative aspects might affect your company down the road.
Whether you don’t have the time to dedicate to the research or if you don’t feel completely comfortable making those decisions on your own because it’s out of your area of expertise, an outsourced accountant can be the partner that you need to help lead the way.
While focusing on future goals and the big picture of your organization’s performance is inherent to success, the details still matter, especially regarding cash conversion. An outsourced accounting team can help ensure that everything about your invoice and billing process runs smoothly and works to your advantage. They can help send accurate and prompt bills, improve your collection practices, and ensure that customers who delay their payments are contacted promptly.
Outsourced accounting can help turn those receivables into cash as quickly as possible to get what you need to keep your business moving forward.
Cash flow is the fuel that keeps your business running smoothly. When that’s in jeopardy, it can be stressful and overwhelming to manage your finances innovatively and smartly to keep your company afloat. While there are many benefits to hiring an outsourced accounting firm, improving cash flow is one that many business owners are focused on right now. An outsourced accountant helps you make decisions you’ve been putting off to help you get your business back on track and on its way to a bright and profitable future.
Notion CFO & Advisors acts as a fractional CFO/outsourced accounting firm, so you can focus on your business while we focus on the finances. Contact us today for a free financial assessment and discuss how we can help you build a better business.