Are you cash Liquid ?
Money never changes when running a business; that is, you need money to run a business. The “how” of how you make money is constantly changing and evolving. The “how” is so important because that’s how you live and provide for yourself/your family. Many business owners are wondering how their businesses will continue with the pandemic. Many people have not transitioned to an online business or platform. Some cannot afford to do that because they haven’t had their cash flow analyzed. Before the pandemic, people who opened a business, specifically small companies, did not really have to worry about cash flow. However, with the lockdown, commercial rent, and the importation of products being delayed, this can totally affect a business’s ability to run in the future. Believe it, or not many people don’t really take advantage of a cash flow service because they think it’s something to be done only if you have “staff.” That’s a big mistake. At the end of the day, an entrepreneur, although the owner of a business, is their own staff. Therefore, they need to be paid, and analyzing cash flow is a critical part of paying yourself and others. The pandemic has highlighted how important it is to know exactly where your money is going and where your money is coming from. This will also save you in terms of an audit because this will let you know how much money you can receive from the government.
Suppose you have run a business for a long time or at least ran a business pre-pandemic; you may be noticing the “how” to make money has changed. Depending on your business, you may be able to move your whole business online, or you may have enough cash flow to add an online product to your current business. The pandemic has brought around some booming new entrepreneurs, but it has also damaged many companies. The damage may be fixable by getting the appropriate financial advice. By learning where you can make cuts, you may be able to revitalize your business.
This is the time where new and old businesses could profit from an adequate cash flow analysis. Cashflow analysis has never been more important; as the lockdown continues and restrictions get lifted and reapplied, it is crucial to know where your business stands. How liquid is your business? Could your business withstand another lockdown? And for how long could it withstand another lockdown?