With the continuous roll-out of COVID-19 vaccines, businesses are expecting to get back on their feet this year. Some businesses may have struggled staying afloat, and this is where a Nashville CPA can help.
You may think hiring an accountant might just be another overhead expense, but it comes with a number of financial benefits, especially if you want to improve your cash flow. Payroll and tax preparation are just a couple of the areas that can be looked into to help your business overcome financial challenges. Here are a few tips on how to improve your cash flow post-pandemic:
Evaluate your expenses regularly.
While many have implemented salary cuts and retrenchment to help mitigate the impact of the health crisis, businesses should also look at small scale financial losses. This may include subscriptions to apps, software, or any online accounts or products that are rarely used. It is also best to ask yourself if these expenses are necessary, and if so, if there are any more affordable options out there. A CPA would recommend a line-by-line quarterly check of expenses, as well as running a “profit and loss percentage of income” report.
Reassess business processes.
A lot of businesses focus on saving costs, but it is also just as important to save time to support a positive cash flow. Ask yourself if there are any business processes that can be done in less time, and if so, how you would achieve them. For example, hiring a CPA for your tax preparation and payroll gives you more time to focus on money-making initiatives like marketing and sales. Surely, you wouldn’t also have to worry about issues with the IRS. Even better, a CPA can ensure that you get to enjoy tax returns, if applicable.
Open new sales channels and incentivize your customers to pay faster.
This is one of the most workable ways to support cash inflow while tapping into your customer base. Think of areas where you aren’t maximizing sales, such as a presence on social media or implementing various payment options such as credit card or mobile transactions. You can also launch promotions that encourage customers to pay upfront or to avail an early payment discount. Depending on the nature of your business, there are many ways these marketing campaigns can be achieved with minimal spend.
Work with a trusted CPA to build better business processes and plan better for the future. While COVID-19 has affected many businesses, having access to professional assistance will equip you with the knowledge to keep your business financially stable. With the right strategies in place, you can spot opportunities for growth and manage challenges as they arise.
Sources:
How CPAs help clients reinvent struggling businesses during COVID-19, JournalofAccountancy.com
10 Ways to Improve Cash Flow, Investopedia.com
Top 5 Reasons Why You Need a Nashville CPA Firm for Your Bookkeeping
