All companies, regardless of their size and their sector of activity, must have controlled a series of key variables for the proper management of their business. Among them, it is worth highlighting those that have to do with the liquidity of the company , a fundamental aspect to avoid situations as complicated as a suspension of payments that can inexorably lead to a bankruptcy .
Among them, perhaps the most important indicator in relation to liquidity is cash flow . It is a variable that reflects the current flow of collections and payments , and that tries to explain the current treasury situation of any company. Put simply, it is used to determine how much hard cash we have to pay our suppliers, our employees, public administrations and to make investments, among many other things.
And as the daily activity of the business does not stop or wait for anyone, it is essential to have a sufficiently exhaustive control to avoid frights and operate with greater confidence . Therefore, keeping a daily or weekly control of our treasury is essential. But how to put it into practice? We leave you with some tips.
Do not forget to take your cash flow wherever you go
The current tools allow us to take almost all the accounting of our company to any place, and monitor it from our mobile phone. Therefore, it is convenient to elaborate more or less complex spreadsheets and reflect the state of our cash flow . In this way, we can know at all times what is the current state of our treasury and set alerts when things do not go so well.
Do you think all customers are going to pay you?
The most reasonable thing is for all customers to pay their bills on time. However, there are some circumstances that can cause delays in payments or even defaults . For this reason, it is convenient to establish a contingency plan in case some delinquent clients arise through some type of provision that reduces this risk.
Control the costs of your business
Although the revenues of any business are unpredictable variables that are beyond the control of the business , operating costs are always susceptible to being reduced. Calculate your costs by areas and the percentages they represent on the volume of your business, setting limits to limit how many funds are going in each line to avoid exceeding them.
Determine your balance point
From the point of view of cash flow , the point of equilibrium is that in which revenues minus expenses result in zero. It is important to calculate it to know if you arrive or not to the requirements of collections that you need to maintain a margin with respect to the payments with the objective of reducing your stress in a significant way.
Controls the period of payment to suppliers and collection to customers
The billing process does not end until the collection of our customers is received or payment is made to suppliers. To have it under control, it is advisable to keep a clear record of the bills issued and issued to you , as well as the collection and payment times of each of them, and that this information is structured in a clear and visual way, establishing alerts in if necessary.