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Accounting and businesses work side by side. So, as an accounting professional, you must know that you are the backbone of businesses and SME company owners. You are more than just in charge of collecting and tracking financial records. Likewise, you have a vital role in helping your clients better manage their finances so they won’t become just another part of the 82 percent statistics of businesses that fail due to cash flow problems.
After all, with a healthy and positive cash flow, your clients can maintain their business stability. They can meet their payment obligations and plan for future investments. On the contrary, when something goes wrong with their cash flow, it can jeopardise their operations. This will lead to the permanent shutdown of their company. You want to avoid that happening. Note that when your clients succeed, you succeed. Therefore, investing in a fast, easy, automated cash flow management tool like Moolamore is extremely important.
In this blog, we listed some of the best strategies to help you and your clients enhance their cash flow and why leveraging the Moolamore app is a must to simplify your practice, achieve efficient reporting and establish trusting relationships with your clients to keep them coming back for more. Let’s begin.
Effective Strategies To Help Clients Better Manage Their Cash Flow
Monitor Cash Flow Closely With Moolamore
First things first, before you can manage or begin to plan for ways to improve it, it’s imperative to know the business financial standing of your clients. Thankfully, with a reliable cash flow solution Moolamore, it’s easier than ever to monitor every area where their cash flow is involved. With Moolamore, you can regularly check how much money is going out versus coming in.
Create a Cash Flow Forecast With Moolamore
Another crucial process to prevent cash flow hiccups and keep the macro or micro business of your clients out of trouble financially is to prepare an accurate and thorough forecast. When you conduct cash flow forecasting with the Moolamore app, you’ll be able to anticipate slow periods. This will help your clients plan in advance on what to do about them. Plus, you’ll also be able to accurately check if they have the necessary funds to keep their business up and running.
Reevaluate Spending: Cut Inefficiencies
Reviewing your clients’ expenditures is an excellent method to enhance their cash flow. It is because this is something your clients have control over. That said, you must go through each item and thoroughly check if there are unnecessary spendings to be cut down. Thus, consider also opting for a different or cheaper alternative. Doing so can help increase the profit margins of your clients and keep their cash flow healthy.
Assess Accounts Receivable Processes
If your clients’ billing processes aren’t modified and assessed often, it can spell trouble to their cash flow. Therefore, your goal is to help them standardise their billing processes, be organised and consistent when issuing invoices or doing follow-ups, and eliminate any payment roadblocks that your clients have. Remember that if your clients make it as easy as possible to be paid, they will get paid faster. Hence, automating processes like these can save time, minimise human errors, and ensure that your clients receive payments on time.
Build a Cash Reserve or An Emergency Backup Plan
Who knows what might happen—so remind your clients that it’s always a good practice to have an emergency cash reserve. Building a cash reserve or an emergency plan puts them in a position of strength and will give them peace of mind should an unexpected expense arise or their income fluctuates due to an economic downturn.
Where Moolamore Sets In: Strategic Cash Flow Management With the Moolamore App
Every day, accounting professionals like you encounter many complicated and time-consuming financial tasks. And it can be a real headache to manage on your own, let alone offer insightful advisory services to your clients. Good thing there’s an easy, strategic and smarter solution that can help optimise your workflow, produce meaningful reporting and build trusting working relationships with your clients. And it’s with Moolamore.
To delve deeper, here’s an overview of the excellent features and benefits of the Moolamore app:
- Intuitive navigation and user-friendly dashboards that allow for easier and more regular management of your clients’ cash flow
- What-if scenarios that allow you to easily forecast your clients’ finances as well as stimulate situations to help them take an intelligent approach and achieve confidence in running their business even when confronted with favourable and unfavourable events
- Real-time view of the cash inflows and outflows of your clients at any period
- Utilises high-level reporting and in-depth cash flow analytics to help you better understand your clients’ cash flow position in the marketplace. This way, you can make top-notch recommendations on how they can improve the financial stability of their business and strengthen its competitive advantage.
- Moolamore is fast and automated, so painful data entry is a thing of the past. Hence, you can get your insightful reports ready in minutes—which can be downloaded in either PDF or CSV formats.
- Enables cash flow visibility and historical financial data relevant to secure the extra funding your clients need from potential investors for their growth opportunities
- Supports multi-currency conversion to help your clients gain insights into their global cash position
- Save time by integrating seamlessly with major cloud accounting software—Xero, MYOB, Quickbooks
- Secured mobile-enabled and available on Android and iOS
- Moolamore has a team of experts that can provide you and your clients with excellent customer assistance
Indeed, poor cash flow management is the number one killer of SMEs. That said, it is your role as an accountant to help your clients get back on track by implementing the right cash flow management strategies and utilising a reliable cash flow tool like Moolamore. Doing this will make your accounting life easier and keep the financial heart of your clients’ business beating with a steady flow of well-managed cash. Thanks for reading!
One simple application—powerful financial management benefits. Request a demo of the Moolamore app now and see how it can help free up your time, become an efficient and trusted advisor and give your clients peace of mind.