Does your cash flow keep you awake at night?
In many studies, cash flow problems due to poor cash flow management and forecasting are often cited as a primary contributor to the failure of most SMEs, and there’s no lie to that.
That’s why whether you’re a start-up or have been in business for a while, you must closely monitor your cash flow position with the help of an innovative and reliable tool Moolamore to prevent any financial troubles that may arise.
This blog post will discuss the effects of poor cash flow and why Moolamore is an invaluable asset, you must leverage to keep a healthy and lucrative business.
Read on to discover more why this game-changer adds value to SMEs. Let’s start!
How Poor Cash Flow Can Damage Your Business
Let’s look at some of the detrimental effects of poor cash flow on your SME company:
1) Inability to Pay Your Suppliers
Remember that paying for raw materials from your suppliers will be difficult and impossible if you struggle with your cash flow. Thus, this can lead to poor business relationships and injure your business’s reputation. In addition to that, it may also affect your means to meet your deadlines and contractual commitments.
2) Inability to Pay Your Staff / Employees’ Wages or Salaries
Of course, business owners want to avoid being in a situation where they can’t pay their staff or employees. This will absolutely result in lower workforce morale and can jeopardise your company’s reputation and recruitment capability.
3) Unpaid or Late Debts
Another downside of negative cash flow is your inability to pay your debts as they become due. Why? because this can strain the credit score of your business. Thus, it will also affect your ability to secure credit account privileges (e.g. loans and reasonable rates) in the future.
4) Unable to Purchase New Inventory
Insufficient cash is no doubt a show-stopper. If you cannot pay or buy new inventory, your business will struggle to function, which can result in stopping your operations.
5) Hampered Development
Poor cash flow is a serious roadblock that will hinder you from advancing your business. It will be tough to expand your product and service line, hire additional staff with talent and expertise, acquire new premises at good prices, get bulk discounts on supplies, make new investments and keep up with the competition. Likewise, hampered development will look bad for your business’s image.
6) Promotional Deficiency
Running out of cash will lead to a downward spiral in your business, especially as it correlates with your marketing efforts. This means you won’t have as much budget to invest in advertising, which is a vital strategy to increase your customer base, and you may even need to cut or minimise it. Hence, less advertising results in fewer customers and has a damaging long-term outcome on your earning or income stream potential.
7) Bankruptcy or Permanent Closure
No business owner would want their years of preparation, energy, time and effort in establishing their business to collapse and count for nothing. However, this is a sad truth that every SME may face with poor cash flow. As the old adage asserts—cash flow is the lifeblood of your business that keeps it running. So, if you run out of cash, it will also stop your operations, leading to the worst possible scenario, which is the permanent closure of your business.
Why Moolamore Adds Value: Save Your Business From Cash Flow Damages and Achieve Thriving Financial Success
Below are the powerful and transformative benefits of using Moolamore and why it adds value to SMEs:
1) Improve Your Operations / Workflow
Moolamore has a simple interface and contains features like automation, smooth integration with other accounting software (Xero, MYOB and Quickbooks) and fast report generation. Therefore, this tool can enhance and speed up the operations and workflow of your entire organisation.
Compared to manual processes and outdated spreadsheets that will only slow down your business—you can rely on Moolamore. This game-changer will streamline your financial management process. It will help you skip painful data entry and save precious time for more crucial aspects of your business.
2) Real-Time Visibility
Another significant advantage you can have with Moolamore is real-time visibility of your cash flow. This tool makes monitoring and managing your cash balance, income, expenses and net easy.
The data will show in the form of insightful but easy-to-understand trend lines and a list of transactions. With that, you can derive insights into your business’s financial performance and quickly point out if you have a negative net balance.
3) Convenient To Use and Better Collaboration
Moolamore runs perfectly on mobile, desktops and tablets and is accessible for Android and iOs systems. As a result, you have flexibility in managing your finances whenever and wherever and won’t need to get stuck in your office before you can respond more effectively to changes in the market. Furthermore, Moolamore is also an excellent tool for fostering better collaboration, particularly with your team and stakeholders, ensuring everyone is up-to-date and working seamlessly to achieve your greater goals and targets.
4) Identify Cash Flow Issues Before They Become Out of Hand
Bear in mind that cash flow issues are early warning signs of business failure. Thankfully Moolamore can save you from the pitfall. This tool empowers you to easily identify and mitigate these issues before they become long-term effects that may completely damage your business’s financial health.
5) Plan Smarter For Your Next Milestones
Through Moolamore’s scenario builders and comprehensive analysis features—you will be ready for every financial “what-if ” that will come your way.
See how easy it is to build and run scenarios with this tool, helping you examine and measure how your decisions, plans and possible situations will affect your cash flow. (e.g. offer new services and products, branch out, explore outsourcing through The Lead Enquiry, recruit new employees, purchase new equipment, experience a decrease in your sales, lose a client, amongst other things)
And with that, it gives you a heads up on how to allocate your resources best and plan better for your next business milestones accurately and confidently.
6) Gain Competitive Edge
From accurately assessing your ins and outs to tracking key performance indicators—leveraging the Moolamore platform will help your business thrive in today’s fiercely competitive landscape. This game-changing tool has everything you need to solve your financial worries, stay ahead of the curve and reach your financial goals.
7) Data Security is A Priority
Say goodbye to unauthorised access, identity theft, data breaches and all forms of cyber threats for good. Moolamore utilises cloud servers and bank-grade authentication. Rest assured that all your reports, data, and confidential information are completely safe and sound.
Final Takeaway
And there you have it! You’ve seen what poor cash flow can do for your business. Therefore, it’s time to make a smart move and utilise the Moolamore platform to reap its added value benefits that will enable you to ace your financial success. Thanks for reading!
Embrace a rich-feature yet simple cash flow tool to prevent financial pitfalls from damaging your business. Sign up today!
