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How to improve cashflow visibility for your clients

Capitalise Apr 12, 2022

With all the unpredictable changes in the economy including increasing tax, rising inflation and supply chain disruptions, there’s one thing that stays the same. The importance of understanding, tracking and keeping cashflow healthy to sustain good business growth. 

 

In this troubling climate, you may be asking “how do I help my clients improve their cashflow understanding and position?'' We believe this lies in constant visibility of the cash going in and out of your client's business. The better visibility over short and long-term cashflow can help give you and your clients more time to act when there are potential cash risks. Helping to avoid insolvency and unhealthy balance sheets. 

 

Read on as we discuss the value of cashflow awareness, how to improve cashflow visibility and why in the current climate it has never been more important.


Opening up the cashflow conversation 

When clients are talking to you about their challenges, it’s very likely cashflow is up there. They may mention difficulties with making payments on time, their ability to hire new staff or a frustration with current credit terms. This can be a great time to open up the cashflow conversation and remind your clients of ways they can improve their cashflow understanding or position. 

 

In our recent Get fit for business report, we found that 65% of small business leaders rely on their accountant for advice about funding, growth, cashflow and business planning. With potential worsening economic conditions, you’ve never been better placed to talk to your clients about how to get ahead and best prepare. 

Here are some reasons you can tell your clients that cashflow visibility is helpful:

  • You’ll have the cash to pay your suppliers 
  • You’ll have enough money every month to pay employees 
  • You’ll be better positioned to order larger quantities ahead of uncertainty 
  • You’ll have more peace of mind 
  • You can focus less on making ends meet and more on business growth 


Use tools to monitor your clients cashflow regularly 

When it comes to regularly keeping an eye on your clients cashflow positions, having a tool in place can be a great time-saver.  

 

Accountancy Age states that “technology creates opportunities for accountants to provide more for their clients, to work more closely with their clients and ultimately to have better conversations with them and help them achieve their personal and business goals more efficiently”.

Our Monitor tool is a ready to go platform that provides you with real-time accountancy data. Giving you data-driven insight into your clients cashflow trends including upcoming risks of cash shortages. Helping you to mitigate issues such as late payments to staff or suppliers. 

 

With data ready, prepared and in front of you, you’ll be able to use your client meetings to talk through business strategy and goals. Helping you really understand your clients cashflow position, shortfalls and what’s needed for the months ahead. 

 

Accountancy Age suggests that automated tools mean “not only is everything done quicker, but it will create capacity, and that capacity can then be used wherever you want to use it”. 

Check out our FREE guide here, which offers some handy conversation starters to help you dig deeper into how your clients are feeling, their goals, aspirations and pain points.

If you’re a subscribed user, speak to your Partnership Manager and find out how you can optimise your Monitor platform. If you’re not yet signed up, check out our platform


Help clients plan ahead 

Tax level changes, energy cost hikes and delays in imports and exports, could make it a great time to start looking ahead at what these things mean to your clients. 

 

If your clients rely heavily on overseas customers or overseas suppliers they may begin to feel cashflow implications from supply chain delays.

 

There’s always ways to get prepared. Whether its stock-piling, changing payment terms or looking for external finance solutions. 

 

You can use our Monitor tool to view funding that fits your clients needs. Including releasing cash by refinancing assets or applying for the Recovery Loan Scheme - a government backed support scheme which ends in June.

 

Staying cashflow healthy 

As your clients go-to adviser, help them understand that their cashflow is the beating heart of their business. As their trusted accountant, you’re best placed to help them build healthy cashflow in their business. Using these tips, tricks and tools, start conversations that help to plan ahead for business success. 

To find out how Capitalise could help your clients build a healthy cashflow for their business here

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