Financial year resolutions to improve cash flow

New financial year

5 min read

With the new financial year just around the corner, now's the time to review your cash flow management processes and put systems into place to increase efficiency next time around.

Now's the time to consider your future income objectives. Are you hoping to develop more stable revenue streams? Perhaps you are considering growth into new markets. 

Whatever your business goals next financial year, here are five new financial year resolutions that can help set you on the right track.

Find new efficiencies

While the 2022-23 financial year is still fresh in your mind, don't be tempted to leave the stress and worry behind until tje next year  rolls by. Before banishing the previous 12 months' worth of trading into the past, take some time to analyse your business's hits and misses.

You probably have a good idea of what strategies worked and which didn't, so this time should be an opportunity to reflect on why. What changes can you make over the next year to ensure mistakes and unsuccessful attempts are not repeated?

Get paid on time

Spending time and resources on tracking down late payments can be a significant burden on SMEs, so streamlining this process is an important objective.

Make sure you get the most out of Ezidebit's all-in-one solutions. Review your processes and check you're using the system to its full potential. For example, you can set up text message alerts to remind customers that payments are due or let them know when payments fail. This reduces the need to chase clients and have those awkward conversations regarding the funds in their bank accounts.

Reduce unnecessary costs

No business can operate without expense, but minimising costs is crucial for SMEs running on limited budgets. While some expenses, such as employee wages and inventory orders are unavoidable, you may be ablel to reduce other bills or even remove them altogether.

Reviewing your budget and identifying areas where you can cut down on costs is a key consideration for improving tight profit margins. It's important to remain vigilant yet constructive during this process to avoid cutting expenses that you eventually discover were critical to your business operations.

Tighten compliance

Avoiding unnecessary penalties and legal expenses is an important business consideration, particularly for SMEs with budget and profit margins under pressure. Compliance can be an increasingly complex issue. However, as technology develops and security requirements become more expansive, it may require more attention in your business. Start by reviewing the manual processing of credit cards in your business. As you increase your customer count, you should make the most of automated payments through Ezidebit and outsource your credit card data compliance. Our Merchant Trust Initiative is a low cost option to help manage compliance, plus, it gives you access to the latest built in security scanning tools. 

Embrace technology

As technology develops, it's easy for businesses to be left behind if they don't make an effort to embrace this movement. Efficient and cost-effective software is available in any industry to help streamline business functions. Even if you aren't integrating these systems, your competitors probably are. Our team of friendly local payments experts can provide advice and assistance about the latest in payments technology for your business. If we can help, please just get in touch and we'll be happy to help. 

Keep your place at the front of industry trends by considering these important considerations for your business - and have a happy new financial year.

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