Cash-flows are a lifeline to a business, how the cash is churned in the different activities of the organization (Operational, Investing, and Financial) to ensure profitability.
(1) Future cost-revenue analysis: One can estimate revenues subject to changing economic scenarios, but one can keep in mind the minimum cash equivalents required.
(2) Finance your costs: This approach shall be used if one does not get super discounts on cash purchases, so one shall use cards and other, online payment options to purchase , the interest and finance charges can be shown as an expenditure.
(3) Appropriate Payroll structure: The wages shall be paid on a permanent basis as the construction’s quality of work enhances in this method, one can pay weekly depending on various cases.
(4) Automatic Invoicing: The process of sending invoices shall be automatic as the delay results in an increased time gap of receipts. So it is advisable for a faster collection procedure of cash.
(5) Adopt Digital Receipts and Payments: The pace at which technology is changing and the benefits also one gets while doing digital transactions.
(6) Appoint Trainers who can be effective in the management: The organization shall appoint a trainer who shall be given incentives based on cash saving.
The author is Chartered Account by profession. She pursued articleship from the well known firms of Ahmedabad. The author has a great experience of statutory audits, management audit and Tax audits along with development of interpersonal skills, due to the disciplined environment, which benefits a professional growth to the student to bring out the best in them.