Finance and Accounting Services in the Philippines
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Cash flow is the lifeblood of any business. The sources of cash inflow may be several, including payments from clients, receipt of a loan, infusion from an investor, or from interests accrued through investments and savings. This incoming cash can later be used as payments for things which help to run your business. This may include expenses like paying for stocks or raw materials, rent, employee salaries, and other overhead expenses.
For company managers and owners, cash flow management can become a huge and cumbersome task. Cash flow issues may affect the business drastically and have an effect on the revenues generated and the overall profits. Companies need to be aware of the latest trends in payment practices and future predictions of cash flow management. This will help them to tweak their approach and streamline their processes in order to ensure that their business runs smoothly. In this article, we have listed some of the trends in small business cash flow management and how it will affect businesses in the days to come.
Cash flow management for businesses can make or break the success of any company. It is important that owners and managers understand this and take steps to improve their processes. Here we have listed some of the latest treasury trends which can affect your business in a drastic manner -
Looking at the slow state of the today’s economy, we will see more and more companies moving towards other fields of business. Companies will start providing new services and developing new product lines in the coming year. Old services and products may not be completely stopped but will continue to run in parallel.
Effect - With the diversification in other fields and newer service lines in place, this will boost the company’s cash flow and help to maintain a healthy cash balance. Incoming funds will increase as most companies will continue to use the existing resources to provide the new services and develop new product lines.
With the rapid growth of technological developments n the past couple of decades, we have seen a dramatic change in the way businesses are handled on a day-to-day basis. With computers, smartphones, and other technologies getting faster every passing day, communications have become fast and costs have reduced by a considerable amount.
Effect - New technological developments are speeding up the communication between different business organizations. This has also reduced the cost of communication by a considerable amount. In the future, as businesses move towards electronic communications on a daily basis, their overall productivity will also increase and in turn keep a check on the cash flow budgets. More streamlined processes will also help to reduce human error rates and provide more accurate services to both clients and customers.
With increasing number of devices being used in daily business activities, there is an increased amount of threat to the data being breached. The existing security features are not well-equipped to protect confidential data from any kind of severe threat. In the coming year, we can expect to witness a large number of companies investing in strengthening their security features.
Effect - With more investment in making the data security features of the company better, there will be lower perceived risk of important data being breached or hacked. This will help the companies to operate their financial cash flow without any threat and in a completely safe manner.
Businesses are slowly moving towards making use of a variety of specialized applications which helps them perform different tasks. These applications, generally used by most people for booking tickets, shopping, paying bills, banking, ordering groceries, etc. are exceptional marketing tools. In the coming year, we will see a number of companies using videos for their marketing purposes and leveraging such applications.
Effect - With the number of applications increasing, companies will look to advertise their services/products through these apps. Cash flow processes will be designed keeping these factors in mind. Making maximum use of the Internet for advertising will help in improving business productivity and efficiency at a very low cost.
Companies today are increasingly facing a large amount of workload, and are therefore looking towards the option of outsourcing as a valid proposition. Outsourcing some part of the business process to a service provider will prove to be beneficial for both small and large scale companies in more ways than one. In this way, companies will have access to a talented pool of domain experts working for them.
Effect - With access to the best resources and state-of-the-art infrastructure of the service provider, companies will have more time on their hands to focus on core competencies. Cash flow plans and corporate money management will look to incorporate more outsourced services to external service providers. This will help companies to save a considerable amount of cost and hence improve the treasury management processes.
The government has advised banks and financial organizations to loosen the lending to businesses. Despite this, banks continue to be reluctant while lending to businesses. This reluctance of banks can lead to some serious consequences for businesses looking to generate new loans.
Effect - Businesses will have to learn to cope with the slow and tight business credit in the coming years. Cash flow may get affected with the low business credit available to most companies to operate. Therefore, to safeguard against the same, most companies will look towards reducing their expenses so as to be able to operate on cash.
Outsource2india has been providing the most efficient cash flow management services and a host of other finance and accounting services to clients around the world. By outsourcing your treasury management requirements to us, you can have access to our specialized capabilities which can in turn help gain extra competitive advantage in the market. We try and understand your projected sales, existing commitments, and expenditures before we take up your project. Our team of financial experts is well trained and also specializes in providing the best-quality cash flow planning and cash flow budgeting for companies.
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