Every business owner must prioritize a good financial position as it affects the company’s sustainability. The financial position of your company is determined by many factors, not just the profits. If you have a business and want continuous growth and success, you must look at every aspect and analyze elements from profits to unpaid invoices.
Assess and identify the areas that need to be improved. From there, you can work your way up and take action to produce better outcomes. If you need any recommendations on how to improve the financial position of your business, the list below might be helpful for you.
1. Reduce Your Expenses
This is by far one of the best ways to improve your company’s financial situation. According to accounting services in the Philippines, lowering your business expenses will be helpful for the improvement of your company’s financial position. Identify every aspect of your business and see if there are any cheaper alternatives for the supplies, equipment, and services that you use. You may also check if there are better terms for your insurance policies and bank accounts. For larger expenses, try to find out if you can apply for periodic or deferred payments to make more cash available for your company.
2. Considering Lowering Your Prices
If possible, try lowering the prices of your products or services. Lowering it slightly can make your products or services look more appealing to your customers. You need to make sure though that you are not losing money.
3. Try Increasing Your Prices
Lowering your prices might work but in some cases, increasing your prices may also be the key to boosting your financial positions. There are businesses that have prices that are below the market price. If you haven’t modified your prices in a while, tax services in Manila recommend increasing your prices a little to avoid losing many customers. Explaining to them how you are trying to beat inflation to sustain operations might help.
4. Sell Unused Assets
If you need immediate cash, you can try selling your unused or unwanted assets. These could be assets that are taking up your storage space. You can sell those assets, have more storage space, and also have more cash. For larger assets, you can try to put them up for auction or sell them online.
5. Consolidate Your Debt
Take a look at your current debt. If you have a significant amount of debt, it may be better for you to consolidate it. It is better and much simpler for you to refinance your debt into a single payment. Research more and find out which plans are worth committing for a new arrangement.
6. Recover Unpaid Invoices
Bookkeeping services in the Philippines recommend looking at records for outstanding payments or unpaid invoices , which can be harmful to your cash flow and the health of your business finance. Make sure you remind your debtors of their obligations. Enforce strict due dates and specific terms for overdue payments before making sales agreements. If it still continues to be a problem for you and your business, it might be a good sign for you to try out and make use of a debt collection agency.
7. Offer Multiple Payment Options
If you offer multiple payment options, your customers will have more options to pay. The more options that they have, the more chances your business can make sales. Check and see how many payment options you can offer to your customers from cash, credit, check, and e-wallets like GCash or BDO Pay.
8. Apply for a Business Loan
Doing this can help you get the capital you need to improve your company’s financial position. Try exploring invoice factoring if you do not have an established business credit yet or if the growth rate of your company makes your bank uncomfortable. Raising money on your own from your savings, from friends, or from families, will put you in a better position and help you have more proper negotiations from different institutional sources.
9. Try Crowdfunding or Raising Money with Grants
Research any grants that you might be eligible to apply for like government programs tailored for MSMEs. Crowdfunding is also another option you can look into especially if you have a good and innovative product or service.
10. Improve your Marketing Plans and Strategies
Make sure your marketing is up to date. If your marketing is not up to date, it is time for you to improve it. Check out the latest marketing platforms and options and be knowledgeable of the current trends. Ensure that your ad campaigns are tested to get a solid return on investment (ROI).
If you need assistance in monitoring your company’s financial position, we offer accounting services in Pasig. With our professional guidance, we can sport errors, verify the accuracy of records, and provide insight to help you improve your operations.