Cash Flow Management – Important to know which phase of business development your company is in right now!
Businesses in Singapore generally are categorized into 4 main areas – Survival, Growth, Stabilising and Maturity.
The environment for your business in each of the category differs greatly due to the current economy, global or local market, your industry, your nature of business etc. In addition, whether your business is international or local may result in different tax implication, financial issues, legal proceeding and risks involved.
Therefore, what is awesome about having business advisory services on cash flow management is that it helps businesses like you to develop the right strategy based on the phrase of your business development.
Below is an illustration of business advisory services focus on cash flow management for the different phases of a business. Note that this is only a general guide. We all know that nothing is absolute in this world and that no two businesses behave the same way.
If your business is less than 3 years, then you are probably at this phrase. Business advisory services will primarily focus on ensuring that you adopt proper cash management control. You will want to minimize doubtful debt and do not want payment from your clients to delay so long as it would affect your cash flow since cash is king. Your risk may only be your initial capital and time spends working on your business. Tax implications will be at a minimum since companies are given 100% tax exemption of up to $100,000 for the first 3 year of assessment from the date of incorporation. However, if your business is that of a sole proprietor or partnership (LLP), you will not enjoy full tax exemption but can claim deduction under your personal income tax. Your main objective is to develop sound marketing plan that generate you positive return of investment (ROI) for your business and maximize your revenue.
As you start expanding your business, you will begin to realise that you as a business owner have only 24 hours a day like everyone else. In order to achieve much more, you will need to hire staffs who are seeking jobs to free up some of your time. Business advisory services on cash flow management provided will seek to improve the processes of your business developments such as recruitments and the finance of your business by applying loans from banks. This is the stage where you need to implement some level of technology to aid you in your operation and systemizing your work process. You also need better accounting software from authorised provider to keep track of your business financial health in detail, email responder, getting external corporate support services from firms to assist you such as branding from brand consultants, networking with members of associations to widen your contacts and reaching more markets. Training of employees will be your main concern to support you in business operation.
This would be the point where you need to get everything in order. Business advisory services will view other aspects such as legal and tax issues arising. If your company have corporate shareholders or have more than 10 million gross sales, you will need audit compliance from audit firms. Tax advisors probably can assist you with the best practice of tax planning to minimise income tax payable. You will need to streamline your business operational process so that it can run with or without you. Automation of your business will be your primary goal and you may even start consider Initial Public Offers (IPOs) to get your company listed on the Singapore stock exchange. Of course, having auditor’s report will provide the public with the assurance that your company information is true and fair. You will probably need professionals who can run your company for you so that you can explore further opportunities that can help your business further.
If you have reached this stage of your business development, then you are probably very successful as a business owner in terms of cash flow management. Business advisory services will focus on the protection of your business in all aspects. You must ensure that your insurance policies cover most litigation from negligence or lack of exercising due diligence etc. Internal control review should be strict and include regular internal audit to prevent and minimize the occurrences of fraudulent activities in your company. If possible, you may also develop franchise model for your business or consider mergers and acquisitions of Small Medium Enterprises (SMEs) to leverage on the strengths of each other.
Benefits of business advisory services on Cash Flow Management
- Understanding grants and funding available from our governments assistance programmes and how you may be able to tap on those.
- Assisting businesses like on tax benefits given by Inland Revenue of Authority Singapore (IRAS), for example, the Productivity and Innovation Credit (PIC).
- Formulation of growth strategies customised to your business needs, allowing you to adopt the methods best fit to your budget.
- Helping you strengthen your cash flow management and capital structures of your business to weather through tough time during the economic downturn.
Manage your Cash Flow and Grow your business, or you will be left behind!
Recognising that many business owners are good at what they do, yet lacking knowledge in other aspects of their businesses, it result in stagnant growth and with the dynamic business environment and steep competitions, you will either grow or decay, isn’t it?
Maximize the value of your business with the some of the business advisory services other than cash flow management:
- Business Financing
- Risk Management
- SWOT Analysis
- Internal Control Review
- Financial Analysis