Tune-Up Your Business Finances With This Checklist

At ALTIUS we think of the financials as the engine of a business. A company with well-maintained financials thrives in comparison to their competitors. Just like a well-oiled and tuned-up engine, it is important that business owners regularly tune-up their financials to help their business perform at maximum potential. The fuel in any business is cash and we help businesses make the most efficient use of that fuel to turn more profits. Below are a few things we help clients with to “tune-up” their financials:

SALES & CUSTOMERS

·       Are you overpaying in merchant service fees? A 1% difference in what you pay here can make a big difference on the sales that you keep. Check if your current contract allows for variable rates as these can result in unexpected cost increases.

·       How quickly is cash sales deposited, do you utilize mobile deposit and ACH? By quickly getting cash into your account, a business can minimize loan or other capital costs.

·       Do you have a good collection process? Are you offering trade discounts?  Minimizing time to collect can increase cash flow and there are new services that automate much of the process.

·       Will factoring receivables result in a better source of cash than traditional financing? Often not, but it is important to compare the cost of various sources to ensure you’re minimizing debt costs.

INVENTORY & VENDORS

·       Does your business have a lot of cash tied up in inventory? Cash flow issues can easily be remedied by liquidating inventory through sales to surplus retailers, through promotions or using online stores like eBay and Amazon.

·       Is your purchasing behavior overly capital intensive? By not ordering in bulk and using a “just-in-time” purchasing system you may be able to significantly reduce the money you are borrowing.

·       Are your suppliers willing to negotiate their terms of payment? If they require bulk purchasing they may be willing to extend no interest credit on those purchases.

·       Do you regularly audit your vendors? An audit of your largest overhead expenses like common area maintenance charges from your landlord or internet and phones costs can often result in significant savings in the long term.

ASSETS & INSURANCE

·       Are you using all of the assets that your business currently owns? Asset utilization analysis can quickly identify assets that may be better off sold for the cash and if needed, rented in the future.

·       Do you review your insurance policies every year? A good independent broker can help you identify cost savings through comparing providers and reducing excessive coverage.

TAXES & INCENTIVES

·       Is deferring income or accelerating deductions possible? A deferment in tax due to the government can be the difference of unnecessary spending on loans that may be required to pay tax.

·       Are you taking advantage of all the government programs available for businesses? There are over 3,000 business tax and other incentives programs in the US that if utilized can be a tremendous source of non-dilutive monetization.

If you would like to learn more about how ALTIUS can help “tune-up” your business, please click here to schedule your free consultation today.