3 bankruptcies in 3 weeks - 3 things I've learned 🤔
Are businesses dropping like flies these days or have we just been extra unlucky? 😭
Unfortunately, I think we're looking at a slightly more difficult time for companies that sell to retailers or luxury goods to private consumers, for example. 🤑 🤑🤑
We are closely on board when things start to go wrong for our customers. In some situations we can help make the tough decisions needed, and in others the ship can sink so fast there's nothing we can do.
The recent past has made me reflect on what we as an external finance function can do to ensure the survival of companies in the best possible way. And here are my top 3 tips:
1. Keep track of your receivables 💰
2. Keep your debts under control 🏛
3. Be ready to cut ALL the way to the bone 🔪
RECEIVABLES
It may seem trivial but we see it all the time..... that companies do not keep track of which customers owe them money. That bad payers are not followed up hard enough or that plans are made to move customers.
Of course, we have a lot of solutions that can help make this happen as efficiently as possible.
* Reminders in e-conomic
* Officebot
* Equity
* Likvido
* A sharp accountant with a phone
Depending on the temperament of the customers, a cocktail of several of the above solutions is chosen. Whatever the choice, everyone just has to agree on who does what and when and how.
GÆLD
All too often, supplier invoices are floating around in all sorts of places. Reminders come in a rush and it's impossible to find out who is owed money and when. That's why companies need to keep a tight control on where supplier invoices go so that they at least know which invoices are still to be paid.
It's also a good idea to make a little allowance for any VAT debt that has to be settled, for example, every quarter - so it doesn't come as a surprise.
DEBT + RECEIVABLES = CASH FLOW STATEMENT
Yep it's one of the hardest disciplines of them all. Using the actual figures and combining them with the future budget to see how the cash position develops - but it really is necessary to look into the crystal ball.
IN TO THE LEG
It's not always safe to grow your way out of trouble. And we are increasingly finding that our clients want even better and tighter financial management combined with a scaled-down scenario. I.e. less growth or maybe recession while closely following financial figures. This is of course not a desired scenario but it may unfortunately be necessary.
So the overall message from here is OVERALL
#denluddovnebogholder
#digitisation
#accounting
Are businesses dropping like flies these days or have we just been extra unlucky? 😭
Unfortunately, I think we're looking at a slightly more difficult time for companies that sell to retailers or luxury goods to private consumers, for example. 🤑 🤑🤑
We are closely on board when things start to go wrong for our customers. In some situations we can help make the tough decisions needed, and in others the ship can sink so fast there's nothing we can do.
The recent past has made me reflect on what we as an external finance function can do to ensure the survival of companies in the best possible way. And here are my top 3 tips:
1. Keep track of your receivables 💰
2. Keep your debts under control 🏛
3. Be ready to cut ALL the way to the bone 🔪
RECEIVABLES
It may seem trivial but we see it all the time..... that companies do not keep track of which customers owe them money. That bad payers are not followed up hard enough or that plans are made to move customers.
Of course, we have a lot of solutions that can help make this happen as efficiently as possible.
* Reminders in e-conomic
* Officebot
* Equity
* Likvido
* A sharp accountant with a phone
Depending on the temperament of the customers, a cocktail of several of the above solutions is chosen. Whatever the choice, everyone just has to agree on who does what and when and how.
You can also read more here: https://sandgravsolutions.dk/fakturahaandtering/
We've done the legwork so you can sit back and be informed.
GÆLD
All too often, supplier invoices are floating around in all sorts of places. Reminders come in a rush and it's impossible to find out who is owed money and when. That's why companies need to keep a tight control on where supplier invoices go so that they at least know which invoices are still to be paid.
It's also a good idea to make a little allowance for any VAT debt that has to be settled, for example, every quarter - so it doesn't come as a surprise.
DEBT + RECEIVABLES = CASH FLOW STATEMENT
Yep it's one of the hardest disciplines of them all. Using the actual figures and combining them with the future budget to see how the cash position develops - but it really is necessary to look into the crystal ball.
IN TO THE LEG
It's not always safe to grow your way out of trouble. And we are increasingly finding that our clients want even better and tighter financial management combined with a scaled-down scenario. I.e. less growth or maybe recession while closely following financial figures. This is of course not a desired scenario but it may unfortunately be necessary.
So the overall message from here is OVERALL
Maybe you should keep an eye on bankruptcies here:
https://lasso.dk/l/under-konkurs-og-tvangsoploesning
We have a tool that continuously monitors our customers and their customers so we are sure to get information if something happens.
