After the downturns and instabilities of recent years, every business understands the need to manage its cash closely. Whether you’re bulking up reserves to manage future growth or doing accounting gymnastics to stretch your thin reserves, every finance department has to be obsessed with looking after every penny, and making cash work hard and flow freely.
With such a focus on controlling it, why does cash management seem so hard? The principles of cash management are well documented and relatively simple. So does it come down to having the right tools to help provide the information to make the right decisions?
Simplify cash management
We’ve all been there, flicking from one screen to another, furiously tapping away on the calculator and wondering why the numbers don’t add up. If you’re doing this, maybe it’s time to review the tools you’re using to track and manage your finances?
Simplified cash management is what’s needed ‒ just by selecting a day, week or month, create a cash flow calendar that lets you look back (or ahead). See exactly how your funds flow in and out of your business. Get to see clearly your actual cash on hand, as well as all your deposits and debits across all your bank accounts, with bank integration and reconciliation tools that you are simple to use and set up.
You’ll also want to be sure your customers are paying you on time. You need the ability to track collections, to keep tabs on accounts receivables and make sure you’re getting paid as quickly as possible. What would be useful is a simple, out-of-the-box report, that could pull a list of customers with balances over a particular threshold (of your choosing), allowing you to prioritise and evaluate their history. You’d be able to see at a glance if the balance issue is a one-time occurrence or a trend you need to address.
Better decisions
When you make fast, informed decisions, it has a direct impact on your bottom line. Managing a business is all about making smart decisions ‒ from marketing and inventory to customer credit limits, discounts and payment terms ‒ to bring down costs and turn margins into cash flow.
Microsoft Dynamics NAV can help facilitate your decision-making by providing you with the right information, at the right time.
•Optimise your resources and improve end-to-end processes to increase your profitability using predictive analysis.
•Increase staff productivity and drive accuracy by automating your purchasing processes using order-point minimums and maximums, as well as built-in workflows.
•Streamline supply chain processes and inventory management - and reduce operational costs companywide - with the ability to track turnover and maintain the right stock levels.
Read how NCFE improved its cash flow and managed credit control by switching to Microsoft Dynamics NAV.