Candice Davis is a finalist in the Mrs. South Africa pageant, as well as the owner of Perfect Ledger Strategic Finance, an accounting firm she’s been running for the last six years. She answered some frequently asked questions from our readers…
HOW CAN I MANAGE MY BUSINESS CASHFLOW BETTER?
To manage your business cash flow better, start by creating and regularly updating a cash flow forecast to plan for future inflows and outflows. Tighten credit control with clear payment terms, follow up on overdue invoices and offer discounts for early payments. Negotiate better payment terms with suppliers and manage inventory efficiently to avoid excess stock. Regularly review expenses and cut non-essential costs, speed up the sales cycle, and consider a line of credit for emergencies. Use accounting software to monitor cash flow, review your pricing strategy, and explore options like invoice factoring or instalment plans. Build cash reserves during peak seasons if your business is seasonal.
HOW DO I CUT COSTS WITHOUT SACRIFICING QUALITY?
To cut costs without sacrificing quality, optimise operations by streamlining processes and automating tasks. Negotiate better supplier terms, use technology for efficiency, and focus marketing on high-return channels. Evaluate and prioritise profitable products or services, monitor inventory to reduce waste, and consider cross-training employees. Use data and customer feedback to maintain quality, and explore partnerships or outsourcing for non-core activities. These strategies can help reduce costs while maintaining high standards.
HOW DO I DRAFT A BUSINESS BUDGET, AND WHAT TIPS DO YOU HAVE FOR ESTIMATING BUSINESS VARIABLE EXPENSES?
To draft a business budget, identify revenue streams, estimate income, and categorise fixed costs (e.g., rent, salaries). Estimate variable expenses based on historical data or sales projections, include one-time expenses, and build a contingency fund. Regularly review and adjust your budget. For variable expenses, use historical data, benchmark against industry standards, consider seasonality, and consult suppliers about price changes. Create best-case and worst-case scenarios to stay flexible.
Details: www.empowermentvogue.com; candice@davisdbn.com;
IG: @candice_davisdbn; FB: Candice Davis Mrs South Africa Finalist 2024
