To stabilise law firm cashflow you need to balance impact, effort to implement and longer term effects. For example, delaying an office fit out, or other large project, is likely better than deferring staff bonuses. Typically, I would look to: - review existing facilities and engage the bank early around shortfalls - delay capital and project expenditure - enforce credit control policies and payment terms. Focus collection efforts on large/old balances - cut temporary headcount before permanent roles. Freeze new hires - negotiate payment plans with key suppliers. Generally, don't act unilaterally (and esp. not with balances owed to HMRC!) Once stable, you can then look to longer term fixes to the cost base and working capital model.

In my experience as a financial mentor, understanding the numbers and cash flow in your business is imperative. The numbers will tell the story of your business and ensure you are making the right business decisions. Not only should you review your profit and loss but your balance sheet is the most important report to understand. Finally, your cash flow forecast is imperative. Without a strong cash flow your business will not survive.

The following steps should be followed to stabilize cash flow: - Identification of gaps in the collection of AR. Adoption of weekly follow up with the operation team. - Offering a minimal discount for aged debtors. Ensure no outstanding debtors for more than 30 days from its overdue. - prioritisation of vendors rather than paying to all vendors. - adoption of new strategies in identification of revenue leakage and cost reduction.

Ways to increase cash flow for a business include offering discounts for early payments, leasing not buying, improving inventory, conducting consumer credit checks, and using high-interest savings accounts. Healthy cash flow is the result of operations that run efficiently and smoothly, you'll also want to make sure you're making the right decisions regarding your marketing, customer service, product or service development, and new customer acquisition.

If we want to move from unstable to stable anyhow we have to manage the proper forecasting and budgeting the cashflow. When we are talking about the budget and forecasting under cashflow will automatically raising to the cost control through not to spending the money on unplanned or unnecessarily. So, if we prepare the free cashflow we can easily identify how much the cash that I have to expand the business

Exactly, cutting costs strategically is essential. It's not about sacrificing quality but rather identifying areas where you can streamline operations and reduce unnecessary expenses. Renegotiating contracts, improving energy efficiency, and exploring cost-effective marketing options are all great ways to trim expenses while maintaining the value you offer to customers.

Two other important points to effectively manage unstable cash flow are Negotiating longer payment terms with suppliers to delay cash outflows, while negotiating shorter terms with customers to accelerate cash inflows. and Build Cash Reserves, set aside a portion of profits during periods of stability to build up cash reserves, providing a buffer during lean times and reducing reliance on external financing.

Managing receipt deadlines is very important and is directly linked to financial health. Having a receipt deadline that is too far away may mean that the company needs to disburse an amount to cover an expense before having received the sale amount. If this happens, we know that working capital is in the red. Bonus a client who has a short deadline is simple and it works. Lower unit value or priority delivery can be some examples of bonuses that customers can have if they adopt short deadlines.

Según mi experiencia y conocimiento que he palpado,puedo decir que una de las cosas que se debería considerar es analizar los costos de compra de la mercadería para la venta. Analizar los precios de venta al publico, hacer un exhaustivo estudio de mercado,para conocer mas a la competencia y sus estrategias de compra-venta.Realizar campañas de ventas y oferta de productos,a precios mas bajos sin generar perdidas.Analizar también al momento de compra de inventario el stock con el que ya contamos y centrarnos en que productos son los que mas rotan.

In my experience it is best to send statements to clients before their invoices are due, and to increase communication with them as the invoice gets older ( transportation sector)

In my current experience, Push to the customer and follow up regarding payment which is overdue and needs to further sales on cash basis.

Cash flow forecasting is one of my favorite ways to help clients feel in control of their cash. Once created, a business should live by their cash flow if they are in a tight cash position. For example, it may feel like you are ok today to make that $10k payment this week but unless you plug it into your forecast, you are going blind as to how that might affect you in 4 weeks when you might have less receivables due and have since run two payrolls. You will also be able to see if your current level of spending and income will sustain you. Yes your profit & loss should mostly answer that too but this is just another tool to help visualize it and it considers ALL cash inflows and outflows.

Use a realistic Budget based on historical data from your Profit and Lost to help you forecast your projected cash flows. Stick to your proposed Budget, review it monthly or quarterly at minimum, and adjust your forecast model based on your actual statistics that come from your budget versus actuals. Are you on target with your budget vs actual? What does the future hold if you hold steady at your current rate? If income is steadily increasing and expenses are holding steady your projected cash flow may increase allowing you to look at adding something in the future. More often than not, clients DO NOT review their financials, we offer a Fiscal Fitness Review/Consultation every quarter to ensure clients understand their business’s health.

Below factors are important for managing company cash flow: - Weekly Cash forecast on receivable and payable - Monitoring AR closely and make sure timely AR collection - Budget spending/AP, make sure cost/AP is under control - Improve and secure profitability, such as increase gross margin - Improve and secure production capacity, as the production output can impact the sales

Managing unstable cash flow requires a proactive approach to ensure financial stability. Actually I agree with all of this points mentioned here . And we can also do Revenue Diversification by Explore new revenue streams or enhance existing ones. This can provide stability by reducing reliance on a single income source. Emergency Fund by Build and maintain a cash reserve for emergencies. This buffer can cover shortfalls during challenging periods. By implementing these strategies selectively based on your business's unique needs, you can effectively manage cash flow fluctuations and maintain financial stability.