In this new article from Academy Orama, we would like to share with you a series of useful tips so that you can keep your company’s finances and, above all, your cash flow under control. Don’t miss our tips to improve your company’s treasury control:

  • Pay attention and anticipate as much as possible: You must have full control of the cash flow to be able to identify fixed and variable cash inflows and outflows, and place them in time to be able to build the cash flow forecast.
  • Constant monitoring: Cash flow should be reviewed on an ongoing basis to avoid stagnation and management surprises.
  • Appoint a cash flow management professional: It is important to have a person who can manage the cash flow to be able to manage the company’s treasury and can manage the information in case it is needed, to avoid possible mistakes or to improve in aspects that involve the company’s growth. In this sense, a CFO is the ideal figure for an excellent treasury control.
  • Manage technology: Using digital tools such as Orama, helps companies to obtain results in less time and automate cash management more efficiently. Example: Orama is an automated treasury management software. It is a tool that helps you to organize and control in a simple way, the past and future of your company.

Treasury control in the company

Improve payment terms

  • Manage your payment on time: Not getting paid on time can threaten the financial health of your company. Getting your customers to pay on time is an important way to avoid stagnation of your cash flow.
  • Reward cash payments: Having your customers pay in cash will help your cash flow to be able to cover their liabilities more quickly. One method you could use is to give a discount to customers who pay in cash to encourage them to pay in this way.
  • Manage the payment to your suppliers: You must be attentive to your next payments so as not to put your cash flow at risk. Exhaust the end of the deadline to settle your bills, but never forget to pay them. Another good option is to renegotiate these payments with your suppliers to extend the liquidity time.

Increase sales and reduce costs

  • Reduce unnecessary costs: Perform an analysis of the company’s needs versus indispensable purchases and expenses. Example: Computers, use online modality, negotiate with your suppliers, among others.
  • Increases sales: Seeks for the company to generate the highest revenue. Example: Segmenting customers better, increasing prices, being innovative, among others.

Manage your cash flow

Reserve a portion of the results: When cash flow is good, actions should be taken to increase cash flow. Example: investing, expanding, borrowing more capital and undertaking new projects.