In times like the current one, with the COVID-19 pandemic, what could once mean best practices can become survival necessities. If you care about your company's cash flow, you should be aware of some aspects that can help provide access to capital and expand what you already have. For some companies there are actions that are already part of the organization's culture, but in other cases a change in the managerial vision is necessary.


Before any action, it is recommended to separate planning into two main categories: operation and investment/financing. Although operations tend to have an immediate effect, but with less impact, both categories can have positive effects on cash flow.


Within the scope of operating cash flows, you should work with projections first. By completing a cash flow projection, you will know how aggressive your actions need to be. Analyze how much time you have, if you have enough for days, a month, a week. Then you can prepare a schedule by project, so you have metrics and know who is helping and who might be hurting. Be as diligent about billing and overcharges as possible by tracking invoice receipt confirmations.


In accounts receivable, delegate to an employee who follows up on collections punctually, calling on the due date and recording appropriate charges in a timely manner to preserve your rights. If you have defaulters, it's time to follow up on them too. As for accounts payable, be sure to follow up on accounts assiduously, including advance discounts. You can check providers that accept credit cards for settlement, so you gain extra interest-free time on cash flow.


The Payroll and Benefits area also requires a lot of attention. Failure to pay payroll taxes can lead to high fines, so it is important to check in times of crisis whether employees accept reduced workload to avoid layoffs. And if they are essential, it is important to keep up to date with labor laws, to be aware of the periods and legal rules of dismissal.


If the crisis really takes your company to this point, operational changes alone may not be enough for its continuity. Then, for more substantial access to capital, you can adopt financing/investment tactics. At such times, incentives arise to help affected borrowers, from deferring payments to significantly lowering interest rates. Talk to your bank to schedule payments and also consider an increase in your line of credit to help with future cash flow constraints. Loans are also a good option for emergency capital.


TATICCA – ALLINIAL GLOBAL has in its team masters from different areas, who also work as professors in universities, internal courses and courses in company. The dynamics of the corporate world requires professionals to be constantly updated on different topics. In this sense, we provide training focused on the areas of auditing, finance, governance, compliance, accounting and taxation.