Every time you turn on the news, you are hearing about the impacts of inflation pretty much on almost all goods and services consumers and businesses require. In response to rising inflation, the Bank of Canada has raised interest rates which further squeezes consumers and businesses alike with higher interest rates. Many small businesses are still trying to recover from the pandemic where they incurred debt and lost income.
At this point in time, it is very important that businesses are accurately monitoring and forecasting their cash flow needs. Many businesses that could have been successful go under as they did not carefully manage their cash requirements. This is not the time to run out of cash leaving you scrambling for money. It’s imperative to have proper financial controls and policies in place to ensure this never happens to your business. Statistics Canada1 reported that small businesses were more likely to expect a drop in sales relative to larger businesses. With a drop in revenues, it’s time to re-examine your accounting services to see what can be done to optimize your cash flow to improve your financial situation. Not only can we provide accounting services, but we can also be an advisor providing business options to help you weather the storm. Let us be your partner and we can work together to help you become more resilient as you come out of the recession! Contact us today for your accounting and business needs!
1. https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2022004-eng.htm
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