Cash Management for Retailers
In the light of COVID-19, we understand the difficulties retailers are facing regarding their business operations. Consequently, Cash Management is one such important factor that is concerning retailers in the current situation. Therefore the Teranoid team has compiled some effective Cash Management tips for retailers to get their cash flow running amid the Coronavirus.
Cash Management during COVID-19
Certainly cash flow becomes difficult when the money is not flowing normally. Most importantly this is the case when a calamity befalls and the retailers are forced to close their businesses. Therefore in such a situation, retailers should perform the following tasks:
Check the Cash
Firstly retailers should check the amount they have in hand. Consequently they can plan their business proceedings in the coming weeks accordingly.
Secondly, retailers should count their inventory. That is to say, they should know the stock that is available to them in their stores. Further if there is excessive stock, is there a possibility that you can liquidate your stock? If yes, then do so urgently. Moreover retailers can know the products most in demand through their Point of Sale System. Consequently they can plan selling those products to the customers online, in case the store is shut down.
Left Payments and Debt
Thirdly, retailers need to ensure the amount that is due on them and if there are any other payments that they need to make. Therefore, retailers can ask the concerned persons to give them more time to pay their debt, if possible.
Prioritize the Business Needs
Certainly retailers need to focus on the tasks that are of most importance in this time. That is to say, retailers need to cut down on their expenses. They should spend money on only those items that are paramount.
Improve the Store’s Cash flow by following Cash Management Tips
Below we have discussed the essential Cash Management tips that retailers can follow in their stores.
Cash Management Tips #1: Advanced Inventory practices
Retailers can ensure through their inventory check that the products that are in stock are relevant and in demand. Further they should also see that these products should be sold at a healthy profit. Moreover retailers should improve the value of their stock. Another effective way for cash management is to liquidate excessive stock.
Company Insurance Policies
Certainly retailers should view their insurance policies frequently so their business is saved in troubling times. The insurance changes with each passing year. Therefore keeping a check on these policies is essential. So companies having the right insurance policies will have more chances of saving themselves in these times.
Lower your Fees
Retailers should also review their card service fee. That is to say, they need to be sure that they are not paying extra money. Therefore for this purpose, they need to discuss this issue with the credit card processors. Further if retailers use their cards very often for transactions, they should see if they can get better rates. Moreover, retailers should try to see if they can find better and more favorable terms elsewhere.
Lower costs and Business Hours
Any expense that is not contributing to profits and sales in any way should be cut down. Further retailers should monitor the hours or the time that has least sales and customers. As a result, retailers can reduce their business hours. Further they can perform some other essential business operations at that time. There is no point to just sit and wait for the customers as it will increase the expenses and give no profit to the business.
To conclude, retailers should always try to reduce their expenses whether there is a calamity or not. Hopefully the tips mentioned above shall help retailers with their cash management.