Joseph, a small business owner based out of Bengaluru was in trouble to pay off his shop rent , electricity bills and other day to day expenses as he was not able to manage his inventory, receivables and cash.
Here the problem faced by Joseph is inefficiency to manage working capital. In the same way it is important for every business to give importance to working capital management to keep a check on their profitability and growth.
What is working capital ?
Working capital is a financial tool that measures the operational efficiency and short term liquidity of a business…
SME businesses in UAE saw a steep fall in cash flow with COVID 19 pandemic. According to a study done by PWC (https://www.pwc.com/m1/en/publications/working-capital-2020.html ), in the first half of 2020, there was 23% deterioration in the average working capital performance of surveyed companies.
What were the key drivers affecting the working capital of SMEs during the pandemic?
· Collection of payments were delayed due to lack of technological and digital back up,
· Increased expenses to manage human resources on remote working mode, for supply chain disruptions, paid subscriptions to multiple ERPs, high transaction costs on payment gateways and losses…
Any business, irrespective of its volume across all verticals, need the support of right business tools to manage working capital efficiently and get rid of cash crunch. An efficient, affordable, and young digital Fintech, like Hylobiz can technically strengthen the working capital of any business.
Working capital= current assets- current liabilities
Management of working capital aims at maintaining cash flow to satisfy short term debt and operational expenses.
Higher the working capital, higher is the operational and functional efficiency of a firm. A very high net working capital enables a business to meet all its short-term obligations.
Challenges faced by…
Cash flow is the total amount of money being transferred into and out of a business. Cash Flow is often known as ‘ lifeblood of a Business ‘.
For SMEs Managing Cash Flows is as important as focusing on Growth and Profitability because many businesses fail due to Cash Flow Inefficiency.
Also due to poor management of Cash Flows, Businesses are not able to Sustain in the long term and hence, they fall under Debt trap.
And, To Manage liquidity in Business it is important to Get Paid Faster from your clients.
Here are Few Tips that can help Businesses…
Reconciliation is a labour-intensive process, needs hours of hard work, patience and understanding and needs to be automated with the aid of a powerful tool.
Automated reconciliation, achievable through an automated reconciliation software, is meant to automatically match the invoices, accounting records and the transactions on the bank account.
Automated reconciliation can reduce cost and time, protect a business from financial risks, help smart management of audits and increase fund flow to a business. To expand your business, to understand business health and to see constant profit and growth, automated reconciliation is important.
What more do you get through automated…
As a business owner, have you observed irregularities with an invoice?
Most businesses know the importance of keeping the accounting clear, but with multiple stakeholders involved, one still faces transaction mismatch, fraud, and human errors.
Invoice Reconciliation can help you avoid any such issues. Today’s post will aid in understanding the benefits, issues of invoice reconciliation, and getting back on track with your business. So let’s get started -
Invoice reconciliation is the matching of credit and debit against the invoices/bills generated/submitted.
For example — if you a distributor of Pfizer and offer medicines to retail shops. …
Speeding up the invoice processing is the best way towards making a business invincible.
Hylobiz, a Fintech of this era, can ensure faster invoice payment processing for businesses in UAE.
1. Connected ERP helps maintaining financial records accurately and invoice distribution and reminders gets completely automated
2. No chance of late payments
3. To improve cash flow
4. To maintain good relations with suppliers and with clients
5. To satisfy employees and make them free to concentrate on analysis and decision making
6. Saves from inappropriate payments and collections
· Set payment terms clearly regarding fees and due dates,
The owner of Narayan Enterprise — Venkat Narayan Giri was looking at the ledgers, the accounting team had highlighted a mismatch of 2,34,192.43 INR. It was month’s end task and usually a mismatch of 10,000–25,000 INR was usual, but this time the sum was huge and accounting team has matched every record almost 4 times, but yet the “missing” entry was not found.
Since last week, the accounting team had been staying late till midnight to complete the month end task, and apart from the worry they were really looking tired. …
All businesses across industries can see good profits if they automate the tedious reconciliation process with the help of an effectual Fintech.
What is Account reconciliation?
Account reconciliation is all about comparing financial records or transactions to check whether two sets of data are in agreement, to avoid error and to run a profitable business.
· To maximise the return on investment,
· To catch fraudulence in business and accounting,
· To detect accounting errors,
· Increases cash flow,
· Saves money.
Challenges involved in manual reconciliation:
· Involves lot of transactions and records across multiple devices, spreadsheets, and documents
Fintech industry is seeing a robust growth in UAE with the advent of digital disruption during the pandemic and with the growing affinity towards digital payments among customers.
Hylobiz is a Fintech platform which is pre integrated with Tally, ZOHO and Quickbooks and is 100% safe and secured. The connected banking services include seamless integration of Business tools/ ERP, digital payment collections, auto reconciliation and automatic reminders. Quick clearance and settlement facility on Hylobiz platform enables you to collect payments and pay out digitally through multiple modes well on time.
The web (Sign up) and the mobile app (Download the…
SME NeoBanking products — Payments receivables, Payables and Credit scoring for SME.