{"id":19828,"date":"2022-11-29T14:21:39","date_gmt":"2022-11-29T14:21:39","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/blogs\/?p=19828"},"modified":"2022-11-29T14:21:41","modified_gmt":"2022-11-29T14:21:41","slug":"the-importance-of-cash-flow-for-tourism-businesses","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/blogs\/the-importance-of-cash-flow-for-tourism-businesses\/","title":{"rendered":"The importance of cash flow for tourism businesses"},"content":{"rendered":"\n
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With the busy Christmas period approaching, businesses operating in the hospitality and tourism sector will be dealing with increased demand.<\/p>\n\n\n\n\n\n\n\n

Now more than ever, it is important to ensure your cash flow is as strong as it can be.<\/p>\n\n\n\n

What are the basics?<\/strong><\/p>\n\n\n\n

When it comes to running a business, having a solid cash flow is vital. However, poor cash flow is one of the top reasons that tourism businesses shut down.<\/p>\n\n\n\n

It\u2019s a straightforward concept, balancing cash coming into the business against cash going out \u2013 inflow and outflow.<\/p>\n\n\n\n

Inflow into the business can be defined as the payments received from customers for food and drink, but can also cover finance and borrowings.<\/p>\n\n\n\n

Outflows are more complicated and cover costs like rent, rising utility bills, payroll and produce suppliers, not forgetting general maintenance and repair costs for the premises.<\/p>\n\n\n\n

That is where the latest technology can make life easier by keeping track of day-to-day costs as well as often being compatible with the software used by their accountants.<\/p>\n\n\n\n

Forecasting is key<\/strong><\/p>\n\n\n\n

With analysis from a point-of-sale system, businesses should be able to project cash flow for the year ahead.<\/p>\n\n\n\n

Comparing data from the previous year will show the highs and lows of performance and allow planning for seasonal fluctuations.<\/p>\n\n\n\n

Cut back when needed<\/strong><\/p>\n\n\n\n

If you are behind your forecast, action needs to be taken to reduce costs.<\/p>\n\n\n\n

This could include cutting back where necessary and trimming menus, including the least popular dishes, and closing early when trade is slow to make energy and payroll savings.<\/p>\n\n\n\n

Let your cash do the talking<\/strong><\/p>\n\n\n\n

Rather than taking stock on credit, for example, talk to your vendors about a discount on your orders if you pay in full, upfront.<\/p>\n\n\n\n

A bulk cash order could persuade them to cut prices as they also have to think of cash flow.<\/p>\n\n\n\n

Get the paperwork in order<\/strong><\/p>\n\n\n\n

The numbers and paperwork you face may seem daunting and complex, but that is where your accountant can help.<\/p>\n\n\n\n

We can advise on cash flow, ensuring that your books are up to date so that you do not fall foul of any tax issues.<\/p>\n\n\n\n

Need help with cash flow in the tourism sector? Contact us today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

With the busy Christmas period approaching, businesses operating in the hospitality and tourism sector will be dealing with increased demand.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,4,55,107],"tags":[],"class_list":["post-19828","post","type-post","status-publish","format-standard","hentry","category-blog","category-business","category-business-advice","category-tourism"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/comments?post=19828"}],"version-history":[{"count":1,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19828\/revisions"}],"predecessor-version":[{"id":19831,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/posts\/19828\/revisions\/19831"}],"wp:attachment":[{"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/media?parent=19828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/categories?post=19828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.moorethompson.co.uk\/blogs\/wp-json\/wp\/v2\/tags?post=19828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}