How Can A Company Improve Its Financial Structure?

[Good-Guy]

The management and maintenance of assets, liquidity, finance, liabilities, etc is one of the basic and fundamental principles of financial investments and financial management. There are many big organizations in the world that have a really outstanding financial system and this is also one of the biggest reasons why they tend to survive. A company that does not manage their financial matters is more likely to become bankrupt in the end. Management of financial structure include the fact that financial experts and the administration of the company minimize risks and maximize profits and this is the key to maintain a good flow of cash in the company and also manage their expenditure in the right manner.

This is exactly what big companies such as Amazon, Microsoft, Google, Star Bucks, McDonald's, KFC, Apple, etc are doing and I think this is why they have survived during the pandemic, while other companies collapsed. Obviously, the management of financial skeleton also involve less expenditure of the cost of the products manufactured by the company and a better ratio of sales. These were some of my ideas regarding how a company could improve its financial architecture. So what tips and suggestion could you give so that a company might improve or maintain its finances?

 

[Deleted member 28127]

The company could revise its history of trading during past years and ameliorate its strategy of work by avoiding any not profitable investment this is one method.

 

[Mellorando]

An important part of your business plan should be to improve the financial position of your business.

1. Get advice from a professional
If you haven't already, talk to an accountant or business adviser about your finances. They may be able to help you find other ways to improve your cash flow. Or they may suggest options for getting funding internally.

2. Recover outstanding debt
Chase up as many outstanding payments as you can. If you don't have the time, consider using a reputable debt collection agency. Always have a condition of sale agreement before you make a sale. This gives the buyer your terms and conditions, including: how long they have to pay the debt, any percentages you’ll apply to overdue payments.

3. Reduce or rearrange expenses
Work out which of your expenses you could reduce or rearrange. You might be able to: arrange a deferred or periodic payment plan for larger expenses
switch insurance companies, banks or suppliers to get a better deal
change how much stock you buy and buy when you have higher cash flow
switch to cheaper options for consumables like energy.

4. Sell assets
Selling unwanted assets can be a good way to get some cash and reduce your storage costs. Consider leasing your main assets. This helps to spread the cost over a longer period. Consider registering a security interest - external site on the Personal Property Securities Register (PPSR) if you’re: selling on terms, such as retention of title
leasing out valuable goods.
Registering a security interest can help you recover the debt if a buyer doesn’t pay or becomes insolvent.

5. Offer markdowns or increase prices
Apply markdowns to full-price products or services to: attract sales
move surplus stock or discontinued products.Increasing your prices is an option if your business faces rising costs.
Whether you offer markdowns or increase prices, make sure you comply with pricing legislation.

 

[Sollomun]

If you are trying to simplify the process of budgeting, management data processing, and prepare for the automation of processes

 

[Yusra3]

Companies can strengthen their financial structure in several ways: decrease in debt as the business becomes more and more profitable and improves the cash flow, negotiate an upgraded debt deal for the same amount on better terms, increase equity funding by means of subscriptions or equity sale, diversify the existing revenue streams, adhere to strict budgeting and monitoring of all costs, manage accounts receivable and assets efficiently, and investigate strategic partnerships or restructuring activities which can lead to mutual benefits. Tracking of the key financial metrics and ratio on a regular basis ensures that these are surveyed to gauge the weak points needed to resolve these through means that are reliable and sustainable.