The secret cash that is hidden in your business

The secret cash that is hidden in your business The secret cash that is hidden in your business 2018 saw that 70% of UK start-ups scaled up quickly and 29% ran out of cash within their first year.  Late payment of invoices, slow financial turnover, and unforeseen outgoings can have a detrimental effect on a business. However, there are many ways in which to uncover monies within a business and locate cash previously not recognized.  Here, we worked with the team at  F-Initiatives  to present 5 ways to obtain secret cash in your business.RD Tax ReliefDepending on your business’s eligibility, RD tax relief can award you with tax credits, a reduction in corporation tax and even cash back to the company’s accounts.Follow Ladders on Flipboard!Follow Ladders’ magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and more!Manufacturers who have created a new and innovative product can claim for a share of the research and development that went into creation process.  If your business does not fall into the manufacturing realm you can still subm it an RD tax claim.If your business has created a process that is prescriptive to the business and aids in the smooth running of operations, then eligibility will also be considered.Lease Potential Big PurchasesEven small startups require products that are considered big purchases.  It is worth remembering that buying products are final and there is no flexibility once they are in your business’ possession.Leasing potential purchases such as cars provides ease when submitting your annual tax claim.  It also demolishes the burden rapidly losing its value as time goes on.  However, always risk asses the decision with the terms and conditions presented within the lease.  If you know that you will exceed mileage conditions etc, then outright purchases can serve as the better option.Outsource Tasks to the ExpertsSporadic tasks that require an expert is inevitable.  However, many companies cannot afford to employ a full time or part time member of staff.  Directors can also be fearful t hat if the tasks were made into a specific job role, the work load may not align with the financial return.Outsourcing tasks to experts within their field allows you to only outlay costs as and when you need specific tasks completed. Not only is outsourcing cost effective but frees up time for full time members of staff.   Budgeting quarterly for such tasks allows you to avoid any unsuspected financial outgoings.An ongoing conversationAn agreement with suppliers doesn’t have to be written in ink.  If you hit financial strain, always instigate a renegotiation.  Renegotiating rates initially agreed is a great way to ‘free up’ some cash.Always request a monthly report from suppliers so that you are working with full transparency.  Monthly reporting also presents the opportunity for you to asses if your payment aligns with the work being done and serves as an asset in negotiation.UnsubscribeSome subscriptions are very low in cost.  So much so that you may not even notice them leav ing your company account.  Ensure that you thoroughly go through your company’s bank statements every month and cancel any subscriptions that you may not be using.  This article first appeared on Coffee Break.  You might also enjoy… New neuroscience reveals 4 rituals that will make you happy Strangers know your social class in the first seven words you say, study finds 10 lessons from Benjamin Franklin’s daily schedule that will double your productivity The worst mistakes you can make in an interview, according to 12 CEOs 10 habits of mentally strong people