One of the most common questions we get from our clients, especially those in SMEs, is that when their company’s revenue increases, their bank account balance decreases instead of increasing. This is often a sign of internal problems that urgently need to be resolved. Let’s look at the most common reasons:

• That your company is losing money, and that you’re losing more money with each unit sold. This would be the most obvious answer.
• You have a negative cash flow: That is, you collect payment from your customers later (PMC) than you pay your suppliers (PMP). This gap must be financed in your Current Assets.
• You may make new investments in fixed assets during the fiscal year. With greater revenue growth, you may need to make new investments in tangible fixed assets (machinery, installations, etc.), which you will have to pay for (or finance).
• Uncontrolled growth: You need to keep your business under control with the necessary planning and reporting to avoid incurring costs due to inefficiencies and improvisation.
• Inefficient inventory management: The higher your turnover, the more inventory you’ll typically need, which you’ll need to purchase, immobilize in your current assets, and adjust to avoid inefficiency.

The Solution:

After identifying and analyzing the root cause of the problem, we need to create internal procedures and periodic reports to ensure you have the information and control of your company. We will adapt to your company’s actual needs based on its size and complexity. It’s important that it be simple and useful for your management. Some of the work to be done would include:

• Analysis of the current economic and financial situation of your company
• Preparation of the company’s annual budget and cash flow budget
• Periodic reports: Financial, Analytical, Budgetary, Commercial,…

At Expertalia Asesores SL , we can help you solve your business’s challenges. We have extensive experience providing these services to companies in various sectors. We provide the following services:

• Tax, labor, and accounting advice.
• Outsourcing of the Administration Department and Financial Director (BPO)

Visit our website and you’ll receive an automatic estimate using our calculator : https://expertaliaasesores.es/