With March’s financial year-end rapidly approaching for South African businesses, there’s a looming challenge: managing cash flow. As tax obligations, supplier payments, and payroll deadlines draw near, being unprepared could lead to a cash flow squeeze. The silver lining? You still have time to take control.
Step 1: Conduct a Cash Flow Check-up
To address any issues, you first need a clear picture of your current situation. Consider these questions:
✅ Do I have sufficient cash to cover March expenses?
✅ Are there any outstanding invoices that need to be collected?
✅ Have I saved enough for upcoming tax payments?
Review your financial reports and analyze last year’s year-end trends. Identify previous pitfalls and strategize accordingly.
Step 2: Streamline Your Finances
March is not the time for excessive spending. Delay non-essential expenses if possible.
🔹 Secure better terms with suppliers – Request extended payment terms to ease cash flow.
🔹 Evaluate your expenditures – Eliminate unnecessary subscriptions or services that lack ROI. 🔹 Defer major purchases – Postpone non-essential buys to Q2.
Step 3: Get Ready for Tax and Payroll Responsibilities
It’s crucial to be prepared for your financial obligations to SARS, regardless of cash flow challenges. Be sure to:
📝 Calculate your provisional tax due in February.
💰 Reserve sufficient funds for PAYE, VAT, and other tax liabilities.
📅 Prepare to cover March salary payments.
Key Insight: Address Cash Flow Concerns Before March
Successful businesses are those that plan ahead. Take charge of your cash flow now to avoid future issues.
🚀 Interested in learning more? Schedule a consultation with OCFO.
