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At KAAS we know safeguarding cash is often presented as a simple matter of cutting costs or delaying spending. That view is risky. In a volatile market, cash protection requires deliberate choices across several areas of the business, not reactive measures that weaken long term capacity. Many SMEs assume that stable revenue or a healthy bank balance is enough, yet turbulence exposes the gaps in that thinking very quickly.

A practical starting point is to tighten your visibility over daily and weekly cash movements. Many owners rely on monthly accounts, which leaves them blind to emerging pressures. A short term cash flow forecast allows you to anticipate pinch points rather than respond to them when they arrive. Forecasting does not prevent volatility, but it reduces the surprise factor and gives you the opportunity to intervene early.

Reviewing your debtor process is another way to protect liquidity. Slow paying clients often become a hidden drain, and many SMEs tolerate extended credit terms because they fear damaging the relationship. That mindset invites long term strain. Clear payment expectations, structured follow ups and incentives for early payment strengthen your position without alienating your customers. Businesses that take a firmer approach frequently find that clients adapt with little resistance.

Stock management also deserves greater scrutiny. Excess stock may feel reassuring in uncertain times, yet it ties up cash that could otherwise support operations or buffer unexpected shocks. Analysing stock turnover and identifying slow moving items helps you release cash without harming service levels. Many SMEs discover that a leaner stock profile improves both liquidity and operational efficiency.

Supplier relationships play a significant role in cash protection. Relying on a single supplier or refusing to renegotiate terms limits your flexibility. A more strategic approach involves discussing payment structures, exploring alternative suppliers and assessing whether certain costs can be smoothed over a longer period. You gain negotiating power by being proactive rather than waiting until pressure becomes visible.

Finally, reviewing your cost base is essential, but it is not as simple as cutting expenditure. Reducing costs without understanding their impact can damage revenue generating capacity. A more effective approach is to assess which costs support future income and which costs provide little measurable return. This encourages smarter allocation rather than broad reductions that weaken the business.

Cash protection is an ongoing discipline that requires attention, structure and a willingness to challenge your own assumptions. SMEs that build these habits place themselves in a stronger position to withstand volatility and seize opportunities that emerge during uncertain periods.

If you would like to discuss your business needs. Call Kildare Audit & Accountancy Services on +353 45 432313 or email reception@kaas.ie.

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