The at the risk of detrimental relationships

The cash budget is a process of predicting cash inflows and manages cash outflows in a specific period time. Purpose of this is to make sure there is allows the business to pay the daily operating expenses. So that, it had require to manage activities efficiently. For instance, financing, cash receipts and cash disbursements.
There are some ways to improve the Xpress Sdn Bhd’s cash flow. Firstly, delay payments or pay less to suppliers. This is a dangerous and also widely used in every business process. Company take longer time to make payment, but can reduce cash outflows as a result. The advantages is company is at the risk of detrimental relationships with the supplier and lose trust from them. Conversely, if the company have maintain good communication and partnership with supplier, company can offer suppliers early payments if willing to give company a discount in return.
Next, Xpress Sdn Bhd was suggested an important part of way to improve cash flow which is cutting stocks. They reduce the amount of cash outflows by buying or holding the raw materials for resale. This would work through order less stock from the suppliers and offering discounts on stocks held to encourage the customer to buy it. This could be facilitate business operations and transactions with the amount of money needed.
Lastly, cut down or delay the expansion project plans. Many big cash outflows occur especially when company is expanding such as buying a new equipment, offices or adding a new production line. By delaying these, cash can be hold by in the short- term period time.