Maintaining a cash flow healthy is important for all small businesses especially when it comes to maintaining the financial statements, regardless of sector or type of business. If you have problems with cash flow to the point of losing the payment period of their bills or having to borrow money to make purchases, then you are losing money or, at least, unbalancing your budget. Improving your cash flow will help you save money and have a much more prosperous business.
But how do you improve cash flow to have more cash available? Here are some ideas and strategies that will help you improve the day-to-day flow of money in your business to have cash available when you need it. Business Study Notes is all about the business education, and business tips and tricks four the new entrepreneurs and as well as for business students.
Do not lose control of your Finances
Keep the accounts up to date, and conscientiously track the incoming money, the money that comes out and what you have to collect and pay. Record all data regularly.
Send your invoices on time
If you want to cash in time to have cash to make your payments, you should send the bills to your customers on time. Do not delay invoicing and be constant regarding the time of the month or week to send your invoices. If your customers know when to send their invoices, it will be easier for them to have the payment planned.
Create a Pending Payment Account Process
You should carefully monitor payments, and always keep the outstanding payments, to claim what is owed in a reasonable time.
Cut unnecessary expenses
Check your business expenses and eliminate those that are unnecessary, or reduce them. Many of these expenses are small individually, but they represent a significant amount that directly affects your cash flow.
Offer your Customers Multiple forms of Payment
Accept alternative forms of payment cash payment to keep your customers owe money and let him put in the awkward engagement “and will pay” when there is some confidence with them. At present, there are many options, from the card (credit or debit), online payments (PayPal, Skill, etc.), direct debit, etc.
It Covers the Charges in full or in part
If you receive an order that is going to cost you money or time, ask in advance the total or a part to secure liquidity. If it is monthly services or benefits, cover them at the beginning of the month, and not at the end of the month. If you do not charge, at least you will not have spent time and / or money on it, time and money you will have available for other things.
Control and Limit Inventory
If your business has inventory, you must conduct internal accounting for the products you have in stock on a regular basis. Try to mobilize so that does not become obsolete or lower of price, and manage it effectively. If you continue to buy without selling what you have, you will lose liquidity, purchasing power and storage capacity. All of this will affect your sales and profits.