Cash flow is one of the factors in a business that gets overlooked the most, but it also happens to be one of the most important factors in a business. Cash flow maintenance is more than knowing how much money is being earned and spent, and it does not matter how close your business is to true profitability if you have clients who are slow to pay. Enhancing your cash flow is all about enhancing your accounting and bettering the business you are in. Here are a few tips to help you accomplish better cash flow and business practices.
Technology is Your Friend: Really.
To grow cash flow and business, you must start utilizing modern technology. It’s true, the teenagers of the world really do have a leg up and it’s time to catch up with them. There are countless systems that allow you to submit invoices to clients electronically, but also allow clients to pay online. Finding an online software is imperative for tracking money that is still “in play” and setting up automatic reminders for those clients that always seem to miss due dates. Having an online cash flow management system will keep track of invoices and ensure that you are paid for the hard work you do.
Our firm utilizes Bill.com and are very satisfied with all of the features offered. If you would like to start working with Bill.com, please reach out to us and we will assist you in getting set up and understanding the processes.
Use Your Credit Cards to Your Benefit.
Use your company credit card to purchases where you would usually use a check. Using the company credit card will give you some extra time to pay off the card each month in full. This allows for more breathing room because the cash payment does not have to be paid immediately like you would with the net 15 or net 30 that you would be dealing with for check-based payments.
Organization: It’s Not Just for Type-A Personalities.
This point might possibly be the most important tip of all because it is imperative to have a handle on what is going on in the business, especially the financial part of it. If everything is a disorganized mess, it will be difficult for even you to figure out what needs to be done, let alone anyone else. You must organize your clients into groups based on when they need to pay, prioritize everyone who must be paid first (i.e. government, payroll, and vendors), and next add those who can be paid later. In a perfect world, everyone would be paid at the same time, but if that isn’t possible it is vastly important that you prioritize based on need when you are the one paying others.
Professional Help ISN’T a Bad Thing.
Money is many different things for many different people, but it can almost always be agreed that money is 1) confusing, 2) hard to keep track of and 3) a sensitive subject for many. Despite all of these factors, the most important thing you must do to keep a healthy cash flow and healthy business is to ask for help from a trained professional. Surely it is a good thing that there are people out there who are experts in their field; imagine all of us trying to be experts at everything. You are an expert at your own trade, but you can’t expect yourself to be an expert at our trade. If you are beginning to feel overwhelmed with all of the tasks you are taking on, it is in your own best interest to find someone who can give you a much needed helping hand…hint: we’re right here. Our firm is made up of accounting experts who not only have experience with cash flow, but we also understand your niche and know how a business like yours should perform. We have worked with construction companies, medical companies and everything in between; big or small.
If after reading this you are realizing that despite doing your best, you just can’t do it all, rest assured. Not only are we here for you, but we want to be here for you. Let’s minimize grey hairs. Contact us today to find out more about our services that will make your life easier and improve your bottom line.