Savvy business owners are constantly monitoring their cash flow. They know that an unexpected bill or a delayed payment can stop production, or worse. Monitoring how much cash is flowing in and flowing out is the only way to be certain that you will have enough cash on hand to meet your obligations.
These tips will help you better monitor and manage your cash flow.
- Simplify Access. Use a cloud based accounting software system to provide easy access to your accounts and reports.
- Cut Costs. Go over all your expenses. Do you have subscriptions you are no longer using? Make sure the money your company spends is spent to make more money.
- Have a Sale. If you have equipment you no longer use or material that you won’t need for another job sell it.
- Get financing before you need it. Having a line of credit is a great way to avoid cash flow problems.
- Lease don’t Buy. By leasing office equipment and machinery, you can have the latest model and avoid tying up cash.
- Keep a Tight Grip on Invoicing. Be certain that invoices are sent when your product or service is delivered. Email your invoice to everyone involved in approving and paying your invoice.
- Accept Mobile Payment. Have a payment app that allows your customer to pay online.
- Offer a Discount for Quick Payment. If your running short of cash, you can offer your customer a discount for paying quickly.
- Get a Deposit. For large contracts it can be standard practice to get a deposit from the customer before the job is started, and then receive the remaining payments when certain milestones are reached.
- Use Receivable Factoring to Speed up Your Cash Flow. Even after carefully optimizing their cash flow, many business owners still come up short. Almost all successful startups will outgrow their startup funding and need additional money to continue growing. Receivable factoring can be a perfect solution for companies that have taken on larger, slower paying customers. Factoring companies base their credit decision on the credit strength of your customers, not your company. This gives business owners access to the cash they need to take on larger and more profitable jobs.
Jack Stieber email@example.com 972-404-4726
Brad Gurney firstname.lastname@example.org 800-297-6652
Dakota Stieber email@example.com 512-339-5112