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A Fresh Start: Keeping Your Employees Healthy and More Productive
A tidy and sanitary office is crucial for quality work. Distraction lowers productivity, even on a subconscious level. Studies have also shown that business offices are a breeding ground for germs causing illness, which takes employees away from work, lowering productivity and work quality.
A clean desk has shown to increase productivity. Stacks of papers and files and other items cause clutter, which also clutters your mind. It is recommended that after a task is completed, it is filed in the proper place. How many times have you thought, “where is that file, or paper”? It is estimated that workers spend over 4 hours a week looking for misplaced items and correcting mistakes. If someone else needs the file, it will be easily found if it is returned to the proper place. Productivity goes down and anxiety goes up when you are not able to locate what you need to complete the next task. Filing things and putting supplies and other items away will create a more open workspace which will result in less mistakes being made. Mistakes lessen productivity requiring a task to be done over. A clean work area, uncluttered the mind as well and also makes things easily accessible.
The bottom line is that a healthy and productive workplace is not just keeping things in their place and immediately replacing files and other important papers. it is important to keep things like your computer, keyboard and other equipment clean and free of clutter. 10 sticky notes on your computer is cluttered are likely to fall to the floor. Having too many personal items on your desk is also detrimental. Put one personal item and find a shelf for other items you feel you need in your office. Employers should also require cleaning of electronic equipment, not only for health reasons, but for the maintenance and longevity of the equipment. A printer full of dust is going to break down. A keyboard with grime and bacteria will also stop working and will grow bacteria causing illness. You touch multiple files and papers, pens and other things in an office. Imagine the germs lurking from everyone that has touched these things. Keep hand sanitizer in the office as well. Healthy and organized employees are always more productive.
A sanitary and clear workspace makes for a clear mind and healthy body that can focus on tasks at hand. If you have to go through stacks of paper looking for that one thing you cannot find, you will become anxious and frustrated, likely ending in a mistake. And, if there is bacteria on your desk and computer and throughout the office, illness is eminent, which will impede productivity.
Take some time before the new year and get everyone to spend some time cleaning and organizing the office. It will make for a fresh, productive start to the new year.
Spend some time at the end of the year discussing this with your employees and involve them in cleaning the office. Cleaning companies do basics and will not make your office sanitary. It will make for a fresh, more productive office and healthy employees who are at work and able to do their job. Start the new year off right!
Improve Your Business Cash Flow
Did you know that even if your income statement shows that your business is making a profit, your business can still not succeed? Just because you are profitable on paper, you still might not have a positive business cash flow. And, without cash, your business simply runs out of money and has to shut down. Cash flow problems are one of the biggest reasons small businesses fail.
What is Business Cash Flow?
The definition of business cash flow is pretty simple. It’s the movement of cash flowing in and out of your business. Cash comes in to your business when clients or customers pay for your products and services. Cash goes out when your business pays for expenses such as inventory and rent. When cash flow in is greater than cash flow out, you have a positive cash flow. When more cash is going out of the business than is coming in, the cash flow is negative.
There are some times when a business can expect their cash flow to be negative. It’s important to plan for those times by keeping more cash in reserves. If you are just starting up, you may have many one-time expenses to get your business off the ground—such as equipment and advertising—before you get any paying customers. Also, if you are a seasonal business and experience fluctuations in orders based on the time of year, it is important to manage your business cash flow wisely.
How to Manage Business Cash Flow
Keeping track of your business cash flow will help you see where any issues may be. A cash flow statement will compare accounts payable to accounts receivable. It will also help answer questions such as:
• How much is your company owed by clients?
• How many invoices are still overdue?
• How long does it take to get paid by clients after paying suppliers?
If more items are payable than receivable, you may have a potential cash flow problem in your future. The sooner you fix a cash flow issue, the better off your business will be. If you avoid the issue, you risk getting further and further behind, resulting in the possible loss of your business.
How can you make changes to move business cash flow back into the positive? Here are some ideas:
• Short-term financing can help bridge a short-term business cash flow gap
• Long-term loans help spread large asset costs over time
• Invoice factoring
• Sell assets no longer helping with profits, such as older equipment, to liquidate cash
• Reduce business expenses
• Find strategies to increase sales
• Implement procedures for receivables to come in faster, such as twice monthly invoicing, shorter payment terms, deposits on large orders, and more
• Wait to pay bills as long as possible without consequences of late fees and spoiled relationships
Financial advisors often recommend keeping 3-6 months of expenses in cash reserves for emergencies and unforeseeable situations. This advice carries over to business accounts, as well. Having cash in your back pocket for a rainy day may save your business in times of struggle.
Small business owners must learn and maintain smart cash flow management in order to succeed and stay afloat. By applying some simple cash management strategies, you can keep your business thriving. Both your business outlook—and your business cash flow—will be positive.
Factoring: A Business Cash Flow Solution
If business cash flow problems are creating concerns for your small business, invoice factoring may be a solution. Put your trust in the best and call American Receivable to learn how our flexible factoring solutions help businesses like yours.
American Receivable, with offices in Dallas and Austin, is ranked No. 1 nationally among small-business factoring companies. Since 1979, we have provided small businesses with the financial resources and accounts receivable management strategies they need to grow, increase inventory, make payroll on time, and effectively compete in the marketplace. Simply put, we are your source for factoring and accounts receivable management.
Our clients are our priority. At American Receivable, we pride ourselves on our exceptional customer service and dedicated and tenured account managers. We can provide funding within as little as 24 hours in some cases. The success of our clients is the success of American Receivable. Call us for a FREE quote today at 1-800-297-6652, or complete the quick quote form below.
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Thanksgiving Through the Years
The first Thanksgiving in Plymouth Colony which is now Massachusetts was in 1621. The last Thursday in November was declared a national day of thanksgiving by Abraham Lincoln 200 years later. In 1941 Congress made Thanksgiving an official national holiday. A day of “thanks” and “giving”.
Thanksgiving has traditionally been a day of family and friends getting together for a meal and fellowship. A day to stop and reflect on all of the blessings we share. In 1876, football was introduced as a tradition. Yale and Princeton played the first American Football game on Thanksgiving day. People were off from work and were able to go see football. It was not until 1934 that the first football game was broadcast. The Detroit Lions played the Chicago Bears at University of Detroit Stadium and a new tradition, which later became a television broadcast.
Thanksgiving has changed over the years. While many of the original traditions remain, new ones were born. Black Friday became a big tradition for many families. Getting up at early hours to go Christmas shopping for the best deals. The idea came from retailers showing losses seeing a surge in sales on discounted merchandise on Black Friday, often bringing their revenues back in the black. Retailers started opening early on Black Friday and advertising big sales. In the last decade, lit has become a Thanksgiving evening tradition with stores opening on Thanksgiving evening and staying open 24 hours. People have made their own traditions as well. Many take vacations and skip the big meal and the shopping, although most still incorporate a game of football in the plans.
Thanksgiving is celebrated in many ways. However you celebrate, remember to give “thanks” and “give” to those in need.
American Receivable is thankful for our customers and our relationships in the financial industry. We wish everyone a safe and happy holiday.
In the words of the late Erma Bombeck:
“It takes 18 hours to prepare a Thanksgiving meal,
It takes 12 minutes to eat it. Half-times are 12 minutes.
This is not a coincidence.”
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The Cash Flow Struggle
Cash flow is essential to any growing business. When cash flow slows down, it can cause the business to drop revenues or completely fail. In order to keep from failing, business owners have to look at their business practices and figure out what is causing the cash deficit. There are many possible reasons for the shortage of cash flow as well as simple ways to eliminate the problem.
New streams of revenue may be a possible answer. Can you diversify your business to include other services that would bring in regular cash flow? Adding the right services to your current business can help fill in the cash flow gaps.
Don’t overestimate when forecasting cash flow. Bee conservative and consider worst-case scenarios when forecasting for the future. Planning ahead will help your business stay afloat and reduce risks in the event of an unexpected cash flow shortage. Consider prior years when forecasting your upcoming year. Late payments from customers or large unexpected business expenses can lead a business into a cash flow crisis.
Collecting from customers can be a constant struggle. Look at your current collection practices and look for ways to make them more efficient and effective. Implementing software that can flag overdue accounts and send reminders to customers should be utilized. Follow-up phone calls or emails may be required, however, the software will give you the assurance that reminders are being sent and your accounting division is aware of any problem accounts.
Evaluate the time management and resources of your employees. Are they using time effectively? Are your employees using resources too quickly that could be used more conservatively? Are they spending too much time in one area and too little time on something more crucial like collections or verifications? Efficiency in your business will be a helpful tool for cash flow management.
Business expenses and operating costs. Know how much revenue is being spent on office supplies and other expenses. Businesses often order supplies that are not really essential for daily operations that could be purchased on an as-needed basis. Look at your supplies and order only what is necessary. A smart business owner will always be on top of revenue coming in and going out.
Cash flow is the most important asset for a business. Make sure your business is utilizing your cash effectively for growth and longevity.