There is one things that EVERY business has in common, and that is, the need for cash (no cash, no business).
Aside from keeping the lights on, here are some more reasons to pay attention to your cashflow:
You can pay yourself more for all your hard work
You can make your cash work for you (instead of working for your cash all the time)
Paying taxes are WAY less stressful
You can make better business decision
You'll stay ahead of your competition
Even though it seems so obvious, I understand how challenging it can be to manage your cash without the right skills and tools. Sometimes there are so many moving pieces to understand when it comes to cash, that it can feel confusing or challenging to manage. The good news is that there are simple tools and habits you can incorporate in your business to demystify the ins and outs of your bank balance.
So, to help you out. I have compiled a list of 10 strategies to improve your cashflow today.
Set some time aside this month (yes, now is the time) and implement these in your business.
Ensure your bookkeeping is up to date and your banks are reconciled every month.
Set appropriate payment terms on your invoices (if you have payroll every month, don't set your invoices to 30 days)
Pay attention to your invoices and ensure they are getting paid on time. Pay attention to the clients who are paying on time and the ones who are not. This can cost you in the long run. You can set automatic follow up reminders in your bookkeeping software.
Utilize your terms with your vendors (i.e. pay the invoice on the due date)
Pay your credit card when it’s due, and not sooner.
Save enough money throughout the year for your taxes. Put it in a separate account.
Optimize your inventory. If you are holding too much inventory, that is cash sitting on the shelf.
Automate as much as possible such as recurring invoices to customers, etransfer auto deposit, automatic credit card payments, pre authorized debit with vendors, etc.
Find the right capital based on your business need (i.e. an investment that will payoff over 6 months should be paid for with a 6 month loan)
Forecast your cash regularly, especially if you are at risk of running out of cash in your business.
If you still find it confusing and need support, I would love to help you with your cashflow challenges.
Drop me a line or book a discovery call with me today.