More than anything, as a small-business owner, you need to monitor and manage your business’s cash flow. Whether monthly or weekly, it’s crucial to stay on top of things.
Cash Flow numbers indicate how much money is coming in and how much is going out of your business. Making more than you’re spending? That’s good. Is cash flow regularly rimming into the red zone? Not good.
A common and most damaging cash flow problem is struggling with keeping cash flow positive over a given month. Not only do you need to account for your various expenses such as overhead costs, payroll, investment in new equipment or technology, but it’s crucial to balance your cash in and cash out to stay ahead of the curve.
Suppose you’ve been less than diligent about monitoring your business’s money. In that case, our 7 tips can help you boost your business’s cash flow to assist you in paying expenses, investing in new opportunities, and growing your business.
1. Regular Cash Flow Monitoring
The easiest way to monitor cash flow is by ditching the excel spreadsheets and upgrading to an online accounting system such as Quickbooks. The software is developed to make things a lot more simple – reconcile your accounts, generate reports, and more. What’s more, all your information is safely saved on Cloud, making it easy to access data and stay on top of your cash flow wherever you are.
2. Cut Costs
Cut costs as much as possible. Focus on recurring monthly, quarterly, or annual expenses. Can you cut back on utilities, rent, or payroll? Are you spending money on subscriptions or services you’re not using? Can you renegotiate the terms of outstanding loans or leases? These are all ways you can cut costs to help with cash flow.
3. Lease Equipment
By leasing furniture, vehicles, computers, and other business equipment, not only will you save on splurging all your cash flow, but too will have access to the latest tech and features. What’s more, even though you do not own those assets, you can expense the lease costs on your business taxes.
4. Stay On Top of Invoicing
Send invoices when the work’s completed or products are delivered to the person in charge of payments. Design straightforward and easy-to-read invoices, with key areas like due date, the amount owed, where to send payment, and methods highlighted. Speed things up further by emailing invoices instead of mailing them.
5. Request Deposits or Partial Payments
Request a percentage of the final amount upfront before starting the job. You can also charge at different stages of completion to ensure you generate enough cash to finance the materials and pay the workers needed for the job.
6. Pay Bills Strategically
Extend payables as long as possible and spread out your payments. Don’t pay all your business bills simultaneously, as this will exhaust your cash and potentially jeopardize your relationships with suppliers if you are unable to pay. Sort bills according to priority, and stagger payment dates to pay the most important bills first. Check to see if you qualify for discounts for paying any bills early.
7. Get Short-Term Business Financing
A fast, simple, and secure way to guarantee cash flow is applying for financing at a non-bank lender like ByzFunder. Short-term funding or merchant cash advance provides a cushion for lean times. Approval takes less than 24-hours, ensuring your business is fully operational and ready to grow! Staying on top of your cash flow is key to your business success. Don’t let a few cash flow missteps put you in a money crunch. All it takes are a few smart moves to keep your company on track.
What’s more, you can combine multiple cash flow approaches as mentioned above. By managing cash flow successfully, your company will survive and thrive even in times of financial instability.
To get cash flow financing today, apply with us now.