Properly managing your small business cash flow is critical to your success. Most small business failures are caused by poor cash flow — not enough cash coming in the door and too much going out. Here is practical advice on how to properly manage your small business cash flow.
Invoice and Collect Quickly
1. Send invoices right away
It is important that you get cash coming into your business as quickly as possible. When you make a sale, email an invoice out right away so that your customer can pay early.
2. Make it easy for your customers to pay
You need to have a good invoicing method that makes it easy for your customers to pay as soon as they receive the invoice. Modern software, like QuickBooks, can likely handle your needs by integrating many of your required functions.
3. Accept credit cards and other payment methods
So many businesses don’t accept alternate payment methods because they don’t have the time, not sure how to do it or believe the cost is too high. An experienced bookkeeper can do this for you and you’ll make up the small cost in a short amount of time. Set up recurring automatic payments, when appropriate.
Keep Up-to-date Records
Another way to boost cash flow is to track it closely. Using software like QuickBooks for your small business will help you get a handle on cash flow. You can review your books regularly and easily estimate the cost of any large variable expenses that you expect, like payroll.
Forecast Future Cash Flow
Do a forecast at the end of every single month that goes 3 to 6 months into the future. Creating a financial forecast is important especially for the small business owner as it helps identify potential cash flow problems early. If you can see a cash flow shortage coming, you can make the necessary changes ahead of time rather than being surprise.
Focus on what you do best
YourBizManager can help! You can start the process by sending us an e-mail to info@YourBizManager.com or by texting or calling 424-246-6006.
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About Doris Cristiano & YourBizManager
As an independent bookkeeper, Doris Cristiano has been providing flexible business services on the west-side of Los Angeles since 1997. To support business needs and growth, YourBizManager tailors its services to each unique situation and works closely with its Clients’ at their business or home office. More About Us
