No matter how big or small your business is, managing your cash flow can be TOUGH. But don’t worry, we have the tricks of the trade to make sure you stay on track! Are you currently doing these things to manage your cash flow?
Consider your Cash flow
Prepare cash flow projections. Do this for next year, for each quarter and if you’re on shaky ground, also project for next week. A good cash flow projection is an “educated guess” on several factors, including your customers’ payment histories and your own thoroughness at identifying upcoming expenditures.
Take full advantage of payment terms — if a payment is due in 30 days, that’s when you should pay it
Transfer funds electronically to make payments on the last day they are due (provided they are received immediately, otherwise allow time to make sure they’re in as close to the due date as possible).
Don’t always focus on the lowest price when choosing suppliers — sometimes more flexible payment terms can improve your cash flow more than a “bargain” price.
Incentivise the things you like (early payments!) and penalise the things you don’t (you guessed it, late payments)
Identify and avoid slow-paying customers. Cash on Delivery (COD) is a great payment option for customers who take a little longer
Send your invoices straight away, don’t delay
Start today. Implementing just a few, or all of these things will have you on your way to improving your cash flow!