It is important that you can differentiate between what your profits are, and what your cash flow is… Cashflow is the life-blood of your business; it’s what allows you to pay off your bills and staff and keep the business afloat!
Here are 5 quick and easy ways that you can improve your cash flow today!
1. Make it painless by invoicing immediately!
The sooner the invoice is out the better. Be proactive and punctual with your invoicing. If you wait too long, the business that owes you may not have the amount within their budget anymore, or worse, they’ll forget the invoice altogether!
2. Automate your process so that everything is available in one system!
Automate your invoicing process so that you can auto-generate any recurring invoices, resulting in faster payments which equals better cash flow! This complimented by the online-based payment services available such as E-way and Ezidebit will be your ultimate weapon!
3. Create clear payment rules in your terms and conditions
Be up-front and clear about your payment terms to avoid a debate with your customer later. Be sure to review and update as appropriate!
4. Understand the pain points of your customer
Some customers may not be as timely as others in their payment. By identifying what is a pain point in their life, you can address the issue and offer them an alternative you will get a much better response from them!
5. Know when to walk away
Don’t feel bad - if your customer is a repeat offender, do not waste any-more time or effort on them… Cut them loose! You can spend that time on someone that will respect your terms!
A survey conducted by accounting software firm CCH and global information service group Wolters Kluwer found that 31% of small business fail due to insufficient time management of the books! Avoid being part of this percentage by perfecting your invoicing process and everything else will fall into place…
Our team is ready to assist you with guidance and direction around the best fit for your business! Take advantage of our complimentary consultation and book in today to see how we can help!