As a small business owner, successfully managing cashflow is crucial to the smooth day-to-day running of the company. It can be frustrating waiting for outstanding invoices to come in but here are a few tips to help keep you on track.
Focus on cash-flow first and profit second.
Prioritise your payment terms and clients that settle up quickly. If your cash-flow is healthy then your profit will be too.
Set clear terms.
When exactly will payment be “overdue”? The only way to properly forecast and manage your cashflow is to agree clear payments terms with your debtors.
Invoice as soon as appropriate.
Don’t delay, make sure you are invoicing once the job is done or the item is delivered. Invoicing is something that a lof people don’t like doing but the longer you wait the longer it will take to get paid.
Make online payment an option.
More and more business is done online, even the most basic of transactions. Be sure to offer your customers a way to settle their debts from the comfort of their home.
Software can really help.
Cloud-based accounting can be a brilliant time-saver, freeing you up to focus on other things like cashflow.
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