When you run a business, its cash flow is an important part of your success. Having enough working capital can mean the difference between running a profitable business and running one that fails to turn a profit. The good news is that there are many ways that you can increase your business’s cash flow.
Update Cash Flow Forecasts Accordinglybed
Looking at records of your previous sales, you can create a forecast showing when your business’s profit is likely to be rising and when it’s likely to be falling. You do this by weighing your business expenses against the amount of cash you expect to make in a certain period of time. This gives you a good idea of when your business will need an influx of cash. For help in creating and using a forecast, turn to software like QuickBooks and Xero.
Change the Way You Handle Invoices
By compiling and sending out electronic invoices to your customers/clients, you’ll keep your business running smoothly and keep the cash flow as steady as possible. To save time creating invoices that make it easy for the recipients to pay, you can use an app called Invoice2Go.
Have Clear Payment Terms
No matter how you send out your invoices, it’s important to make sure that the payment terms are stated as clearly as possible. You’ll also want to have a solid plan for how to approach recipients that don’t pay their invoice on time.
Eliminate Paper Checks as a Payment Option
In today’s world, there is no need to write a paper check in order to pay an invoice. Encourage your customers/clients to choose other forms of payment. This means paying their invoices with a debit or credit card or offering the option of a bank-to-bank transfer. This lets customers pay out of their checking account without the need for an actual check.
Contact Rushview Commercial Funding for more tips on how to improve your business’s cash flow. They will help guide you in the right direction and address any questions or concerns that you may have about the subject.