The most important thing for a businessman is to see his business making more and more revenue with time. But, the positive revenue chart is of no good if the cash flow is disturbed which means if you do not have cash in your hands, you will face trouble with managing payroll and expenses.
Cash flow counts as the most essential factor to determine the growth of your business. Whether your business will be growing next year majorly depends on how your cash flow is.
Making it simpler, profit does no good to your business without flowing cash. Now is the time to get serious about cash flow management and financial management.
Here are the ways to get a better control over cash coming in and going out of your bank account.
Go through your transactions everyday
If you’re a small business owner, daily stress about payroll and expenses must be a normal thing for you. Worrying about finances can hurt your productivity and we’re here to save you from that. A great invoice app lets you overview your payment history and outstanding payments easily at one screen.
Review your accounts receivable regularly
Accounts receivable balance is an amount to be paid by your customers against your sales. If your total sales were of $10,000 but you only received $1000, then $9000 is your AR balance.It is considered as an asset but not reviewing it regularly (it is recommended to check your AR balance at least once in a week) can halt your business growth. This incredible invoice app online lets you send automated reminders to clients with outstanding payments giving you full control of your finances.
Delaying payment follow-up for a long time can result in getting no payment at the end as a considerable number of customers just do not pay. Hence, ensuring a strong and timely follow-up is very essential.
Save money for taxes and rainy days
Not every business is seen making profits throughout the year. The case with seasonal businesses is even worse. If you own a seasonal business, it is evident that you won’t be making revenue in a few months of the year. What do you do for such days? You save!
The best strategy to keep your business stable throughout the year is to save some cash for rainy days. Having no cash when there’s no business can result in ultimate death of your business.
Needless to mention, every business has to pay a handsome amount of taxes every year and you must be saving cash for that as well. Make sure you don’t get hit with a major tax at the end of year with no sufficient cash in your hand.
This is a summary of how you can try ensuring your business doesn’t fail due to cash flow problems. Make sure to get services of an integrated payment services company to streamline your finances and accounts.