How Can a Business Improve its Cashflow

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How Can a Business Improve its Cashflow
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• Positive cash flow (and plenty of it!) is what
  businesses strive for. It eases the financial
  pressure and offers up opportunities for growth,
  research, development and reward.
• Wouldnt that be nice?
• Yet it seems to be unattainable for so many. It
  is a fast-moving world. Consumers are picky with
  high expectations and with the advent of the
  internet and social media, they are exposed to
  more purchasing and transaction opportunities
  than ever before.

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• Competition is fierce.
• The global financial downturn many years ago
  impacted many businesses. A survey conducted by
  the Reserve Bank of Australia found that business
  owners perceptions of cash flow challenges
  married with the economic climate.
• All sounds a bit gloomy doesnt it? But it
  doesnt have to be. Increasing your cash flow
  comes down to simple and effective financial and
  operating procedures.

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• 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!
• Now THAT is something that is entirely avoidable
  with simple, operational processes that you must
  make part of your business culture and daily
  goals.Here are three simple ways you can improve
  your business cash flow

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• Invoice at the end of every job
• This is an all too common mistake. Dont wait for
  the end of the week or worse (!) the end of the
  month to pump out all your invoices. The sooner
  an invoice is in a debtors hand the sooner you
  can chase them for payment. I was working with a
  photographer the other day who had an invoicing
  app on her phone. She invoiced another client for
  work that she had done that morning right there
  and then. Proactive AND punctual, thats what you
  want to be with your invoicing. Check out our
  blog on best cashflow apps for your business.

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• Use accounting software that tracks invoicing
  activity
• Traditional methods of accounting, especially for
  small business and start-ups, often mean creating
  an invoice in a word document and emailing it to
  a client. Now if you havent transferred a record
  of that activity to say another spreadsheet, you
  might lose track of who you have sent an invoice
  to and when.

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• Cloud accounting software takes this issue away.
  For example, Xeros online bookkeeping software
  can see who sent the invoice and when it was
  opened. It can also automatically send reminders
  to your debtor saving you time and getting that
  money in your bank account where it rightfully
  belongs, sooner! Ever had someone say to you, Oh
  I didnt receive that email. Not anymore. Youll
  identify the clients who have an affinity for
  tall tales.

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• Modernise your payment options
• Its 2019 so if you arent working with online
  accounting software and using payment options
  that make it EASY for clients to pay you, you
  need to get with the technological program. With
  so many options available such as Electronic
  Funds Transfer, PayPal, eWay and Secure Pay,
  there really should be no excuse for accepting
  The cheque is in the mail as a justification
  for why an invoice hasnt been paid. Traditional
  methods of payment such as cheques impact your
  cash flow negatively. Make it easy for clients to
  pay you and watch your bank balance grow. Here
  are some invoicing ways to increase your to
  increase your cashflow.

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• Being proactive about cash flow is the key to
  keeping it positive, from a cash perspective and
  also a management perspective. Putting your head
  in the sand and neglecting the books will not
  work.
• Use technology for good, not evil and get the
  money you deserve. You and your team have worked
  hard for it. It belongs with you.
• For more tips on how to improve your cashflow
  check out our post on manging cashflows for small
  business. If you are looking for professionals to
  help you take control of the financial health of
  your business speak with one of our team members
  today.