5 Ways to Improve Cash Flow
If you’re looking to improve cash flow there are lots of steps you can take to keep your business in the green. There are ways to invest wisely and to make sure that your business has access to the cash it needs.
Understanding and implementing good accounting practices when you’re trying to run a small business can be tough, but Thom Bookkeeping wants to help. If you’re interested in our service, we want to do the best we can for you. We’re happy to offer a promo code. Use “bmstrial” and you’ll get one month of free service when you sign up.
You might be trying to get started with a new business venture and aren’t sure how to keep your venture cash-rich. If so, here are a few tips to get you started.
Invoice Promptly & Follow Up
One of the best things you can do for your business is to invoice your customers promptly. If you have to follow up for payment, it’s within your right to do so. You have to think about your business and your cash flow.
Make sure that repeat customers pay their invoices in a timely manner. New clients and customers should also know that you expect prompt payment for services and goods.
Consider Investments Judiciously
When starting a new business it can be really tempting to buy all the things on your wish list. One way you can keep your cash flow steady is to lease or loan where it makes sense. You might need specialized equipment, but if you spend all your cash on tools you’ll soon be faced with a cash flow problem.
Audit Inventory and Offerings
Taking risks is part of owning a business, but weigh any changes you make to your offerings carefully. If you have a restaurant, make sure that any menu changes are sustainable financially and are desirable to your regulars. You might have merchandise in your storefront and weigh out the pros and cons of your stock volume and diversity. Spending all your cash making changes to your businesses may incur risk of not having enough to meet petty cash needs.
If something on your menu, your shelves, or your catalog isn’t selling, be ready to edit that item out of your lineup. Make sure that everything you offer serves your clients and customers in some way.
Send Out Coupons
A great way to get eyeballs on your store, restaurant, or business is to send out promotions and freebies if possible. These deals don’t have to be major markdowns. They can be a small amount to get customers in the door. If you can offer an incentive with a purchase, even better. Everyone loves getting something for free. Those small sales can help your cash flow and your business.
Offer Incentives for Paying Cash
One way to get cash payments in your door is to make it an incentive! Offer a small percentage off the purchase for cash and your customers will be more likely to bring cash with them every time they visit. They might also tell their friends about your cash incentives.
If you’re still a little mystified as to the in’s and out’s of cash flow or bookkeeping in general, our team would love to help you. Bring your accounting and bookkeeping needs to Thom Bookkeeping. We’re excited to help you with your small business adventure.by : thombookkeeping