The hardest part of any business is when it runs out of money. The simple act of balancing business income against it’s expenses is cash flow management. The turn up time between you get cash from customers and paying the expenses is often which causes unpredictable stages in business. Here are few tips to manage your cash flow positively.
Auditing Your Credit Policies and Histories of Clients
Refusing credit to clients having history of slow payments and welcoming them for cash payments. Credit offered to clients and managing them plays a key role in cash flow management.
Boosting Receivables
Posting invoices on time, Rigorous follow-ups stating the due dates and sending overdue notices will help to boost receivables and enhance cash flow management.
Uncovering New Sale Opportunities
Customer acquisition is essential to a growing business, increasing sales may increase your accounts receivables and not actual cash if these sales are on credit. So uncover new sale opportunities and encourage them to pay by cash rather than credit.
Using Cash Flow Management Tools
Keeping track of cash flow by analyzing the reports and forecasting the hurdles ahead in the business with cash flow management tools can help your business grow. This helps you spot trends, prepare for the future, and tackle any problems with your cash flow.
Positive cash flow and right cash flow management is the overall goal to tackle any problems that may arise in business.