5 Quick and Easy Ways To Improve Your Cash Flow
Cash flow management is essential for every business.
It doesn’t need to teeter on the edge every month. Here are 5 easy but fundamental fixes.
- Prepare cash flow budgets / forecasts on a regular basis. You’d be surprised how many businesses don’t. Then fire-fight when in a sticky position. I’d recommend preparing weekly, monthly and yearly forecasts but this should be tweaked to your business needs.
- Review your cash flow data using accurate, real-time information. I’d recommend Xero. You’ll be able to send bank feeds directly to Xero and reconcile from there. Automation > Efficiency > Improved Management Data
- Prepare and issue invoices straight away. Get the basics right. Include the correct backup documentation. I can’t emphasise how important this one is.
- Speak to your customers and suppliers before invoices are due. Create and manage those good relationships! Understanding can work both ways when it comes to cash flow.
- Cut costs and your cash will go further. Review every aspect of your business. Do you need to pay for an item outright? Or can you pay by monthly direct debit and ease cash flow? Are there costs in your business that can be reduced or removed completely? An immediate improvement to your cash flow and profitability.
If your business needs help in any of these areas feel free to give me a shout.