Here are five tips for managing cashflow and keeping on top of finances:
- Set cashflow targets
One way of controlling cashflow is by preparing and maintaining cashflow forecast. It is advised that you update it weekly, to provide an accurate outlook for the next six to twelve months.
- Agree clear payment terms
It is difficult to know when you are paid if you are not aware of the payment terms are. Also, if you do not know when a payment is overdue, it will be difficult to manage your cashflow.
- Invoice quickly
Some factors that influence cashflow are in a business’s own hands, including when to invoice.
- Make payments easy for customers
Try to avoid being paid by cheques as it will result in delays before the money arrives in your bank account. Online payments are a much better option.
- Use technology to manage cashflows
The biggest time-saving accounting method is cloud-based accounting. It also removes the worrying hassle of backing up all the data.
If you would like to get more tips on how to manage cashflows for small businesses, make sure to go through the source website: https://www.theguardian.com/small-business-network/2013/oct/30/cashflow-top-tips-small-business