Keeping track of your business’s incoming and outgoing cash flows can be tricky, but is critical during uncertain times when revenue may fluctuate. Here are 4 simple and useful actions you can start today to help you manage and improve your business’s cash flow.
Here’s a quick look at what this article will cover:
- Invoice quickly
- Offer multiple payment options
- Use tools to manage your cash flow
- Review your operational expenses regularly
1. Invoice quickly
The faster you invoice your customers, the quicker you’ll get paid. Rather than waiting until the end of each month, send out your invoices as soon as you have rendered a service or delivered goods. Your customers will still have up to 60 days to pay (depending on your business terms)but you’ll save yourself valuable time right from the start. With trade credit by Lulapay, you can invoice your customers & get paid immediately while still offering them payment terms.
If this doesn’t work, you can also send payment reminders to those “late-comers” or simply pick up the phone and call them.
2. Offer multiple payment options
By offering your customers access to a variety of payment gateways, you open your business up to immediate or faster payment. These include online payments via credit or debit cards, mobile payments, or other affiliate payments such as YOCO, Zapper, Snapscan, Fastpay, and even Masterpass.
3. Use tools to manage your cash flow
Managing the cash flows in and out of your business can be challenging enough, but dealing with the additional accounting and tax work that comes with it is another task. Introducing Lulaflow, Lula’s powerful cash flow manager that helps you effortlessly track and manage your cash flow in one place. Imagine the time you could spend on the things you love. No one loves admin! This powerful new cash flow manager helps you do exactly that, with a tool that provides tailored insights on your business income, expenditure, and cash flow forecasts. After opening an account, the platform gives you a 360 view of your entire cash flow.
You could also consider using a cloud-based accounting system such as Xero & Sage to make managing this easier. More advanced systems come with built-in plugins like project costing, quoting, and inventory management to help alleviate the burden of system administration and automate these processes for you – giving you valuable time to focus on growing your business.
4. Review your operational expense regularly
Managing your cash flow isn’t only about the money that comes in, it’s also important to reduce the cash going out of the business as much as possible. Take the time to review your expenses and see in which areas you can reduce your operational costs. Avoid spending money on things that aren’t necessary for your business and choose wisely which areas you want to focus on. Make sure you cut costs only where you can afford to and don’t cut back in areas that may harm your business.
Understanding your business’s cash flow will not only help you plan for future growth & development but will also give you great insights into your business’s current financial state and how cash is moving within your organisation.
