The latest guide in our Business High Five series, The SME Guide to Improving your Cash Flow, offers useful insights to help you manage and improve your business’s cash flow and increase profits.
In this guide, your SME will be able to make use of insights on:
- The Importance of a Cash Flow Strategy
- Practical Tips on How to Manage Your Cash Flow
- Technology to Help Manage Your Cash Flow in Real-time
- Sustaining Your Cash Flow Improvements
- Cash Flow Management Tools
The Importance of a Cash Flow Strategy
Proper cash flow management is a critical strategy that any business owner must understand if they want to achieve long-term financial success but is also one of the most difficult issues that business owners confront.
Reliable cash flow projections are likely to increase shareholder trust, while enhanced budgeting should help you gain better control over costs and generate higher profits.
Practical Tips on How to Manage your Cash Flow
The best way to avoid a cash shortage is to plan ahead. As soon as you foresee a cash shortfall coming up, it’s important to look at all the options you have to increase your cash in hand.
- Be forthcoming with customers
- Review your operational expenses
- Re-evaluate the pricing of your goods and services
- Secure funding before you need it
Technology to Help Manage Your Cash Flow in Real-time
As a business owner, you should use technology to simplify and improve the efficiency of your company’s operations. You can budget and easily forecast future cash flow when you can see all of your business’s financial activity and accounts in one place. This is where online financial management dashboards can add so much value.
Sustaining Your Cash Flow Improvements
Any cash flow improvements you gain may soon deteriorate if you do not have an adequate cash management system. Many SME owners ignore the small changes that can be made to their operations, believing that the changes are insignificant and not worth the effort. However, a combination of minor modifications to inflows and outflows will have a significant influence on your overall cash flow.
Cash Flow Management Tools
Our talented financial experts at Lulalend have put together a list of cash flow tools to help you get a better view of your business’s finances so you can plan more accurately for the future. The two options below have proven beneficial for many businesses across the board and are worth the investigation.