Keeping cash flow consistent is one of the most common challenges that comes along with running a small business. Knowing some of the basic rules of cash flow can help your business can keep your money worries at bay. These rules can help you stay in control of your finances and keep your business above water.
- Cash is king. Cash is what keeps any business alive, including yours. Manage it well and with care, because it’s what is allowing your business to operate and thrive.
- Maintain a positive balance. Make a commitment (and stick to it) to do what you need to in order to maintain cash flow.
- Always know your cash balance. It’s critical that you always know your business’s exact cash balance. You don’t need to know it off the top of your head at any moment during the day, but you should be able to easily access it at all times. Being aware of your balance is very important, especially while taking care of any costs. You don’t want to make a purchase and not have sufficient funds.
- Invoice clients as soon as possible. If there is any delay in your invoices being sent out to your clients, there will be an equal delay in receiving cash.
- Cash flow issues don’t happen without warning. Be sure to go over your records periodically. If something seems wrong, address it as soon as possible to avoid any major cash flow problems.
- Get professional advice. If you’re not comfortable with doing projections and analyses, or just don’t have time to, seek professional help. Someone who does this sort of thing for a living will give you much more accurate info than if you’re not quite sure what you’re doing.
If cash flow seems to be an issue for you, invoice factoring could be a solution. Contact us today for more information.