As high interest rates continue, managing your small business cash flow is more important than ever.
Cash flow is the total amount of money that goes in and out of your business. By maintaining a consistent, positive cash flow, companies have an easier time:
Paying expenses
Managing debt
Investing in new opportunities
Growing as an organization
Here are 5 tips for managing cash flow, courtesy of Wells Fargo:
Organize your bill-paying cycles. Don’t pay everything all at once. Stagger payment dates based on their importance, with rent and payroll being your main priority.
Negotiate payments with supplies. Learn what flexible payment options are available, and schedule payments so that they’re both on time and when you can cover the bill.
Encourage quick payments. Send invoices promptly, check to ensure they are received, and follow up if payments are late. Also, consider implementing a cash-on-delivery policy for clients and vendors who are notoriously late.
Use a business credit card. Business credit cards can cover everyday expenses and free up your business checking account when needed. Many cards come with great rewards, like miles and cash back.
Consider getting a line of credit. A business line of credit can help you manage your cash flow cycle by bridging any gaps between payables and receivables. You can also use this money to cover one-time or seasonal expenses, buy new equipment, or leverage growth.
At Value Logic Solutions, we’re here to help you accelerate growth and maximize profits. One of the ways we do that is by helping you optimize your pricing strategy. By accurately pricing your products and services, you’ll increase your bottom line and positive cash flow. Are you ready to improve your cash flow?
Q. What steps do you take to manage your cash flow?