Tag Archives: cash flow management

9 Tips on How to Successfully Row your Cash Flow Boat

Posted on

Sailing through turbulent waters, when it comes to cash flow? Read this blog post to find out 9 interesting tips on cash flow management.

Trying to successfully run your business without managing your cash flow is like trying to row your boat without an oar. Effective cash flow management is a must for all businesses, especially start-ups. Cash flow management can assist you with managing your accounts receivables, payables and shortfalls. An effective management of all three can put your enterprise on the road to success.

Here are some tips on how to successfully row your cash flow boat with the aid of cash flow management services:

1.Evaluate your breakeven point
Determine when your business will become profitable. This will give you a goal to strive for and a target to project your cash flow in the future. Understanding your breakeven point can help you focus towards achieving a profit, while managing your cash flow.

2.Cash flow management should be your focus
Utilize your breakeven point as a benchmark and when you reach it, be sure to manage your cash flow. Effective management of your cash flow, becomes all the more important when your business is profitable. Continue reading →

6 Invoice Tweaks to Get Paid Faster

Posted on

Here are a few simple adjustments and additions that you can make to your invoices, which will speed up the payment from your clients and ensure that you get paid.

For most businesses, getting paid on time is important, as payment delays can lead to serious disruptions in the cash flow. If you are searching for a way to speed up your payments, remember that the most effective solution is often also the simplest one.

Did you know that the invoice which you send to your customer is the most important form of communication in getting paid on time? By making small tweaks, additions and adjustments to your invoices, you can ensure faster payments from your customers and also make sure that you always get paid for your services.

1. Add “Please” and “Thank You”

When it comes to your invoices, good etiquette can maximize the probability of getting paid. By simply adding a “Thank You” or “Please” to your invoice, you can increase the likelihood of getting paid by 5%. Making this change to your invoices could result in adding thousands of dollars to your account.

2. Customize the invoice

Make it a point to ask all your customers what they actually require on their invoices. Though this will take time, it can save you time and money, as you will not have to re-invoice a client because of incorrect/missing information. For example, you could ask if the customer requires a general description or a detailed breakdown of the services.

3. Use “days” instead of “net”

Did you know that using the term “days” over the term “net” can actually help you get paid on time? Though terms like net 60 or net 30, make sense to you, customers may not always understand what they mean. Make it simple for your customers by including a phrase like “payment due within 35 days”. This will help your client to immediately identify the time frame. Avoid terms like “due upon receipt” which may confuse the customer about when the invoice should be paid.

4. Charge an interest fee

If you haven’t been charging an interest fee, then it is time you did. Including a late fee, will urge your customers to pay their invoices on time. Also include the fee percentage and when it is applicable. Continue reading →

Why Is Cashflow Management Important For Your Business?

Posted on

Does your business constantly have to deal with financial trouble? Do you struggle to pay your suppliers, taxman or staff on time? This is a common problem that is happening to several businesses of all sizes, the root cause being an ignorance of cash flow management, which is interregnal to the growth of a company. Cash is the lifeblood of your business enterprise, and if your business wants to be successful, then it’s time you paid attention to your cash flow management.

The world is currently going through difficult economic times. Today, banks are not supporting businesses as they used to in the past. At the same time, many businesses operate on a culture of slow payment to their end- suppliers. This is fast-becoming a top-down problem. This all means that you must take appropriate action and implement strong cashflow management into your company. You can start by managing your outgoing payment, while asking everyone who owns your business money to pay you back as soon as possible.

You can get rid of this problem by implementing a strong cashflow management process into your business. Ensure that you manage your outgoing payments and get everyone who owes you money to pay you back, as soon as possible. Here are some tips that can help you manage your cashflow (receivables and payables) with ease.

Tips on how to deal with your receivables:

  • Get your customers to pay you back faster by offering small discounts (For example, a discount of 1-2%)
  • Agree to invoice customers at regular intervals for long-term projects. Do not wait to bill your customers until the project is completely finished
  • Ask your customers for a deposit or a part payment before you commence work on a project
  • Make sure that you carry out a detailed background check on the credit scores of your customers
  • Ask your team to send out correct and clear invoices promptly to customers. Send gentle reminders to your customers to pay up before an invoice becomes overdue
  • Stop dealing with customers who refuse to pay on time. Ensure that you take legal action on customers who have failed to continually pay on time
  • Get your business funding from your investors

Tips on how to deal with your payables:
Continue reading →

Stop Business Failures with a Cash Flow Statement

Posted on

If you want your company to experience success and get ahead of competing rivals, then you need to effectively manage your cash flow. Predicting your company’s cash requirements ahead of time or at critical times and implementing the right measures can help you steer clear of business failures.

But what if cash flow management does not fall under your area of expertise? Or maybe you have no time to focus on your cash flow? You can consider outsourcing cash flow management to an expert in India. No matter the type of your industry or the size of your company, you can avail a flexible cash flow management service from India.

9 ways through which outsourcing can improve your cash flow

  • Get accurate predictions on your cash flows
  • Effectively manage your cash flow daily
  • Handle financial risks with ease
  • Easily maintain a electronic fund transfer system
  • Review and evaluate your current banking expenditures
  • Negotiate contracts for your financial and banking sector
  • Benefit from fraud control programs
  • Get a tailor-made cash flow solution as per the requirements of your business
  • Reach your financial goals with ease and efficiently handle your business activities with accurate cash flow statements and reports

Continue reading →