9 Tips on How to Successfully Row your Cash Flow Boat

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

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