If cash is king for any small business, a positive cash flow is the backbone to survival and success. Being nimble is a major advantage for small business. However, this can also result in fast turnover and sudden short falls. Keeping on top of financial incomings and outgoings can be a daily challenge. Here are some innovative ways to manage your cash flow:
Constantly Forecast and Monitor Your Cash Flow
Although, forecasting for projected earnings and losses can be as fun as watching paint dry, it is absolutely crucial. A forecast allows you to make informed decisions on which business areas have potential revenue growth as well as where to cut costs.
The fast-paced dynamics of a small businesses can make monitoring cash flow a fickle task. Yet, it’s the constant changes that require a close and frequent analysis of your business income and expenditure. Smart small business owners will even track their cash flow on a weekly basis.
Collect receivables immediately
Generating revenue can be an unpredictable game. However, keeping on top of invoicing and payment receivables will help maintain a positive cash flow. Here are some suggestions to streamline and efficiently collect money owing to your business:
- Issue and send invoice efficiently and follow up overdue payments
- Offer a convenient and secure online payment option on your invoice
- Offer discounts or incentives to encourage customers to pay early
- Secure a customer’s booking by requesting partial payment
- Make deposit payments mandatory when taking a customer’s order
Extend your payables
The key to a successful business is to keep cash coming in as quick as possible while holding back on expenses for as long as possible. Easier said than done? Here are some useful tips:
- Work closely and build strong, trusting relationships with suppliers who can offer flexible payment terms.
- Negotiate and maximise payment terms. If a payment is due in 30 days, see if you can extend it to 45 and don’t pay any earlier.
- Electronic funds transfer allows you to make payments on the last day they are due. This will help you retain funds for as long as possible without facing the stress of late fees.
- Streamline your accounts payable process and make payments digitally.
- Don’t leave it to the last minute to request an extension on payment. Look ahead at upcoming bills. Make a conservative decision whether you can make payment or not. If not, contact your supplier immediately and explain the situation.
B2Bpay allows you to pay all your invoices using existing credit cards, whether or not your biller accepts credit cards. B2Bpay accepts all major credit cards.
Pay your invoices through B2Bpay and you will:
- Boost cash flow by taking advantage of your credit card’s up to 55 day’s interest free period
- Earn Qantas Points
- Earn credit card reward points
- Earn full credit card points when paying ATO, insurance and telco bills
- Eliminate mundane admin and accounting tasks so you can go back to doing what you do best – building a business
According to a recent Wakefield Research study, within the 500 Australian small businesses that were surveyed, 50 percent have lost $10,000 or more by foregoing a project or sale specifically due to insufficient cash flow issues. Having a positive cash flow not only lets you sleep well at night but allows you to financially expand your business.
Whether you’re looking to tighten expenses or need efficient payment methods, B2Bpay allows you to streamline the constant movement of your business funds. Think of all the additional revenue and extra business opportunities that come along with it.
To register, click HERE. Setting up is easy and at no cost!