There are many aspects of your business that can impact the amount of cash you have on hand. You can boost your cash flow by monitoring your expenditures and raising your profits.
Here are more tips:
Watch your stock levels
You will tie up your cash and multiply your storage and insurance expenses by keeping a large amount of stock. Maintain stocks at efficient levels by implementing good stock control. This includes monitoring and accounting for the items you sell, utilise or make.
Handle your accounts
Overdue accounts should be followed up on. You will see cash coming in when you manage debtors and implement good credit policies.
Negotiate for longer payment terms with your suppliers. You don’t have to pay out of pocket if you can secure payments from your customers before you pay your suppliers.
Evaluate banking products
You can have the money in your hand sooner if you utilise the right banking transaction products. Think about using a mobile eftpos device, or look into services to get paid through phone or on the Internet.
See if you can increase your profits by doing a pricing review, using an advertising campaign or enhancing customer service. Expanding your business may also be an option.
Consider cutting back on employee overtime and watching your operating costs or overheads. Institute eco-friendly measures and you may see expenses such as power and water bills reduced. Make sure your policies on these areas are clearly communicated to your employees.
Enhance your financial acumen or hire a professional
You can improve your cash flow by enhancing your management and financial acumen. Improve your business knowledge by attending workshops.
It is important for a business to have cash always available. Get help from a financial adviser or accountant, professionals who are experienced in assessing your individual situation, on how to improve your cash flow.
PJS Accountants offers accounting and other booking services to individuals and companies, big and small. Allow our team to evaluate your financial situation and advise you on the right measures to avoid cash flow problems. Contact PJS Accountants for enquiries.