The most important tip to making a successful business is having a strong cash flow. That is why every single business owner should have to know what it takes to have that strong cash flow and ultimately make a business successful.

Here are the tips for a strong cash flow for your business.
  1. Have a cash flow budget. Expenses are inevitable to your business, but that should not be reason for you not to control spending. You have to create a budget for your spending and stick to that. Should there be a need to go over and beyond it, make sure you do not overdo it. To help you do this more effectively, you can use the Excel spreadsheet.
  2. Collect the payments as soon as you can. For some businesses, it is right to wait for 45 days before collection is made. However, if you can do it sooner, then why do you have to wait? Remember that you need that money and the customer may employ tactics to delay their payments especially in these tough economic times.
    Furthermore, you can encourage customers to pay up early by giving cash discounts to customers paying their invoices earlier. Also, you can refuse giving additional credits to customers who haven’t paid their current payables yet. And most importantly, when the due date has come and they haven’t paid up yet, you should make a follow up call the following day to the customer to remind them of their dues.
  3. When paying bills, do it on time, not early. As much as possible, hold on to that cash of your company for as long as you can. But when the due date comes, pay the bills and avoid risking your business’ credit record.
  4. Set aside money for taxes. For most companies, they take paying their taxes for granted. It is best to set aside the amount for that early on so when it is time to pay up, you won’t have to scramble for funds.
  5. When you close a project, it is advised that you send an invoice for the first half of the project. This will ensure that your coffers will not be empty. Then at the end of the project, collect the other half.
The most important tip for a strong business cash flow is to have accounting software online like Shoebooks. Shoebooks is the leading provider of comprehensive and customizable online bookkeeping and online payroll software for small businesses in Australia. Their models and packages are scalable to meet the growing demands of your business and have features that will make your business stand out and have smoother transactions.


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