Cash flow, as we’ve told you before, is critical. If you don’t pay close attention to how money flows into and out of your company, you could find yourself in an existential crisis real quick. As a manager, getting a grasp on cash flows is one of your most critical tasks. Here are three tips that can help you avoid trouble and optimize your cash flows right now.
One of the best ways to optimize your cash flows is to track them closely. This will help you anticipate shortfalls, and improve your forecasting capability. Most financial accounting software available today can provide you the cash flow data and reports you need to do this. The team here at VerifiaBill can help, too. Our custom reporting and analytics tools are designed to show you how VerifiaBill is decreasing your insurance costs, and boosting your profits.
Get Some Credit
Even when your business is successful, it may be challenging to pay your bills. Many expenses, like utilities, rent, and payroll, have hard due dates you cannot miss. Customers, on the other hand, may be slow to pay you for goods and services rendered. One way to ensure healthy cash flows is to secure a line of credit with a bank or other lending service. This will enable you to take a short-term loan to tide your business over while it is waiting for customers to pay you.
Expand Payment Options
You can accelerate your cash inflows by increasing the options customers have to pay for goods and services. Many American companies accept cash or check only; if you are one of those, consider expanding, as a minimum, to credit cards. Doing so may not only help shorten your receivables cycle, it may also increase sales overall. Accepting other forms of payment, such as PayPal, can help optimize cash flows, too.
Are your cash flows where you want them to be? If not, consider these tips. They can strengthen your cash flows, and help improve your company’s financial health, too.