4 WAYS TO IMPROVE YOUR BUSINESS’ CASH FLOW - Lulalend
Keeping track of your business’s incoming and outgoing cash flows can be tricky but is critical during uncertain times where revenue may fluctuate. Here are 4 simple and useful actions you can start today to help you manage and improve your business cash flow.
- INVOICE QUICKLY
The faster you invoice your customers, the quicker you will get paid. Rather than waiting until the end of each month, send out your invoices as soon as you have rendered a service. Your customers will still have 7, 30 or 60 days to pay, but you will save yourself valuable time right from the start. With Lulapay you can invoice your customers and get paid immediately while still offering them payment terms. You can also send payment reminders to those “late-comers” or pick up the phone and call them.
- OFFER MULTIPLE PAYMENT OPTIONS
By offering your customers various ways to pay, including online options such as credit cards, debit cards or mobile payments, the more likely they are to pay you faster. Making use of mobile phones can get you paid on the spot as soon as the job is done.
- USE SOFTWARE TO MANAGE YOUR CASH FLOW
Managing the cash flows in and out of your business can be challenging enough but dealing with the additional accounting and tax work that comes with it is another task. Consider using a cloud-based accounting system, such as Xero or Sage, to make managing this easier. More advanced systems come with built-in plugins like project costing, quoting and inventory management to help alleviate the burden of system administration and automate these processes for you-giving you valuable time to focus on growing your business.
- REVIEW YOUR OPERATIONAL EXPENSES REGULARLY
Managing your cash flow is not only about the money that comes in, but also important to reduce the cash going out of the business as much as possible. Take the time to review your expenses and see in which areas you can reduce your operational costs. Avoid spending money on things that are not necessary for the business and choose wisely which areas you wish to focus on. Make sure that you cut costs only where you can afford to and don’t cut back in areas that may harm your business.