Properly Dealing With Cash Flow
The lifeline of any small business is cash flow. Without having the proper cash flow, you will not be able to stay open and provide the services or products that your clients need. Keep these cash flow tips in mind to help ensure the stability of your small business.
- Embrace bookkeeping – reconcile cash every day, or every week at the minimum. The better you keep up with the cash that is coming into your business, the easier maintaining cash flow will be. If you allow the cash to pile up without knowing where it is coming from, you will have to dig into your records, which can make the process slow and tedious.
- Tighten up on unpaid invoices – if you have any receivables to manage, go through your aging report at least once a week and call anyone who is past due on their payment and ask when you can expect to be paid. Even if someone is just one day past due, give them a call. Keep in mind that any customers that are 30 days past due on their payments are officially in arrears.
- Think of the future – see if you have any cash flow trends so that you will be able to properly plan for them. Look through your bookkeeping records so that you will be able to better predict the business that you are expected to do. The better you prepare, the smoother your company will run throughout the year.
Contact Phocus Companies in Phoenix, Arizona for all of your financial planning needs. We offer cash flow management, statements, analysis, and forecasting to help you stay on top of what is important, as well as what is coming in and going out of your business, to help set you up for success.
