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For small business owners in particular, maintaining a decent cash flow at this time of the year is fundamental to staying afloat, and so keeping on top of your cash flow has to be a top priority. Bartercard knows small businesses inside out, and in this article they share some tips on how you can maximise the cash flow in your SME.
To begin with, get in the habit of preparing and sending invoices straightaway. What’s more, send them by email and that way they will get to the relevant person immediately. And while you’re at it make it easy for the customer to pay the invoice by providing your online banking details. Similarly, you need to make it clear to customers what your payment terms are; a reasonable timeframe for the average small business could be 14 days.
Technology, especially cloud-based accounting, has made it much easier to manage cash flow, and investing in reliable accounting software will be a great time saver and will allow you to focus your energies on other important tasks.
Focus on cash flow not profits. If your cash flow is in order, then it is a follow-on effect that your profit will also be in order.
You should also consider introducing incentives or fixed rate payment packages.
If late payers are a big problem in your business, then another way to keep cash flowing is to introduce incentives for customers to pay on time. You could perhaps offer a deduction off the total for full payment or a week free – whatever makes sense in your business. Alternatively, you could offer fixed rate payment packages, so, if a client pays for a whole year’s worth of services or product upfront, they get one month free. This way you’ll be getting paid in advance rather than in arrears, and the extra cash can help you explore opportunities and grow your business more easily.
Bartercard is a valuable way to conserve cash flow by sourcing products and services without opening your wallet. Use your trade dollars instead of cash to pay for services like bookkeeping and accounting, setting up your e-commerce store, printing, advertising, website, graphic design and SEO. Source products like office equipment and supplies, furniture, collateral and even wine to serve in your restaurant or gift to clients. At Bartercard there are endless ways to conserve the cash flow essential in business.
Members can visit mybc.bartercard.com to start shopping or speak to your trade broker. If you are new to Bartercard you can enquire to see how you can boost cash flow in business, every day. Effective cash flow management is critical to the success of your enterprise. Give your business the best possible chance by using these tips and keeping on top of cash flow, and for more information on selling inventory, profit increase and getting more customers please go to www.bartercard.co.nz .