Keeping on top of your cash flow has to be a top priority, as a decent cash flow is fundamental to staying afloat, particularly for small business owners. As it happens, 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, starting with getting your invoices out promptly.
Small businesses need to get in the habit of preparing and sending invoices immediately the job is completed, and what’s more, send them by email and that way they will get to the relevant person immediately. You also need to set clear payment terms, which for the average small business could be 14 days.
Most importantly, 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 follows that your profit will also be in order. The opposite, however, is not true. Even profitable businesses need to have cash flowing through them to survive in the long term.
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. 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, using 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. At Bartercard there are endless ways to conserve the cash flow essential in business – members visit marketplace.bartercard.co.nz to start shopping or speak to your Account Specialist..
If you are new to Bartercard, you can to see how you can boost cash flow in business, every day. Effective cash flow management is critical to the success of your enterprise, so give your business the best possible chance by using these tips and keeping on top of cash flow. For more information on where can I spend my Bartercard dollars, the Bartercard online directory and Bartercard travel please visit http://askbartercard.co.nz .