If your answer to that is ‘no’, then it’s time to rethink your approach.
Cash flow is a significant challenge to any growing organisation. And if the amount of money flowing into your business isn’t commensurate with your growth aspirations, you could overstretch your resources and fall flat on your face.
In fact, 4 in 10 small businesses fail to make it to five years of trading, with poor cash flow cited as a major problem.
So, how do you avoid becoming just another stat, and instead continue on an upward trajectory? By controlling your cash flow, of course. And here we share three simple tips to do just that.
Take Control of Your Cash Flow Today
1. Introduce Real-time Accounting
It’s often not enough to simply know your numbers; you need to be certain that they’re accurate and up-to-date. Working with fresh financial information is the dream operational scenario, as it allows you to make informed and effective decisions that will positively impact your cash flow. And the simple truth is, trying to manually input that information into a spreadsheet daily or weekly can quickly leave you behind the curve.
By introducing cloud accounting to your business, you’ll enjoy all the benefits of having access to real-time data, while also experiencing a major boost in confidence where your decision making is concerned.
2. Demonstrate Exceptional Expense Management
Sometimes growing your cash flow has more to do with trimming expenses than it does with increasing sales. Once again, cloud accounting software can help, allowing you to demonstrate exceptional expense management by offering a clear picture of when and where your money flows back out of your business.
By running daily, weekly, or monthly reports, you can identify surplus costs and pinpoint areas within your business ripe for streamlining.
3. Get What You’re Owed
We asked this question recently, and we’ll ask it again:
Do you know if your clients have paid you on time?
If you find yourself running into cash flow crisis after crisis, clamping down on debtors can be a worthwhile exercise. After all, you’re running a business too, and you deserve to be paid on time for the products or services you provide.
That’s where implementing a cloud accounting platform can come into its own; with automated invoices and reminders, your customers will have no excuses for not paying you within the agreed time limit.
We Can Help You Grow with Confidence
All in all, running a tighter ship – one where you have access to accurate financial data, streamlined expenses, and are able to collect payments in a timely fashion – can have an incredible impact on both your cash flow and growth prospects.
If you need a helping hand with cash flow, cloud accounting, or expense management, contact us today to speak with one of our friendly business advisers.