Business Cash flow Positive

Could Your Business Be Handling Your Cashflow Better?

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When it comes to your business, cash flow is something that is massively important to your business. However, as things move forward with your business, the plates keep spinning and in theory, you may lose sight of the important aspects and what needs to be kept on top of. The accounting side of things is definitely one thing you need to keep an eye on so how can manage the cash flow of your business better? How can you keep things in the black rather than the red? Here are some of the best ways to do it. 

Get paid when you invoice

When you send out an invoice, many will offer a thirty day window for payment, and most of the time this is just a generic way of doing things. But, this means that although you know the money is coming to you, chances are you need to wait before it lands in your bank account. The same can be said for your invoices that you receive. If you do have a lot of invoices waiting to be paid, there are other options to consider such as BCashflow Positive where you could consider financing the invoice for a quicker payout. 

Paying out your invoices

As mentioned previously, as you get the benefit of a thirty day window for payment when things are invoiced through the trade it is important for you to take advantage of this. Keeping the money in your business bank account as long as possible helps your accounts to look healthy, and keeps you on top of things such as cash flow and also knowing where you are going to be. You can then use the invoices to predict what the financial situation will be like for the future. 

The importance of realistic financial projections

When it comes to cash flow you are only as good as your financial projections. This is where your accounting will be predict where they foresee your business to be in terms of profit and loss as well as what’s in the bank, what needs investment and where money needs to be spent. Not having realistic projections means that it can be impossible to predict times where you really need to keep and eye on that cash flow and understand when it will need attention or situations need to be rectified. 

Making sure you can manage the shortfall

Finally, you need to ensure that as a business you can manage any shortfall you have in terms of cash flow, payables and receivables. A quick way to do this is to refer back to those original financial projections which should be able to predict the times when a shortfall might be in place, and therefore you can then plan accordingly to ride the storm and bring money back into the business. 

Let’s hope that these tips help you get a better handle on your cash flow in your business. 

15 Comments
  1. Kuntala 4 months ago
    Reply

    Useful article. Thanks for sharing

  2. Fae Celine 4 months ago
    Reply

    I’m new to the business world so I don’t really know much but these are definitely great tips. Thanks for sharing

  3. Chad 4 months ago
    Reply

    Amazing insights!!!! I really needed to read this post, i am so happy I came across it, it is great and will def help.

  4. Paula Stewart 4 months ago
    Reply

    Too often we don’t have enough cash to handle late payment on a receivable. Which causes a multitude of problems.

  5. Kalyan Panja 4 months ago
    Reply

    Thanks for sharing about these nice tips for managing the cash flow of a business better! It will be helpful to many who are searching for inspiration.

  6. twinspirational 4 months ago
    Reply

    Such a great article and great topic discussed. I agree to all your points here

  7. Lavern Moore 4 months ago
    Reply

    These are some great ideas to improve cash flow. Like the old cliché says cash is king and it is so true.

  8. Megan Kerry 4 months ago
    Reply

    Realistic financial projections would definitely be helpful when handling cash flow. Even when running a household its so important to be realistic with how much things are really going to cost.

  9. Courtney Schweiger 4 months ago
    Reply

    I am all about being money-wise.

  10. Karissa Martinez 4 months ago
    Reply

    Very informative for small business owners! Especially when managing realistic expectations

  11. Sue-Tanya Mchorgh 4 months ago
    Reply

    Oh my goodness. This was so helpful. I have a small business and for the most part i think i am handling the cashflow properly but this was very helpful. I really liked the part about being prepared for any shortfalls that may happen because they will.

  12. Kaitlynn 4 months ago
    Reply

    I am an accountant, and I can definitely recommend these tips. It is a great idea to pay your bills as soon as you can. You’ll be able to see how much money you actually have that way.

  13. tweenselmom 4 months ago
    Reply

    Thanks for these great tips, it’s essential even for budding entrepreneurs like me.

  14. Ana 4 months ago
    Reply

    Couldn’t agree more with the points that you have mentioned! It is so important to manage cash flow for creative professionals like us!

  15. Sundeep 4 months ago
    Reply

    Thanks for sharing some amazing tips to handle better cash flow

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