Managing a small business can be stressful, with so many day-to-day tasks to think about and stay on top of it can be easy for some things to slip through the net. In this article, we talk about five important tips for managing small business cash flow.
1. Accounting software
Monitoring your cash flow is a particularly important task, and one way to stay on top of this is with accounting software. This will help you to manage it more efficiently and keep a detailed track of what is coming in and going out of your business.
There are lots of different software packages out there which are inexpensive, but if you’re not confident with managing your finances in detail then hiring an accountant or bookkeeper is a great option.
2. Chasing payments
Chasing outstanding payments can be a frustrating task so one way to improve your cash flow is to get your customers to pay on time.
One way to achieve this is with online invoicing software which will send out automatic reminders to your customers that payment is due. They can then pay with a one-click payment option and take away the stress of chasing for outstanding invoices.
3. Business expenses
Keeping track of all your business expenses is another way to manage your small business finances. Again, digital banking or an accountant are going to be the best solutions.
Digital banking makes it so easy to track incoming and outgoing payments. Having all your payments and expenses go out on the same day might seem logical but it’s not ideal for managing your cash flow.
4. Manage your payroll
Employee wages are one of the biggest outgoings for any small business and there are plenty of ways you can be savvy about this.
Paying your employees via direct debit is a big-time saver and look at your payment runs – working bi-monthly as opposed to bi-weekly can potentially save on admin costs.
5. Reduce outgoings
Not keeping track of your outgoings is a sure-fire way of losing money quickly. If your business uses expensive equipment look at having it repaired or reconditioned as opposed to buying it brand new.
Try not to upgrade any products or equipment unless it is necessary, and if you are planning on using any business or accounting software look for open-source business software which is free to use for the end-user.
For more information about managing your small business cash flow, you can speak to one of the team here or call us directly on 020 3778 0973 or email email@example.com – we would love to assist you any way we can.