5 Steps to Reduce Cash Flow Stress
1. Bill Customers Immediatley
Time is of the essence when managing cash flow. Leverage technology to bill your customers quickly, reducing the amount of time to receive compensation for your products and services. Technology can also allow for easy payments, enabling customers to "quick-pay" on the go.
2. Incent Customers to Pay Quickly
Future discounts or freebies may entice your customers to pay their invoices "on-demand" or via auto-pay, reducing costly accounts receivable management and ensuring funds are available to pay for raw materials and labor.
3. Secure Loans or Funding Accounts
A safety net is helpful in alleviating the stress over whether cash will be available for large expenses related to running your business. Having these types of accounts setup BEFORE the funds are needed is critical.
4. Maintain Accurate Records and Cash Flow Statements
Accurate information and oversight is the best way to know how much cash is available at all times and will provide the power to manage vendor bills and recurring expenses without the stress of running out of cash.
5. Consider Increasing Prices
It is common for a business owner to be fearful of increasing the prices of products and services. Sometimes a company will go many years without a price increase, devaluing their business and creating cash flow issues.
YourCFOtoGo clients rely on timely and accurate financial statements to manage their business. They consult our CFO level expertise to establish cash flow management tools along with budgets and forecasts. Our clients are able to spend less time focused on financials and more time focused on their core business. We can help you, too. Contact us for more information on our process, our decades of service, and raving client reviews.
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