While knowing how to market your business, gain and retain clients, and take on the competition are all vital parts of growing a small business, all of your efforts will be for nothing if you don’ know how to manage your cash flow. There are certain systems you must have in place in order to keep track of how your money moves through your business.
Perhaps the most important part of managing your cash flow is vigilant record-keeping. You need to have a set-in-stone process for filing all financial documents that come through your business, including bank statements, receipts, and invoices. You filing system doesn’t have to be an overflowing drawer in a cabinet, either; these days it’s much easier to store and track these documents digitally. If you plant to extend credit to your customers, you must also know how you’re going to get your money as soon as possible. One way is to offer discounts on invoices that are paid quickly. You should also put payment terms in place. It’s common to request 50% of any contract up front and receive the rest in 25% increments, for example. How else can you ensure that your cash flow is healthy?
Read the full article here: 7 Ways to Manage Cash Flow