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Many people want to have their own small business, but can they handle the responsibility? Sure, they want to be their own boss. But, financially, are they ready to do so? Are you ready to have your own small business, or do you already have one? Keep reading for tips on how to handle the cash flows of your small business and how Corcentric can help with your Accounts Payable Automation.
Why Corcentric?
Whether you are a small start-up or a large public enterprise, you can eliminate expensive and time-consuming manual data entry and approvals by automating your accounts payable process. CFOs are continually seeking ways to cut costs and optimize processes. Our accounts payable automation software allows you to manage all your invoices electronically and implements process automation, thus saving precious time and money. Corcentric offers you the option to go 100% paperless, leading to higher efficiency and lower chances of mistakes. You can view invoices in real-time and know precisely when funds are incoming or outgoing. In addition, you can set up Autopay, which ensures you don’t miss payments from any service you subscribe to. With Corcentric, on-demand reporting abilities give you the invoice data you need to have adequate control over your cash flows.
Eight Ways to Handle Small Business Cash Flow
- Lower costs wherever possible – A popular reason many small businesses fail is that they’re spending money unnecessarily on things that will not help the business in the long term. Are you spending money on services or insurance that you don’t need or are no longer using? Can you renegotiate the terms of pending loans and leases? Always think before you spend. You might also consider selling equipment or things that you’re no longer using.
- Stay on top of invoicing – Send invoices the moment that you receive a product or service for your small business. This will help you keep track of funds coming in or going out of your accounts. Also, design your invoices so they’re concise and easy to read with key points like due date, the product or service received, whom you received it from, amount, etc. To make things even faster, you can email invoices instead of physically mailing them. Also, there’s no need for traveling to be an excuse to not stay on top of your invoicing. You can use Invoiceto.me to work on invoicing while on the move.
- Regularly monitor your cash flows – This one seems like common sense, but it’s understandable that time can get away from you, and you find you cannot monitor every transaction. However, with the right tools, it’s easier and quicker than you think. Some small business owners use Quickbooks to keep track of money going in and coming out. You can also store your records in the cloud. That way, not only is it secure, but you can take it with you everywhere you go.
- Get a business line of credit before you actually need one – A business line of credit is a solid backup plan that will help with cash flow problems. Many businesses have a line of credit so that they can have additional money. You might get a line of credit for a portion of your accounts receivable or inventory, should you use it as collateral.
- Delay vendor payments – As long as it doesn’t affect your reputation or relationship with a vendor, check if you can hold off on paying them until you have to. This keeps more money in your account until it absolutely has to leave.
- Get quicker payments by using mobile payment solutions – There’s nothing worse than when things like rent and other bills are due, and you’re still waiting for a check from a client to clear or waiting to receive it in the mail. Consider a fast and easy payment service for your clients to use, such as Paypal. You might also speed up your payments by offering lucrative deals to your clients, such as discounts on early payments or on using payment apps. However, make sure that the risk is worth it in the long run, Basically checking if they are still paying you enough to help you out or if you can afford to take the hit. At the end of the day, is your business making more money?
- Get business credit cards to protect your earnings – Most successful companies have company credit cards. Look for cards with rewards and perks that will help with business and travel expenses. Besides providing that extra cushion, credit cards make it easier to track expenses because they itemize your purchases.
- Ask for part payments on long-term contracts and big orders – For instance, a property builder might ask for a deposit before they start the job, then charge half when they’re halfway done with the project, and the rest of the money when the job is complete. When you charge this way, you generate enough cash to finance the materials and the workers needed for the job. Plus, it guarantees that you get paid something on the off chance that a client ends up not holding up their end of the bargain.
Conclusion
You now have some good tips to help manage your small business. Make sure that you pay attention to money going in and out and that you’re not spending money unnecessarily. Pay your bills on time, unless you have arrangements with vendors to pay later. Be smart about whom you do business with, so you get paid at the end of jobs. Make sure that you get paid sooner, rather than later. Have faith in your abilities. With a bit of attention to detail and putting into practice what you theoretically already know, you will soon be seeing the results you’ve been hoping for! For more interesting reading, hop on over to https://businesspartnermagazine.com/.
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