Using small business software to manage businesses’ cash flow
Remaining in control of your small business’s cash flow is absolutely critical to its financial sustainability. Cash flow simply refers to the finances that are entering a business and the cash that is leaving it in the form of expenses. Carefully monitoring your company’s cash flow is essential to assessing its financial health and ensuring its growth and success.
One of the most effective ways to monitor your small business’s cash flow is by making use of small business software, such as the accounting packages offered by QuickBooks. These advanced programs have been designed to help small business owners assess the financial status of their companies at all times, providing an accurate overview of the cash entering and leaving the company at any given moment, or during a specific period of time.
Over and above making use of small business software to keep tabs on your cash flow, there are a number of other ways to manage this critical element of your business. Read on for tips on managing and improving your company’s cash flow, and check out QuickBooks’ advanced range of accounting packages for small businesses.
Tips to improve your business’s cash flow
If your company’s cash flow is the best indicator of its strength, it’s important to keep it as healthy as possible. By using small business software and following the tips below, you’ll not only better control, but also improve, the cash flow of your business.
- Invoice immediately for products delivered or services rendered. Have a system in place to ensure that invoices are sent out as soon clients have received their goods, and consider setting up regular payment schedules for long-term clients.
- Offer incentives for prompt payment. If clients know that they’ll receive a small discount, for example, for settling their accounts within a certain amount of time, they’ll be far more likely to pay you promptly. For most clients, a discount of just 1 or 2% will offer enough motivation for swift payment.
- Create realistic budgets – and stick to them. Decide how much money you’re going to spend on assets, supplies, maintenance and so forth, and adhere to the amounts you’ve set aside. You run the risk of eating into your profits if you overspend on these aspects of the business.
- Run financial checks on debtors. Before offering credit to clients, assess their financial status and check their credit references. Slow and non-paying customers can seriously damage your cash flow, and transacting with such clients should be avoided where possible.
- Review your expenses and cut back where possible. Don’t just accept all costs and expenses – analyse what you’re paying for, negotiate more affordable terms with vendors, and cut back where you can. Also consider implementing a “bartering” system with clients where possible: Offer your service in exchange for theirs, instead of paying them cash.
QuickBooks’ small business software: For easy, effective cash flow management
QuickBooks’ small business software has been designed with the small business owner in mind. Efficient and easy-to-use, this software takes the guesswork out of managing your company’s cash flow, ensuring that you’re in control of your business’s financial status at all times.
View our complete selection of small business software online, or chat to us today about implementing the right software solution for your company.
QuickBooks SimpleStart - for new and home based business
The simplest way to manage and track money going in and out of your business.
QuickBooks Pro - manage your business accounts simply and easily
Manage your business accounts simply and easily.
QuickBooks Premier - fast and easy advanced accounting
Fast and easy advanced accounting.
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