9 ways to improve your small business cash flow
You can never do too much to improve your small business cash flow. Here are nine top tips for optimising your small business finances:
1. Recognise ‘scope creep’
Check you’re not providing more in terms of products or services than you’ve promised, which can easily happen over time.
2. Incentivise timely payers
Give something back to clients who consistently pay on time. Maybe offer a small discount or free extra after a year of timely payments.
3. Adopt a subscription model
Secure future sales, receive cash up-front and schedule resource procurement in advance by adopting a subscription-based model.
4. Assess new technologies
New technologies could save your company thousands, or be an expensive mistake. Always analyse cost-effectiveness before committing to invest.
5. Renegotiate fixed debts
Interest rates have held at low levels for the past few years, so now is a good time to ask lenders to renegotiate your fixed debts.
6. Use cash, not credit
It might mean spending time saving before you invest. But, switching from credit to hard cash can free you from unnecessary interest repayments.
7. Try high interest savings
Open a high interest savings account for larger sums. This way, you’ll earn an extra top-up with no additional effort.
8. Business credit cards
If you have to use credit, find a business credit card with cash-back and take full advantage of the grace period.
9. Accountancy software
Use advanced accountancy software like Xero to track your cash flow accurately with help from a dedicated small business accountant.
Call on 3 Wise Bears for more expert small business accountancy advice.