Three Great Tips to Really Improve Business Cash Flow – Perth Accounting

It is no doubt that when it comes to running a business, cash flow can have a huge impact on the day-to-day operation and future of any company.

In fact, we often have business owners come to us regarding the topic, looking for ways that will allow them to better set-up and run their business.

After all, without a system in place, it makes it a lot harder to predict and make many financial decisions.

When it comes to improving your business cash flow there are a number of actions business owners can take and a number of processes you can put in place to not only guarantee cash coming in, but to ensure your books remain up to date.

Here are three tips for creating a better cash flow for your business:

Are you using a system?

Many systems these days such as Xero have some extremely helpful tools in place, ensuring that in a matter of a simple click, businesses can automatically send out payment reminders.

The system is very flexible and allows you to switch accounts on and off according to the businesses that owe you a payment.

If that doesn’t work, there are a number of other options to ensure the cash is coming in.

Many businesses choose to use an app such as debtor daddy, giving you different options to remind clients about payments.

This is also an app we use, and we tend to start off with an automated email reminding clients about the unpaid invoice and also follow up with a phone call.

Keep in mind, unpaid invoices are not necessarily a result of someone not wanting to pay you.

Your invoice may have been forgotten about, misplaced, or accidentally landed in an email spam box, so having a reminder system in place would actually be appreciated by your clients.

Again, the most important part is, have a system in place where you can track everything.

At Eventum Consulting we encourage all businesses to first identify your business and cashflow pain points.

Whether it’s the process you have for collecting payments or certain parties involved that create a longer than necessary flow of the cash, we recommend you talk to someone who can assist is getting you and your business the best result.

If you have any further accounting or finance questions, feel free to reach out to us at Eventum Consulting and we would be glad to assist and guide you in the right direction.