Making Your Small Business Financially Stable

18:51' 05-07-2017
A stable and reliable cash flow is essential in business. If you can’t cover your expenses, you might lose earnings opportunities. There are a few simple steps you can take to improve your business cash flow.

     Improve Financial Stability in Your Small Business in 7 Steps

    Photo: howtoi.com.au

    Quicker receipt of cash

    • Send invoices to your customers immediately after you deliver the goods or services.
    • Change to shorter terms of payment.
    • Give small discounts to early paying customers, and charge penalties to late payers.
    • Do a thorough background check before offering credit.

    Organise your billing

    • Use accounting software to help you bill early and regularly.
    • Use the software's automated flagging systems to reveal overdue accounts.
    • If you do your accounting only in hard copy, keep a logbook of all invoices you send, with a reminder note for the latest date when the bill can be paid.

    Payment strategies

    • Ask your customers for a downpayment to help finance a project, instead of spending your company's money. That can also stop them from changing their mind about using your business.
    • Encourage your customers to use debit and credit payment cards.
    • Pay your suppliers close to the end of the allotted time, usually 60 to 90 days.
    • Take advantage of discounts for early payment from your supplier.

    Business credit card

    • Use your card’s grace period or cash-back features.
    • Consult your banker or financial adviser to recommend the right card for you.

    Fit prices to rising costs

    • Keep records of full costs of your work, even if this doesn't appear on a customer's invoice.
    • Don't hesitate to increase your prices for fear of losing customers.
    • Regularly check on what your competitors are charging.

    Phung L

     

    Vocabulary Rating Review

    •   Good contents
    •   Average Contents
    •   Not as good
Keywords: a stable and reliable cash flowpayment strategiessmall business

Updated News