Cash flow is a reliable indicator of your business’ overall financial position and health, and when managed well, it can mean the difference between your business thriving, or struggling. Its main purpose is to help business owners understand how much money is coming in and out of their business and when, and how much money they have available to pay operating expenses.
Identify patterns in your cash flow
By going through your previous cash flow statements, you can identify patterns in the type of transactions coming in and out of your accounts. This allows for you to analyse the financial state of your business, allowing for a well-planned out budget for the coming months and a smooth cash flow cycle.
Prioritise keeping your bookkeeping accurate and up to date
Your cash flow depends on the accuracy of your accounting and reporting. Bookkeeping is important for you to stay on top of your financials because it allows you to understand the financial state of your business and how you can operate at lower costs.
Stay on top of overdue client invoices
Having a follow-up strategy for overdue invoices can get you a long way with ensuring you get a regular flow of income. Clients paying late or not at all is an unavoidable situation, however, having strategies in place to follow-up will help keep your cash flow moving.
Ask your accountant or lawyer to pay their services in instalments
It’s no secret that professional services don’t come cheap. If you have received services for your business from your accountant or lawyer, consider breaking up the amount owed into smaller, monthly repayments. This allows for a more manageable cash flow plan to ensure you are making affordable payments instead of large lump sums.
See What is Fee Funding?
Building and operating a successful business is a marathon, not a sprint. You need to have a well thought out plan and strategy on how to reach your long-term goals. One of the most important factors for building a successful business is knowing how to manage your finances effectively to avoid significant loss.
Fee funding is one of the most-effective strategies in managing your cash flow. SmartFee allows you to pay off your professional invoices at lower, more affordable costs, enabling you to have a smooth cash flow cycle without any unexpected large lump-sums that can be expensive.
Get in touch with SmartFee today on 1300 723 243 to have a chat with our team on how we can help simplify your invoice payments.
We’re just another way to pay!