Handy tips to help manage your cash flow

 

To make sure you always have enough cash available to keep your business operating, consider:

 

specifying a pay-by date on your invoices so you know when you will receive payment, rather than just saying 'Due within 30 day

 

issuing invoices at the same time as you provide goods or services, rather than leaving it until the end of the month

 

offering a discount to customers for paying invoices early

obtaining a deposit from customers for more expensive items or when they order

 

encouraging late payers to pay by offering them a discount for paying by credit card

 

having a firm policy on accepting personal cheques and offering credit to customers

 

making sure you don't have money tied up unnecessarily in excess stock

 

checking when you have to pay incoming invoices to work out how you can stagger your payments

 

banking amounts you receive (cash and cheques) regularly so that you have a better idea of your actual cash position

 

adjusting the amount you pay yourself at times when your cash situation is tight

 

looking at how you can better use the people resources you have, rather than employing more people.