Cashflow Business Tips
The CASHFLOW of your business is a result of your Cash IN and your Cash OUT. Each area affects the other and can massively affect how you actually feel about your business.
Cash comes in to your business through generating more sales, collecting money owed by your customers, putting money in from your own personal sources or putting borrowed money from a bank, a relative a friend and so on.
Cash goes out of your business by paying bills to suppliers and providers, by paying your people, by paying back loans, paying back yourself and from paying yourself.
The key with making your cash flow work for you is ensuring that there is more money coming in each week and month than is going out.
When running your small business you need to learn how cashflow works for your business and how to maximise your cashflow. That way you can ensure you’ll put more money into your bank account and control or reduce how much is going out.
Check out the tips below on how you can improve the cash flow in your business
One area new businesses often get into trouble is managing cashflow. Things starts off fine. You start winning work and the money starts coming in. Then you start spending the money. Until one day you receive a tax bill. That’s when many businesses realise they have failed to put money aside to pay things like tax. So how can you
Do you ever struggle to have enough money to pay your tax bill when it’s due? Would you like to have extra money to reinvest back into your business to help it to grow? For this to happen, you need to manage your money wisely. One simple and effective technique is to set up three different bank accounts. Each has
Does your business need a quick cash injection? Many small businesses are sitting on a gold mine of cash that is tied up in their business in different forms. Releasing this can often provide a much needed cash injection for a business. What excess assets does your business have In our experience, most businesses have excess assets of some kind.
Do you have people that owe you money that should be in your bank account rather than theirs? Many business owners are scared to chase outstanding money in case their customers say no, or that they might get angry or they are afraid if they put too much pressure on them, they may ever want to do business with you
How often are you drawing money out of your business? Drawing from your business can lead you into a trap, especially if you treat your business as an ATM to spend for personal use or your company. Here is how you can avoid falling into that trap and still be able to draw money from your business effectively: 1) Work