Cash Flow Strategies — business cash flow strategies

Inventory Management Tips to Improve Cash Flow

business cash flow strategies inventory

Inventory Management Tips to Improve Cash Flow

Inefficient inventory purchasing and stocking can drain your cash flow. Make sure you are following these steps to ensure you aren’t needlessly locking up cash in your inventory. Get an inventory management system. There are several easy and inexpensive systems available. If you don’t know what inventory you have on hand, you have no way of knowing what to order and what is not selling. If you maintain “safety stock,” then analyze whether or not you use it, how often you use it, etc. You may be able to reduce the amount you keep in safety stock. Stop making or buying...

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Why You Should Never Charge Customers Late Fees

business cash flow strategies customer invoicing

Why You Should Never Charge Customers Late Fees

In researching this subject, I found countless articles advising business owners to charge late fees and finance charges. While this seems logical, I can tell you from personal experience it does not work. In assisting past employers and clients with their bill payments for the last 25 years, almost all of them told me, “We don’t pay late fees,” and they never did. I do have a caveat to the above. If you are in the business of collecting loan payments or rental payments, late fees do work. But if you are providing materials or services, charging late fees usually backfires...

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Remember The Golden Rule When Managing Cash Flow

business cash flow strategies

Remember The Golden Rule When Managing Cash Flow

I’m sure you’ve seen cash flow advice that encourages you to speed up collecting from customers and paying your vendors late. This can be a strategy, but before you set forth and execute your company’s receivable and payable policies, remember that you operate both as a customer and as a vendor. In my outsourced bookkeeping practice, I’ve seen several business owners criticize and disparage their customers for paying late, but they had no urgency or moral conviction about paying their vendors on time. One may argue it’s a Catch-22 dilemma, but most of the time, it’s just lack of awareness....

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Bartering Dos and Donts To Protect Your Cash Flow

business cash flow strategies

Bartering Dos and Donts To Protect Your Cash Flow

This blog post is about private, individual barter arrangements you make with other businesses. It's not about barter exchange clubs. Do Make sure the services you receive are perfectly timed with the services you provide. Let's say you provide janitorial services and agree to barter with a web design company. You agree to provide janitorial services for one year at $125/week in exchange for a website costing $6,500. The website will be completed in one month. This is really a financing arrangement, not a barter. You will incur weekly direct costs that require cash, such as labor and supplies, without an associated...

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Get Control of Your Business Cash with a Cash Flow Dashboard

business cash flow strategies

Get Control of Your Business Cash with a Cash Flow Dashboard

Imagine this: You walk out of your house tomorrow morning and walk to your car to drive to the office. You slide into the seat, fasten your seatbelt and start the engine. Your muscle memory takes hold of the gearshift to put the car in reverse but you also look down at it to make sure you are moving it to reverse and not drive or neutral. You suddenly notice there are no letters of D, R or N next to the gearshift. You then look at your middle console where you control your radio and air conditioner and see...

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