Cash Flow Strategies

7 Character Flaws That Rob You of Cash

business cash flow strategies

7 Character Flaws That Rob You of Cash

# 1 Your Ego Writes Checks That Your Business Can’t Cash   Starting and owning a business produces a special high and invites you to believe crazy things your ego says. To keep the high going and feed the beast that is the ego, you start buying things you cannot afford. Things like a new car, over-sized outdoor signage or new office furniture. A successful person might consider buying these things only after the business made a profit. And that same person only considers it. # 2 Your Ostrich Borrows Too Much Money Not being able to pay the bills hurts....

Read more →


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...

Read more →


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...

Read more →


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....

Read more →


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...

Read more →