Whenever we talk to small business owners, one of the top challenges that repeatedly comes up in every conversation, is managing cash flow.
That’s why, to understand what small businesses are doing to manage their cash flow, we reached out to our members and asked small business owners, employees and entrepreneurs to send us their top tip to keep cash flow strong.
While the two top tips won a Square Stand each, we received a number of other great cash flow suggestions. Without further ado, here are some of the top cash flow tips by real businesses:
Create a budget for expenditure and stick to the budget. Have a seperate account to set aside ATO liabilities like GST, PAYG and superannuation. Remember that even though you own the business, the funds in the business account are for the business and its continued viability.
Cash Flow Tip #2. By Ashlee Curran from Beachcomber Take-Away
When first taking over or going into business don't get excited with all the money coming and splash out on everything because you're going to need it for the rollercoaster road ahead, and instead of buying all your equipment and everything outright look into all the rent-try-buy options.
Stay on top of your accounts and plan strategically on a daily, weekly, monthly and yearly basis. If you don't know what is coming and what has been, then you have no idea where you are at any given point, which is imperative for small business.
Cash Flow Tip #4. By Karthikeyan Velu from UCQ
1) Well developed Inventory management. 2) keep an eye on outgoing expenses. 3) Track all outstanding invoices which has been more then 5 business days.
Cash Flow Tip #5. By Genevieve Watson from Elysium Associates Pty Ltd
Send out invoices promptly, preferably the moment the service or good is provided or at regular intervals for large contracts. Make sure the due by date is clearly visible. If you are dealing with the public, rather than b2b give more than one payment option. Follow up on late payers.
If you want to share your top cash flow advice with our members, drop your tip in the comments section below.