Posted on 16 November '15 by , under General News.
Without profits and positive cash flow, a business is going to struggle to survive. This is why cash flow strategies should be taken seriously.
Aim for long term financial stability
When setting finance and cash flow goals for the business it is important to aim for long term stability. Businesses should realistically assess how and when it wants to reach its long term goals.
Don’t forget to consider customers who allow purchases on credit as it will help in forecasting how much cash is coming into the business and whether it will be enough to cover expenses.
Profit first and growth later
Businesses should aim to increase profits in the present and use them to grow the business in the future. Approaching it the other way around isn’t always a good idea, especially for start-up companies.
Be aware of timing
Businesses need to be aware of exactly when money is coming in and when it is going out. Although owners may not be directly responsible for the accounting side of the business, they should at least be aware
It is also important to have a plan in place to ensure that clients pay promptly so that the business can know when to expect a payment.