5 Tips to better Cash Flow!
More than 80% of failing small businesses don’t make it because of poor cash flow!
1~ Cut costs- It’s tough not to try to cut costs in times like this. The pandemic has affected the economy significantly, so it’s natural for any business owner to find ways to cut costs. It’s a good strategy during an economic downturn.
2~ Keep track of your expenses- To improve your cash flow, you need to tackle one of the major sources of cash flow problems: unexpected or forgotten expenses. Some expenses are easy to remember while some are not.
3~ Help your customers- If you want to help yourself by finding ways to improve your cash flow, then you need to help your customers to stay afloat too. Remember, the pandemic is affecting everybody, and not just your business. The fact is it costs five times more to attract a customer than to retain one. You can help them by offering discounts, extended payment terms and also reshape your products and services to fit their needs.
4~ Create a separate business bank account-Never mix your personal and business bank accounts. By doing so, you may find it challenging to monitor your cash flow effectively. Make sure that you have a separate bank account dedicated only for business transactions. Most banks will gladly help you set up a different business deposit account, especially if you are already an existing client.
5~ Build an emergency cash reserve- To keep your business afloat, you always have to be one step ahead. Anticipation is vital in ensuring the longevity of your business. By building a cash reserve, you provide a cushion for your company to fall back on during lean times. This cash reserve should be kept solely for financial emergencies and not for everyday business expenses.
If you have been considering hiring a bookkeeper, let Moose Creek Bookkeeping show you how our custom, outsourced bookkeeping services offer a better way. Call us at (346) 298-2252 or schedule a free consultation here.