Home
>
Top Quick Tips
>
Top Ten Tips for Improving Your Cash Flow

Top Ten Tips for Improving Your Cash Flow

Cash is king-so they say. If you work for yourself or someone else, you need to be aware of ways to improve the cash flow. Budgeting and collecting are not glamorous but they are both key to having a successful business. Working in a successful business is much more fun than working for a struggling one!

1. Stick to your budget. (If you don't have one, make one now.) The budget is part of a business plan. You want to know exactly how much to spend on each large item you purchase and when you will have the cash to do it. Your cash flow projection coupled with your forecast will give you the proper timing for making purchases. The items you have budgeted for should also be part of the business plan.

2. Bill your clients regularly. Many business owners are so busy selling to new clients that they forget to invoice the clients they have already worked with. Put the task of billing your clients on your calendar and then stick to that schedule.

3. Get a retainer for your services before you begin the work. If you are going to be working with a client over a period of time, you will want to request some money up front before you begin to deliver the service.

4. Give a discount for early payment. You will be able to collect the money more quickly if you offer a discount for prompt payment.

5. Accept a credit card for payment. Although you have to pay the credit card company for this service, having the convenience of a credit card allows the client to pay immediately. Collection is now the problem of the credit card company.

6. Use your own credit card to finance purchases but do it cautiously. If the interest rate is low and you can pay the credit card company back relatively quickly, credit cards are often a good way to even out your cash flow.

7. Establish a line of credit with a bank. This is relatively easy to do so long as you have good credit and it gives you a cushion of cash when things are tight. Sometimes the bank will offer a really good rate to encourage you to become their customer for other banking services.

8. Put the cash that you have on hand in an interest bearing account. No reason to have cash sitting in an account that doesn't accrue much interest. As cash grows consider money market accounts, CDs and savings accounts.

9. Pay your outstanding bills judiciously. Notice which vendors are willing to wait for payment and which will charge you interest if you are late. Schedule payment to maximize the cash in your account.

10. Consider getting an expert to watch your cash flow. Have someone (financial advisor, accountant, bookkeeper) available to run financial reports each month so you know exactly where you stand in your business.

Alvah Parker is a Business and Career Coach as well as publisher of Parker's Points, an email tip list and Road to Success, an ezine. Parker's Value Program? enables her clients to find their own way to work that is more fulfilling and profitable. Her clients are managers, business owners, sole practioners, attorneys and people in transition. Alvah is found on the web at http://www.asparker.com. She may also be reached at 781-598-0388.

expert residential cleaners Park Ridge ..

In The News:

The Omoway Omo X features a modular design, obstacle detection and emergency braking, and can drive itself to charging stations, signaling the future of smart urban mobility.

PillTrek, a tiny wireless smart capsule created by Caltech, provides real-time gut health data by detecting electrolytes, metabolites, glucose, hormones, pH levels and temperature.

Learn to spot fake bank text messages with five warning signs of Chase phishing scams, including suspicious links and urgent deadlines designed to steal your account information.

Robot coyotes built on motorized cars reaching 20 mph are being deployed at military airfields as an innovative solution to wildlife threats to aircraft safety.

Explore Google Drive's strengths and weaknesses as a backup solution, including its encryption security, privacy concerns and comparison to dedicated backup tools.

As environmental challenges grow, underwater habitats gain momentum with DEEP's Vanguard, supporting short missions and Sentinel designed for 28-day stays at depth.

The new Urban Eyes safety vest features dual cameras, reflective panels and a wireless remote to deter harassers and provide peace of mind for outdoor workouts.

The $200 billion data broker industry tracks your personal details across websites, posing privacy risks that can be mitigated through data removal services.

UCC Holding has teamed up with COBOD to create desert-inspired, 3D-printed schools in Qatar, featuring dune-like wavy walls impossible with conventional construction.

Darkling beetles equipped with microchip backpacks can be guided through disaster areas using electrical signals, offering a biological solution for search and rescue.

Scammers use number porting to take control of outdated landlines still connected to financial accounts, bypassing two-factor authentication to steal funds while avoiding detection.

Twitter co-founder Jack Dorsey developed Bitchat, a privacy-focused messaging app that works offline via Bluetooth without requiring email, phone numbers or personal data.

Google is making a push to ensure its AI, Gemini, is tightly integrated with Android systems by granting it access to core apps like WhatsApp, Messages, and Phone.

A new green energy system is set to change how we capture clean power, and it all starts with the ocean. French startup Seaturns has designed technology that taps into the natural motion of the sea.

Cybersecurity researchers are warning that hackers have started exploiting flaws in chatbots to carry out AI phishing attacks.

Google has just made it easier than ever to regain control of your inbox with Gmail's new Manage Subscriptions tool.

Despite the benefits, residential power saver programs come with several potential drawbacks and concerns that have been raised by both customers and experts.

The Blackdot AI tattoo machine is quiet. It's steady. And according to early users, it hurts a lot less.

Attackers have started to exploit the very signals that users assume will keep them safe when it comes to add-ons to improve productivity or entertainment.

Located on Cerro Pachón in Chile, the world's most powerful digital camera is set to transform how we see the universe.

The innovative DQ Tower stands 28 feet tall with 420 square feet of living space, featuring floor-to-ceiling windows and premium amenities in a prefabricated design.

A new mmWave imaging system allows warehouse robots to scan and create 3D models of objects inside sealed containers, potentially revolutionizing shipping processes.

Family fraud endangers seniors when relatives exploit their trust, but removing personal data online and monitoring identity can prevent financial harm to aging parents.

A study analyzing 500,000 customer service interactions shows chatbots struggle with complex issues while human agents excel at matching customer communication styles.

Aigen's Element robot uses solar power and AI to provide farmers with a sustainable alternative to herbicides, working efficiently in cotton and soy fields.

Top Ten Tips for Improving Your Cash Flow

Top Quick Tips