Here at Hub Advisory Group we’re passionate about helping businesses across Newcastle, Lake Macquarie and the Hunter Valley succeed.
We’ve spoken before about the importance of cash flow and how it influences your ability to pay debts, reinvest, and to build certainty against future financial challenges.
And today we’re sharing a few simple ways that you can improve cash flow in your business.
You can also read our blog on managing cash flow in the growth stage of your business here.
INVOICING & PAYMENTS
Send invoices straight away and encourage payment.
The sooner you send an invoice, the faster your client is likely to transfer the funds required. And when necessary, you can also encourage payment by sending reminders, providing incentives for paying on time and clearly outlining the penalties of late payment.
Offer electronic payment methods.
Make it simple and convenient for your clients to make payment to your business. Electronic payment methods are safe and secure and often mean you receive your funds faster.
RELATIONSHIPS
Conduct credit checks.
If you have hesitation or are concerned about a customer being able to pay on time, a credit check might be useful. Poor credit can indicate that you won’t be paid on time, and this can negatively impact your cash flow long term.
Seek trusted suppliers and service providers.
Great businesses are built on a multitude of relationships and maintaining a relationship with great suppliers and service providers can improve cash flow and stability. You may even receive loyalty discounts or incentives for regular purchases.
INVENTORY & PRICING
Know your stock levels.
Checking your inventory usage and stock levels at regular intervals will inform both your ordering processes and your cash flow projections. It also helps with business planning and budgeting.
Appropriate pricing.
It is important to understand the value of your product or service and to price it accordingly. You may need to adjust or experiment with your prices to provide greater cash flow and profit opportunities.
For help with cash flow in your business, or to discuss your business accounting needs give Hub Advisory Group a call on 4926 8000.
We offer holistic accounting, business advisory and financial planning services for a wide range of business owners across many industries and are located at 275A Hunter Street, Newcastle.