Keeping on top of cash flow and invoicing may not be a natural part of an #entrepreneurs’ skill set but are clearly essential to the success of a small business. Follow these steps to stay ahead of the game:
- Set Payment Terms In Advance- Invest in products like invoice financing tools in order to make sure that you can get the cash you need from every invoice, even when customers have long payment terms and even when they do not pay you on time.
- Number Your Invoices-If a client has a question about an invoice, it helps to be able to find it quickly. You should number your invoices to track payments for easy reference later. This should be no problem with your invoicing software.
- Use a software tool to stay on track.-Tracking your available cash and anticipated inflow and outflow of money throughout the month can be a vital step in managing your cash flow but it can be time-consuming for a busy business owner.
- Match receivables to payables-An oft-forgotten aspect of how to improve cash flow for small business is to look at the payment terms for your suppliers and compare them to the payment terms for your customers.