Need assistance managing cash flow? You’re not alone. The key to improving cash flow is ensuring your invoicing is accurate and timely. Invoice your customers as soon as possible, and utilise tools such as Xero’s invoice reminders to help expedite payments.
Here are some additional simple strategies you can implement to better manage cash flow and accelerate invoice payments:
- Ensure your records are accurate and up to date – This provides a clear snapshot of your financial position at any time.
- Avoid being overly lenient with customers – Be firm yet polite in your communications. Regularly monitor your accounts receivable turnover and take action sooner rather than later.
- Simplify your accounting practices – This will allow you to better manage your financial metrics. We can assist with this process.
- Keep your business and personal finances separate – This is crucial for accurately assessing your cash flow. Mixing the two can create confusion and obscure your business performance.
- Build a cash reserve – This ensures you’re prepared for unexpected costs and can take advantage of opportunities as they arise.
Start by getting your invoicing right. Develop the habit of invoicing quickly, then follow the steps above to optimise cash flow and maintain financial order.
Reach out for assistance with your invoicing and cash flow management.
