Cash flow managementKeeping a close eye on costs is sound cash flow management, don?t spend money unnecessarily. Make sure you are always on the lookout for better deals with suppliers, speak to staff and customers and make sure you?re not providing them with things they don?t want or need. Create a cost-cutting plan and try to work as efficiently as you can. You should also review your prices regularly, and make sure you account for any changes in the market so you don?t lose profitability. A good cash flow system should also keep you up to speed on when an invoice has been paid, or is overdue. You can send reminders to customers shortly before a payment is due.
When the cash flow dries upLots of small businesses experience cash flow problems at one time or another. Often these can be relatively easy to sort out ? look at where you can cut costs, or chase up money you are owed. Invoice factoring might be a solution for businesses suffering from late payments, and there are other forms of finance out there if you need cash to reach the next phase of growth. ?You can get better at cash flow forecasting over time, but if required, an accountant can help you,? said Sharma. ?They should also be able to discuss options if cash flow problems look likely to affect your business. You can?t leave anything to chance when it comes to keeping your cash flow healthy.? To find out more about how proper cash flow management can help your business grow, take a look at this guide from KPMG Small Business Accounting.
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