If you are trying to run a business without taking care of the cash flow, then the chances of succeeding are quite less. Regardless of the business you have been managing, cash flow is important and critical, especially when it is a startup. When it comes listing the key elements of cash flow, these are nothing but accounts receivable, accounts payable and shortfalls. So, in order to navigate to success, you should be able to manage the components. Here are some tips that would help you move on successfully. For assistance, you can contact the team by dialing the QuickBooks help desk number.
Determine The Break Even Point
It is actually essential to know when you could earn profitable returns from the business. Once you get a clear idea, you would be able to achieve the goals early and predict future cash flow. The future might seem gloomy with negative cash flow and negative profit. So, focus on managing the cash flow effectively till the moment you earn profit for the first time.
Focus on Cash Flow Management
This tip might just contradict the one mentioned above. But, even when you are happy with a profitable business, you should not stop, but continue to manage cash flow. Way ahead, you would be delighted when the business is flourishing in the competitive world.
Maintain Cash Reserves
There would be many instances when you would have cash shortfalls. At that point in time, business growth would totally depend on how you make your way through the shortfalls. In case you maintain a balance in your bank account, then you can observe the cash flow without worrying about anything else.
Collect Receivables As Soon As Possible
Always make sure that you keep the payment terms as net 30 days or net 60 days once you have sent the invoice. If it’s required, then you can request someone to keep an eye on receivables and contact customers to ensure that there isn’t any delay in payments.
Extend Payables as Much As Possible
Even though you are reminding the customers to pay on time, source the best deal on payable. Think about extending the payables to net-60 or net-90 only if it’s possible. In case you anticipate a delay, then you can charge late fees as some suppliers normally think about.
Embrace Technology for Your Benefit
Apart from maintaining the cash flow over the cloud, you should always use an accounting software. Besides, you should make sure that the files are protected even if you need to transfer them or sync the bookkeeping software with a web-based package. In case haven’t used QuickBooks anytime before, then you can seek help by dialing the QuickBooks helpline number, +1-855-441-4436.
Boost Sales Through Incentives
To increase the sales, you should think creatively. You can sponsor a contest, offer referral incentives or arrange for a publicity tour. Moreover, if you have been able to maintain a long-term relationship with some of your customers, then you can host an appreciation event anytime during the year.
Finally, you should assign the task to one of your employees. The individual should inform you whenever the cash flow exceeds a certain limit.