Checklist: How to Keep Your Small Business Cash Flowing
Looking for ways to boost your business cash flow? Use this checklist to see if you are using best practices to keep the cash flowing.
- Invoice immediately after you deliver goods or services.
- Consider shortening your payment terms - to 30 days from 60 days, for example.
- Offer a small discount to customers who pay their bills early and charge a penalty to those who pay late.
- Do a financial check on new customers before offering them credit. Also check their business references.
- Monitor your receivables on a regular basis and follow up with late payers when appropriate.
- Use your business credit card to pay suppliers.
- Encourage the use of payment cards - allowing you to receive next-day value for sales without having to make physical deposits.
- Work with an accountant to analyze your cash flow.
- Consider a line of credit to cover short-term needs and emergencies.
- Put your excess cash to work in a high-interest savings account. For more information on business cash flow, read 10 Ways to Boost Your Cash Flow.
Looking to develop the right strategies to maintain a healthy cash flow? Read up on ways to boost your cash flow.